Sembcorp's 1,200MW power project gets approval to partake in Vietnam's Power Development Master Plan
Sembcorp Industries (Sembcorp) has been given the green light by the Vietnamese government that its 1,200-megawatt (MW) project in central Vietnam will be included in the country's national power development plan for the 2011-2020 period.
The implementation of a capacity mechanism as part of the UK's Energy Market Reform (EMR) should be done "as soon as possible" in order to spur investment and prevent electricity shortfalls in the coming decade, Stephen Davies, Energy and Environmental Policy at E.on UK told Gas to Power Journal at the Westminster Energy, Environment and Transport Forum keynote seminar in London. "From our point of view a capacity mechanism is necessary. It's very difficult for any investor to build right now and looking at the spark spread, the market is very challenging for gas," he said.
Upgrade works at RWE npower's combined-cycle gas-fired Little Barford Power Station, located on south of St Neots, have been completed and, following a year-long £100 million upgrade, the plant is now operates with an higher efficiency of 55 percent and reduced carbon and nitrogen oxides emission, the operator confirmed.
Discoveries of offshore gas field in Tanzania are expected to prompt the government to help expand the market share of gas-fired power generation with a view to decreasing dependence on hydropower to reduce risk exposure to drought, the US Energy Information Administration (EIA) forecasts.
Brunei's national energy company Berakas Power Company (BPC) has commissioned GE Oil & Gas to install its ORegenTM waste-heat recovery systems to increase the output and efficiency of four GE LM2500 aeroderivative gas turbines at the Berakas Power Station, located outside the capital city of Bandar Seri Begawan in the Sultanate of Brunei.
Start-up of the delayed 775MW Denizli power plant, developed at a cost of €600 million under a joint venture between RWE (70%) and Turcas (30%), is expected to take place as early as June, RWE confirmed. The combined-cycle gas turbine (CCGT) plant was initially planned to commence full commercial operation at the end of 2012.
Progress Power, a British power plant developer, has proposed to build a 299MW gas-fired power plant valued at £200 million for the Eye Airfield in Suffolk. Development of the project, however, hinges on forthcoming legislation on capacity remuneration mechanisms in the UK.
"In order to get project financing we need long-term revenue certainty by successfully participating in the capacity mechanism auction," said Chris McKerrow, project manager for Progress Power on the Suffolk project.
India's Central Electricity Authority (CEA), which oversees development of the national grid for the Indian Ministry of Power, has reduced its gas-fired generation target for the current year by almost 46 per cent amid gas supply shortages. Low natural gas production output last year is expected to continue through 2013, an official told The Economic Times, despite Reliance Industry's recent announcement of a "significant gas condensate discovery in deepwater KG D6 block".
The UK government is likely to oppose an EU renewables target for 2030 which is considered "inflexible and unnecessary", energy secretary Ed Davey said. He made the comment after the European Parliament on Monday extended a deadline for the submission of amendments to a proposal to intervene in the carbon market.
May 28 - Pacific Gas and Electric Company (PG&E) and the California Energy Commission have launched a battery energy storage system pilot project in east San Jose to better balance power needs of the electric grid.
The project launch was made possible following a $3.3 million grant from the Energy Commission to PG&E that will help fund the installation and evaluation of the system.
Energy security, diversity and local reliability for cities and industries are critical features of clean energy infrastructure. An often overlooked feature, however, is the summer CHP load, which could be waste heat absorption chilling to prevent power use and to reduce fuel consumption, Manfred Klein, former chairman of the Industrial Applications of Gas Turbines (IAGT) Committee told Gas to Power Journal.
The US Energy Information Administration (EIA) expects the extension of the renewable electricity production tax credit (PTC), which Congress extended on 1 January as part of the American Taxpayer Relief Act of 2012 (ATRA), will result in the addition of significant wind capacity in the US over the next three years. A higher share of intermittent wind energy will require flexible fossil backup capacity.
News in Brief
Low-carbon batteries
Jan 26 – Geyser Batteries, a Finnish cleantech startup, has calculated the emissions of its electrochemical recuperators (ECR) to be significantly below industry averages. The ECR is an energy storage used for heavy-duty applications in the power grid and industrial machinery. The calculation, validated by the research institution VTT, shows the carbon footprint of ECR production is up to 74% lower when compared to its closest competitor, supercapacitors based on li-ion batteries.
Green hydrogen production surges
Jan 25 – Global green hydrogen production is seen skyrocket at a rate of 57% between 2019 and 2020, according to Frost & Sullivan, rising from 40,000 tons to 5.7 million tons. The hydrogen surge comes as industry and power generators increase investment in alternative low carbon technologies and more countries set binding targets to reach carbon neutrality by 2050.
Italy’s power exports Montenegro surge
Jan 22 – Italian electric power exports increased by 28% in 2020, largely driven by flows to Montenegro which surged 26% to 8.6 TWh. In contrast, domestic power demand fell 6% last year to 271.6 TWh with electricity sales from conventional plants down nearly 9% to 140.5 TWh, figures by the Italian energy exchange GME show.
US considers new nuclear
Jan 21 – The new US President Joe Biden has said his country could construct new nuclear power plants and reiterated plans to “swiftly rejoin” the Paris Climate Agreement swiftly. Germany’s environment minister, Svenja Schulze, called it illusionary to believe that newer, smaller reactors will be a technology of the future.
Mitsubishi produces methanol in Trinidad
Jan 20 – Mitsubishi Gas Chemical Company has launched commercial operations of a methanol and dimethyl ether plant in Trinidad and Tobago. The plant has an annual production capacity of one million tons of methanol and 20,000 tons of dimethyl ether, which can be used as an alternative fuel for cars and power generation.
First 8-cylinder B36:45 engine delivered
Jan 19 – Rolls-Royce has delivered the first 8-cylinder variant of its Bergen B36:45 gas engine to a tomato producer in Belgium. The medium speed genset is planned for delivery this spring and will drive an onsite power plant that generates 4700 kW electricity and 5520 kW heat. The new engine offers a 20% increase in power per cylinder and will replace an existing Bergen 12-cylinder B35:40 genset.
Moody’s upgrades Enel to Baa1
Jan 18 – Moody’s Investors Service has upgraded Enel’s long-term rating to Baa1, with a stable outlook. The upgrade reflects Enel’s progress in reducing its risk profile, analysts said, pointing at the Italian utilities ongoing investment in networks and renewables, growing geographical diversification and focus on centralised financing.
GE sues Siemens Energy
Jan 15 – General Electric has sued its German rival Siemens Energy over the alleged use of stolen trade secrets to win gas turbine contracts worth several billion dollars. GE told the US district court in Virginia that Siemens received the secret information from a Dominion Energy employee.
Orbital Energy launches Eclipse
Jan 14 – Nasdaq-listed Orbital Energy Group has launched a new subsidiary, Eclipse Foundation, a drilled shaft construction company. The new company specialises in providing services for power transmission and substations, communication tower and a disaster restoration through emergency power.
S’Korean coal and LNG imports slide
Jan 13 – South Korea’s imports of thermal coal and LNG have fallen 12% and 11%, respectively, as the government cracks down on fossil fuel usage to curb air pollution. Customs data shows that coal imports amounted to 10.2 million tons in December, down 1.4 million tons from the same month last year but up from November’s imports of 9.5 million tons.
SMC builds 1.7 GW CCGT in Batangas
Jan 13 – Excellent Energy Resources, part of SMC Global Power Holdings, is building a 1,700 MW combined cycle gas power plant in Barangay Dela Paz and Ilijan in Batangas City with investments of about 67.863 billion Philippine Pesos ($1.41bn). The project is estimated to be completed in 36 to 40 months.
UK’s National Grid issues supply warning
Jan 12 – Natural gas prices in the UK surged as National Grid issued warnings on supply deficit as LNG cargoes are being diverted to North Asia. Prices at the British NBP gas trading hub soared to the equivalent of $8.95 per MMBtu, while the JKM price for North Asian spot LNG cargoes for February 2021 was last at $19.700 per MMBt.
Fortistar invests in hydrogen
Jan 11 – Fortistar, a privately-held fund, has joined an equity investment of up to $157 million in hydrogen producer BayoTech. Cottonwood Technology Funds and the New Mexico State Investment Council also participated in the latest financing round. BayoTech’s systems produce local hydrogen close to the application, serving end users in the industrial gas and petrochemical segment as well as those who use of hydrogen to power fuel cells.
Ashtead appoints new CFO
Jan 5 - Ashtead Technology has appointed a chief financial officer (CFO) and five managers for newly created roles across its international team. The appointments are meant to cement the company’s position in the offshore energy market, including offshore wind and decommissioning of thermal power plants
NFE secures LNG for Puerto Rico, Mexico and Nicaragua
Dec 23 – New Fortress Energy (NFE) has agreed to purchase Henry-Hub-indexed LNG for its integrated gas and power businesses in Puerto Rico, Mexico and Nicaragua. The New York-based project developer said it now has covered 80% of its expected needs throughout Latin America, thus reducing its need for spot purchases and its exposure to changes in the market price for LNG.
China and Korea mandate coal-to-gas switch
Dec 22 – The Chinese government has launched a coal-to-gas boiler switching programme, targeting 7.1 million homes, which makes gas demand more weather-sensitive this winter. Similarly, South Korea mandated the closure of 15 coal-fired plants since the start of December in an effort to reduce air pollution. Analysts expect this will accelerate the drawdown of LNG terminal inventories going into Q1-2021.
GE repowers oil field in Brazil
Dec 21 – GE Power Conversion has been awarded a contract by Sulzer Pumps UK to supply motors for four water injection pumps of a Floating Production Storage and Offloading (FPSO) vessel. The 8,000 kW, two pole motors will run at 3,600 rpm with a limitation of the starting current at 300%, enabling the oil and gas field operator to optimise the generator which supplies electricity on the FPSO.
