The European Commission today revealed further detail on three options for a set-aside of carbon allowances, which could lift the price of carbon by up to €6/ton, according to estimates of Thomson Reuters Point Carbon. Higher carbon prices would help lift the profit margin (spark spread) of gas-fired power plants.
South Korea's POSCO Energy has awarded Siemens an order worth 400 million euro to supply three H-class single shaft units for the 420 MW POSCO plant project. For Siemens this is the fourth order from a South Korean buyer of H-class technology within 18 months, following orders for the Bugok III, Ansan and Andong combined cycle power plants.
Phase two of the Sabiya combined-cycle power plant (CCPP) - Kuwait's largest power plant - has started commercial operation in time to meet peak electricity demand during the hot summer months. Kuwait's power demand grows at about 7 to 10 percent per year and the government estimates peak load demand will reach 25,000 MW by 2025.
Swiss power and automation technology group ABB has won an order worth over US$ 100 million to build a gas condensate processing plant for Petroleum Development Oman (PDO) in Oman.
The spot price of natural gas at the Tennessee Gas Pipeline (TGP) Zone 4 Marcellus trading point has fallen below the spot price at Henry Hub in Louisiana. TGP Zone 4 is currently the least expensive gas traded in North America, according to EIA figures.
Wärtsilä, a leading supplier of gas engines, has signed an Operations & Maintenance (O&M) agreement with Gulf Power Ltd (GPL), to operate and maintain a power plant in Kenya.
Electricity produced from nuclear and fossil fuels in the U.S. will start to decline between 2020 and 2025, due to an expansion in renewable generation. "Natural gas represents the largest source of displaced generation," the U.S. Energy Information Administration (EIA) forecasts.
Spanish utilizes have spoken out against a proposed 4 per cent tax levy on most energy sources, claiming the taxes would erase profits.
E.on UK has refuted claims made in a parliamentary report on Monday that the introduction of Contract for Differences (CfDs) will reduce competition amongst British energy companies.
"Contrary to the Committee's view, we believe that the introduction of CfD's and a Capacity Mechanism will reduce vertical integration and increase competition in both generation and retailing," E.on UK's chief executive, Tony Cocker, said today.
The complexity of proposals to establish a Feed-in Tariff with a Contract for Difference (CfD) under the UK's draft energy bill is freezing new investment. "The proposal has now arguably become unworkable," the Common's energy and climate change select committee warned today.
The price of carbon emissions allowances is set to recover this week, Société Générale forecast, suggesting the Dec 12 EUA contract is "very close to being oversold". As for gas, the bank sees more downside for prices all along the future curve.
Wainstones Energy, a subsidiary of Carlton Power, is evaluating suppliers as is close to purchase a flexible turbine for Carlton Power's 1,520MW gas-fired Trafford power plant project.
Aggreko, a UK-based interim power solutions provider, has commissioned and started power production at a 107.5 MW interim gas-fired power plant in Mozambique.
Abu Dhabi National Energy Company (TAQA) has received the requisite parliamentary approval and signing financing arrangements for the 110 MW expansion of the gas-fired Takoradi 2 power plant in Ghana. The expansion will be commissioned in 2015, operator TAQA said.
News in Brief
Rolls-Royce conducts laser field tests in the US
May 18 – Rolls-Royce has successfully conducted laser field tests to demonstrate ‘deep magazine’ power capability for directed applications in connection with Lockheed Martin’s layered laser defense project. Deep magazine power can be provided by a battery-only system, but the Rolls-Royce ColdFire system includes both battery-powered and near-continuous firing modes provided by M250 gas turbine engines.
Gas vs oil ratio increases in the Bakken
May 17 – The ratio of natural gas to crude oil production has risen in North Dakota’s Bakken region since 2008, and continues to accelerate. According to the US Energy Information Administration's (EIA) Drilling Productivity Report, annual gas gross withdrawals in the Bakken increased by 9% to an annual high of 2.97 Bcf/d in 2021, even though the region’s crude oil production fell by 6%.
Middle East shifts to gas power
May 16 – The Middle East, a region vulnerable to climate change, is undergoing a major shift from petroleum-based power plants towards gas-fired generation and renewable power sources. Capacity additions of over 185.46 GW are the pipeline, according to ResearchandMarkets, as the regions electricity demand for industry and residential cooling is set to grow. In fact, cooling already accounts for 70% of residential power demand.
Carbon utilisation in strong demand
May 13 – The market for carbon utilisation is forecast to grow rapidly from the 2030s onwards to surpass $285 billion by 2042, driven by rising climate commitments and a favourable regulatory framework. In its latest report IDTechEx also highlights the role of technology advances such as thermodynamics which help sequester CO2 permanently.
MTU gensets approved for biofuels
May 12 – Rolls-Royce has gained approval to use synthetic fuels in its MTU Series 4000 and Series 1600 diesel engines for power generation application. Field testing confirmed both engines can use a range of sustainable fuels including biomass-to-liquid, hydrotreated vegetable oil and power-to-liquid fuels such as e-diesel.
E.ON tells Germans how to save gas
May 11 – A large-scale switch to heat pumps, solar power and better demand-side management could help save Germany nearly 100 TWh of natural gas per year, E.ON has said, calling on households to contribute to Europe’s efforts to reduce reliance on Russian gas imports. “If 10% of the homes in Germany are equipped with solar PV installations, 20% of gas boilers are replaced by heat pumps, and the average temperature in all households is reduced by one degree Celsius on average, this would lead to natural gas savings of 103 TWh per year," E.ON Energy CEO Filip Thon said, noting this volume would equate to about 30% of Germany’s current gas imports from Russia.
Exelon Q1 earnings lower following Constellation cave-out
May 10 – Exelon has reported lower first quarter earnings and a higher operating revenue, having completed the separation of Constellation Energy – Excelon’s former power gen business. Focussing now solely on transmission and distribution, Exelon’s net income from continuing operations for the first quarter of 2022 decreased to $0.49 per share from $0.53 a share in pre-year period. In contrast, adjusted operating earnings notched up to $0.64 per share, primarily due to due to higher electric distribution earnings at ComEd from higher rate base and higher allowed electric distribution. Rate increases at Excelon’s group companies PECO, BGE, and PHI were partially offset by higher depreciation expenses at BGE and PHI.
South Africa to add 2.6 GW of new capacity
May 9 – South Africa’s Department of Mineral Resources and Energy, has just announced the REIPPPP BW6 Request for Proposals (RFP). The bid round will add 2,600 MWs of new capacity to the energy mix. The ministry seeks to procure 11,813 MW of electricity from various power sources including renewable energy, storage, gas and coal.
GE Gas Power authorized as CVE Numbering Authority
May 6 – GE Gas Power’s increased focus on cybersecurity has been recognized by the Common Vulnerability and Exposures Programm as a ‘CVE Numbering Authority (CNA). As such, GE Gas Power can now assign CVE identification numbers to newly discovered vulnerabilities potentially related to its products and allow GE Gas Power to directly publish new CVE Records and streamline the reporting process.
Heliogen gets nearly $90m in funding
May 5 – Heliogen has moved from design into testing and implementation of its supercritical CO2 power gen system that will be deployed for Woodside in California. The system consists of a 5 MWe sCO2 power block integrated with high temperature solid media thermal energy storage. The demonstration project is being funded with up to $50 million from Woodside, along with $39 million from the U.S. Department of Energy (DoE).
Capstone to install microturbine in the Caribbean
May 4 – E-Finity Distributed Generation, Capstone's distributor for the Mid-Atlantic, Southeastern United States and the Caribbean, has secured an order for two C1000S microturbines for a government water authority in the Caribbean. The 2 MW system will provide emergency standby power to several pumping stations throughout the remote island community and is scheduled to be commissioned towards the end of 2022.
Forecasting solar and energy storage in CAISO
May 3 – Marubeni has chosen Veritone’s AI-based distributed energy resource management solution (iDERMS) to provide price, demand and generation forecasts at their pilot project in the California Independent System Operator (CAISO) SP-15 region. In addition to day-ahead and real-time generation figures, Veritone will also forecast production and demand for the overall CAISO region.
Forecasting solar and energy storage in CAISO
May 2 – Marubeni has chosen Veritone’s AI-based distributed energy resource management solution (iDERMS) to provide price, demand and generation forecasts at their pilot project in the California Independent System Operator (CAISO) SP-15 region. In addition to day-ahead and real-time generation figures, Veritone will also forecast production and demand for the overall CAISO region.
Steam turbines in high demand
April 29 – The market for steam turbines for power generation will grow around 6.5% through to 2027, driven by the build-out of combined-cycle gas power plants – notably in Asia and the United States, ResearchAndMarkets finds. Coal power projects in China, India and Bangladesh also require significant numbers of steam turbines. “Many of the countries in Asia-Pacific cannot provide 24-hour electricity to its citizens, and the cheapest way to achieve the objective is to build thermal [coal power] plants and use steam turbines,” analysts commented.
LNG-fuelled power for Antigua
April 28 – Antigua Power Company Limited (APCL) has contracted Wärtsilä to supply and install a 46 MW dual-fuel power plant on the Caribbean island. The plant will operate primarily on regasified LNG, imported through a small-scale import terminal developed by U.S.-based Eagle LNG in partnership with APCL.
ION launches risk analyser
April 27 – ION Commodities has built a cloud-based solution – FEA Analyzer – to help energy and commodity firms transition to new renewable energy markets while simultaneously optimizing trading strategies and supply chains. The tool combines pre-trade analytics with risk management and asset optimization, all powered by predictive analytics and stochastic models.
Capstone to service 600kV microturbine
April 26 – Capstone has landed a rental contract for a 600 kilowatt (kW) microturbine-based system with one of the largest energy infrastructure companies in North America. Due for commissioning in mid-May 2022, the plant will supply power to remote mid-stream operations along the customer's gas pipeline in Colorado.
