Daily News

Gas and variable renewables will be the only energy sources for which demand is higher in 2050 than today. Rapidly falling capital costs for solar photovoltaic will make the technology 25% to 50% cheaper than new gas-fired power projects, DNV GL analysts told Gas to Power Journal.

Malay property and industrial developer Tadmax Resources has received government approval to develop a 1,200 MW integrated gasification combined-cycle power plant (IGCC) on the island of Pulau Indah. Posco is building the plant, with a planned in-service date in January 2023.

The Palestinian Energy Authority and Massader are about to agree on terms to start construction of a much-needed power plant in Jenin. The 450 MW combined-cycle gas power plant will be the largest of its kind in the conflict-ridden country, fuelled by gas from the Gaza Marine field.

Electric utilities in Turkey are burdened with $47 billion debt of which up to $13 billion are at risk of defaulting. Before the end of this year, loans worth some $10 billion, mostly for gas-fired power plants, will need to be restructured, the Banks Association of Turkey (TBB) warned.

Rising dry gas production in the United States will be sufficient to meet demand for power generation and exports at a lower price than forecast. With this assement, the U.S. Energy Administration (EIA) lowered its Henry Hub spot price forecast for 2020 by 20 cents to an average of $2.55 per million British thermal units (mmBtu).

Japan’s Kawasaki Heavy Industries has spent $175 million to develop a floating gas-fired power plant, fuelled by LNG, and aimed at the Southeast Asian market. The power ships will be offered to utility customers on remote islands and in isolated locations with underdeveloped gas pipeline infrastructure.

Hungary’s CHP Erömü, a subsidiary of Veolia, has awarded Wärtsilä a 5-year extension to a power plant service agreement for the combined heat and power station. High plant availability of more than 95% had led to the deal.

Northwest European near-curve gas prices have fallen in recent days. With the TTF Oct-19 trading as low as 3.86 $/mmbtu, this low price drives up demand for LNG shipping to higher-priced markets in Asia. Energy Aspects says the TTF Oct-19 contract has already priced in much of the incremental demand from the power sector switching to gas from coal.

To test Power-to-Gas systems locally, Fraunhofer ISE installed a modular hydrogen injection system in the local gas distribution network in Freiburg, southwest Germany. Researchers coupled an electrolyzer with 120 kW electric connection power with a small hydrogen unit that is capable of storing 300 kWh of chemical energy.

Nearly 16 gigawatt of utility-scale gas power generation has been added in Florida between 2008 and 2018 – the most in any U.S. state. The share of natural gas in Florida’s energy mix surged from 47% to 72%, and EIA analysts anticipate gas-fired generation will continue to displace less cost-competitive plants fuelled by coal and petroleum liquids.

Spot LNG deliveries to Japan have decreased despite record-low prices as power generators like Jera, Tepco, Kepco and Chubu Electric prefer thermal coal over natural gas. Peak electricity demand is now largely met by thermal coal which remains the cheapest fuel source.

Mitsubishi Hitachi Power Systems (MHPS) has received an order from Hongkong Electric to supply power generation equipment for Lamma Power Station's Unit 12. The 380 MW combined-cycle gas power unit will be built with a view to start full commercial operations in early 2023.

Germany’s nearly simultaneous coal and nuclear exit is jeopardizing the country’s current high power supply security. Unless new flexible gas generators and renewable power sources get built in time, along with sufficient grid infrastructure, Germany is set to miss several key energy transition targets for the year 2020, McKinsey finds.

Wind and solar power are forecast to outperform combined-cycle gas power plants in most parts of the United States on a levelized cost of energy (LCOE) basis through 2040. However, Wood Mackenzie finds that combined-cycle gas power stations beat renewables on cost in Florida, the Midcontinent and in some spots in PJM West where gas prices are exceptionally low.

Caithness Energy, a privately-held American Independent Power Producer, is preparing to start construction of the 1,864 MW Guernsey Power Station in Ohio in 2022. The CCGT project, to be powered by GE 7HA.02 gas turbines, is moving to the next phase after having just secured $1.6 billion in financing.

News in Brief

Brexit will not impact UK gas supply

Oct 16 – Security of power and gas supply in the UK will not be jeopardized this winter by the country’s imminent departure from the European Union, even in the event of a hard Brexit, National Grid said. In its assessment, the TSO factored in a halt to flows via the Belgium and Dutch gas interconnectors “from EU exit day one”, but said ongoing deliveries from Norway, the UK Continental Shelf and storage will continue as usual.

Ferrybridge C gets demolished

Oct 15 – Four cooling towers at the Ferrybridge Power Station have been taken down as the coal-fired power station will make way to a new, high-efficiency gas power station. Operator SSE shut down the 500 MW Ferrybridge C unit in March 2016 and now started to tear it down.

Global energy storage tops 10 GW by 2025

Oct 14 – The global market for grid-connected energy storage will grow by 6,900 MW, or 16.6% to reach over 10,500 MW by the end of 2025, according to Reportlinker.com. Germany will add over 267 MW energy storage installations over the next five to six years, while 330 MW will come from other European markets. These numbers are dwarfed by China, where up to 1,200 MW energy storage units could be connected to the grid by 2025.

Wärtsilä services EDL plant

Oct 11 – Energy Developments Ltd (EDL) of Australia has awarded Wärtsilä a service contract for gas engine-based baseload power plant at the McArthur River zinc mine in Northern Territory. The maintenance approach for the 53 MW onsite power plant is no longer pre-planned and scheduled but has been changed to condition-based and predictive maintenance, with an advisory contract.

EPH buys CCGT in Galway

Oct 10 – The Czech energy company EPH has received regulatory approval to purchase an 80% stake in the 400 MW Tynagh Energy combined-cycle gas power plant in Galway, Ireland. Mountainside Partners will continue to own the remaining stake in the CCGT, which operates based on a security-of-supply contract from the Irish TSO based on guaranteed power prices.

ITM gets £38m boost from Linde

Oct 9 – Sheffield-based ITM Power, maker of electrolysers for hydrogen production, has been boosted by a £38 million cash injection, as Linde acquired a 20% stake in ITM at 40 pence per share. Looking ahead, ITM said it is seeking to raise £14 million from new and existing institutional investors.

Drax to convert two power units

Oct 8 – Drax Group has received government approval to convert up to two coal-fired generating units at its power station in North Yorkshire to run on natural gas. With this ruling, the UK regulator overturned objections by ClientEarth, stressing some fossil power is vital for the UK to backup intermittent renewable power source.

Storage use tops 80% in key U.S. regions

Oct 7 – Gas storage utilization in the United States is rising in the autumn, with net injections topping 112 billion cubic feet (Bcf) in the first week of October. According to EIA figures, underground storages are at least 80% full in the East, Midwest, and South Central non-salt regions, allowing for seasonal withdrawals to help meet peak-day gas demand throughout the upcoming winter.

Maine, NY aspire to 100% clean energy

Oct 4 – Three U.S. states—Maine, New York, and Ohio—have updated their renewable portfolio standards (RPS), since May 2019. As a result, Maine and New York joined California, Hawaii, Nevada, New Mexico, and the District of Columbia in requiring 100% clean electricity by 2050.

TransAlta to built CHP in Alberta

Oct 3 – Canada-based Transalta and SemCAMS Midstream have agreed to develop, construct and operate a new cogeneration facility at the Kaybob South No. 3 sour gas processing plant in Alberta. To be built at a cost of some 105 million, the CHP will have an installed capacity of 40 MW. Start of commercial operation is targeted for late 2021.

GE’s 100th HA turbine sold in Greece

Oct 2 – Greek industrial firm Mytilineos has ordered a GE 9HA.02 gas turbine to be the heart of the 826 MW Agios Nikolaos combined-cycle gas power plant. This deal also marks the 100th unit of GE’s HA gas turbine sold. Construction of the CCGT is due to start before the end of the year.

ABB launches M4M analyzer

Oct 1 – Swiss technology firm ABB has launches its first Bluetooth-equipped network analyzers, called M4M. The system gathers data from distribution grids and connects them to a cloud-based control system, allowing users to react on energy consumption and on-site power generation trends.

Microsoft invests in wind power

Sept 30 – Microsoft and ENGIE have entered a long-term solar and wind energy power purchase agreement (PPA) in the United States. The deal will see Microsoft purchase a total of 230 MW from two ENGIE projects in Texas, bringing Microsoft’s renewable energy portfolio to more than 1,900 MW.

Gazprom tackles issue of ownerless gas grid

Sept 27 – Gazprom, the main supplier of pipeline gas to Europe, is trying to settle the issue of ownerless gas pipelines – a relic of the former Soviet Union. Abandoned gas transmission pipeline spanned 6,651 kilometers as of March 1, with the issue seen as “especially acute” in the North Caucasus region where half of this infrastructure is located. If no owner registers these facilities within three months, Gazprom will take over to ensure reliability and safety.

Investors flock to Myanmar

Sept 26 – Fitch Ratings has singled out Myanmar’s power sector as one of the largest beneficiaries of foreign direct investments (FDI) worldwide. Nearly $21.2 billion was poured into power generation and energy infrastructure projects thus far in 2019, which is 27% of total FDI under the Myanmar Investment Law.

Is hydrogen Singapore’s future fuel?

Sept 25 – KBR and Argus have been selected to conduct a feasibility study on hydrogen imports and downstream applications for Singapore through to 2050. The aim is to assess the feasibility and cost-effectiveness of hydrogen use in Singapore’s power generation and transport sectors

Diablo Unit-2 offline

Sept 24 – Unit-2 at the Diablo Canyon nuclear power plant in California is offline for a scheduled maintenance and refuelling, the operator PG&E said. During the outage, several gas-fired power plants will be dispatched to make up for the missing capacity.