Daily News

Indonesia’s national oil company Pertamina plans to build an onshore regas terminal to power the country’s largest oil refinery on Java. As an island nation, Indonesia uses floating LNG terminals to distribute domestic gas supplies to where long-range pipelines are lacking.

German TSOs TenneT and 50Herz are building an electricity highway to transport over 2 Gigawatt of wind energy from the North Sea over 500 kilometres to southern Germany. Siemens Energy will deliver the HVDC converters to minimise electricity loss during transmission. 

Russia’s gas giant Gazprom has built 260 km of a feeder pipeline between the huge Chayandinskoye field in Yakutia and the ‘Power of Siberia’ interconnector to China. Eager to boost exports, Gazprom is also building a link to connect the Kovyktinskoye field to the Power of Siberia pipeline in late 2022.

The German energy and transport ministries have chosen 62 large hydrogen projects that will be funded under a joint European investment scheme. To reach its 2045 climate target, Germany needs some 60 TWh of hydrogen by 2030 but domestic production can cover just a third of that demand.

Developers of LNG-to-Power projects are advised to secure flexible gas delivery terms through an aggregator before the market flips again and demand outstrips supply. According to Watson Farley & Williams, this is likely to happen by 2022 or 2023 as current Capex cuts delay new liquefaction projects.

Fast adoption of floating LNG technology across Asia is opening up new gas markets in Indonesia, Malaysia, Singapore and the Philippines. According to Black & Veatch, gas-fired power projects are “attractive for emerging markets” due to advantages in price, reliability and fuel access over developing technologies such as battery storage.

Two power projects in West Africa have received MAN engines, and the German manufacturer handed over two further plants in Gambia and Guinea. Eight MAN 14V51/60 engines drive a 110 MW plant in Mali, while six 9L51/60 engines supply a cement factory with 54 MW electricity in Senegal.

California-based Bloom Energy has agreed with Idaho National Laboratory to independently test the use of nuclear energy for electrolysis. Rather than ramping down baseload nuclear power plants, the surplus energy can be used cost-effectively to produce green hydrogen.

Falling costs for lithium-ion batteries and hydrogen electrolysers have rendered both technologies ready for mass commercialization. The International Energy Agency (IEA) projects the cost of 4-hour battery systems to fall to $220/kWh by 2040, so utility-scale battery deployment could reach nearly 220 GW by 2040.

Though green hydrogen, produced from variable wind and solar generation, can act as long-term energy storage – it is not economically viable yet. To get from 80,000 tonnes produced today to a required 35 million by 2035, governments will need to "heavily incentivise green hydrogen – and soon," analysts say, similar to past subsidies for renewables.

Reaching Net Zero emission means reducing fossil fuel use, but gas-burn is still forecast rise through 2040 – amid a lack of alternatives. The phase-out of coal and nuclear power in Germany requires gas generation to change from providing baseload to backup power and meeting residual loads.

India’s spike in Covid19 cases has made utility buyers sell LNG cargoes heading to the country as energy demand dropped amid calls for another nationwide lockdown. Six to seven LNG cargoes are already diverted, Kpler ship tracking data shows, and four tankers switched to floating storage.

News in Brief

Growth in turbine air filtration tops 3%

July 22 – The turbine air filtration market is expected to grow 3.27% annually from $1.92 billion in 2020 to reach $2.29 billion in 2026. Demand from the oil & gas industry and electric utilities had plunged during the corona crisis and subsequent economic downturn, but the latest trend towards clean energy is driving robust growth for turbine air filtration which can be widely and easily applied in the power sector.

US oil exports stay high

July 21 – Despite volatile prices, U.S. crude oil exports reached a record high in 2020 and remained strong this year, averaging 3.51 million barrels per day (b/d). Expanded ports at Houston and Corpus Christi allow for oil to be exported from the Permian Basin and Eagle Ford Basin.

CVEC to be converted to hydrogen

July 20 – Cricket Valley Energy Center (CVEC) is taking steps to run the  combined-cycle plants on hydrogen. Works to convert the plant will be carried out by GE and are scheduled to start in late 2022. One of three GE 7F.05 gas turbines at CVEC will be introduced to a 5% hydrogen blend with natural gas.

MAN ETES labelled solar impulse efficient

July 16 – MAN Electro-Thermal Energy Storage (ETES) was attributed the “Solar Impulse Efficient Solution” label by independent auditors. In January, the German manufacturer supplied to ETES heat pumps to DIN Forsyning for a heat and power plant in the Danish port city Esbjerg.

Electricity sales to US industry rebounds

July 14 – Economic recovery has caused a 5.1% rise electricity sales to US industry this year, dwarfing 2.8% more retail sales and a 2.1% rise in the commercial sector as many office workers continue working from home. The US Energy Information Administration’s (EIA) acting administrator, Steve Nalley, called the rebound in electricity sales to industry a “strong sign of rising levels of economic output as the Covid-19 pandemic recedes.”

Solar PV to triple in Asia by 2030

July 13 – Asia Pacific solar photovoltaic capacity could triple to 1,500 gigawatts (GW) by 2030. According to Wood Mackenzie estimates, China will add 619 GW of mainly utility-scale capacity while most other nations in Asia prefers distributed solar due to land constraints. Solar PV tends to be backed up by flexible gas gensets and energy storage, forming hybrid power units.

Kinder Morgan closes on Stagecoach assets

July 12 – US energy infrastructure major Kinder Morgan has closed its acquisition of Stagecoach Gas Services. The deal include 4 gas storage facilities with a 41 bcf working gas capacity and a transmission network with multiple interconnects to major interstate pipelines, including Tennessee Gas Pipeline. The Stagecoach assets add to Kinder Morgan’s approximately 83,000 miles of pipelines and 144 terminals.

Dortmund cancels electrotechnik fair

July 9 – The elektrotechnik fair, planned for 29 September to 1 October 2021, will now not be taking place in Dortmund due to requests from the industry. The next trade fair for building, industrial, energy and lighting technology will now open its doors again in spring 2023.

Hitachi to change name of ABB Power Grids

July 7 – Hitachi ABB Power Grids will become Hitachi Energy in October. The Japanese manufacturer bought a controlling stake in ABB’s grid business a year ago and is about to fully take the name of the merged company while expanding its direction towards e-mobility and data centres.

Tapping wind energy for hydrogen

July 6 – Spanish utility Naturgy and the gas grid operator Enagás are evaluating the use of 350 MW offshore and onshore wind capacity to produce green hydrogen. The fuel will be used to decarbonise the steel industry and shipyard in northwest Spain.

EU seeks to expand Green Deal to Africa

July 5 – The European Green Deal should be expanded to also include African states as partners, the German development minister Gerd Müller said. Green hydrogen production in Africa, in his view, should be a “cornerstone for economic cooperation with the Europe.”

Decom Engineering updates PCR

July 2 – Northern Ireland-based Decom Engineering has invested more than £700,000 to develop tools for repurposing and clean decommissioning of energy infrastructure. Through updated Pipe Coating Removal (PCR) equipment, decommissioned or surplus pipelines can be cleaned of multiple coatings, so they can be repurposed for used on other projects.

Cummins buys half of Momentum Fuels

July 1 – Cummins has signed a letter of intent to acquire a 50% equity interest in Momentum Fuel Technologies from Rush Enterprises. The transaction is expected to close before year-end, and the combined venture will produce Cummins-branded natural gas fuel delivery systems for the commercial vehicle market in North America.

Gazprom evaluates cost of grey hydrogen

June 30 – Scientific studies by Gazprom and the Russian Academy of Sciences (RAS) seek to solve technical challenges in producing grey hydrogen through steam reforming in the most cost-efficient way, as well as transporting the fuel to end-users. The findings of the studies will be factored into Gazprom's sustainable development scenarios up to 2050.

Redox about to overtake Li-ion batteries

June 28 – Li-ion batteries have dominated the energy storage field, but are expected to lose their leading role in stationary applications. According to IDTechEx findings, Redox flow batteries are gaining traction and are likely to overtake the installed Li-ion battery energy capacity before the end of 2030.

B&W proceeds with waste-to-energy projects

June 25 – Babcock & Wilcox’s (B&W) renewable segment has received limited notice to proceed for a waste-to-energy project in Europe as it finalizes terms for a $24 million contract with the customer. Ohio-based B&W said it looks to capitalize on an estimated addressable market of more than $7 billion in Europe over the next three years.

Japan’s gas-burn on the rise

June 24 – LNG imports for power generation in Japan have rebounded with steady volumes from the Middle East and Australia and higher cargo numbers from Russia and the US, though LNG deliveries were outpaced by thermal coal shipments. The May 2021 LNG shipments amounted to 4.95 million tonnes, or around 73 cargoes, a 8.2% rise on volumes received in May 2020, according to trade figures by the Japanese finance ministry.

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