Markets

Northern Powergrid, TSO for Britain’s North East, Yorkshire and Lincolnshire, has launched a call for flexibility services. The expression of interest call is open to all customers who can shift the time of energy use, or provide flexible supply from distributed power and energy storage.

Gazprom has made a loss due to a weak Russian currency and 40% plunge in sales to Europe as the pandemic depressed demand and prices. For the nine months ended Sept. 30, Gazprom booked a net loss of 218.38 billion Rubles ($2.85 billion) compared with a 1.048 trillion Rubles profit in the pre-year period.

Winter has come early in northern China this year and municipalities fired up district heating plants from November 1, causing stock-draws and encouraging buyers to look for spot LNG. Seasonal LNG demand also keeps rising in South Korea due to coal power plant closures, widening the JKM-TTF spread.

The pandemic has slashed the UK’s energy demand by 12% in the first three quarters of the year as the economy contracted by 11.3%. Up to 30,000 jobs in Britain’s oil and gas industry are at risk and the lobby group OGUK urges to government to help the industry transition to a green energy future.

Fast-start capability is vital for peaking plants and about a quarter of US power generation capacity can start up within one hour. Most hydroelectric turbines can go from cold start to full operations in less than 10 minutes, as can aero-derivative and some flexible combustion turbines.

Gazprom says the global health and economic crisis in 2020 keeps a lid on high-cost shale gas production, with US LNG exports seen as “insufficiently competitive.” The current economic slowdown could create a niche especially in China and Europe, to be filled by cheaper Russian conventional gas.

Economies of oil exporting countries in the Middle East will shrink 6.6% this year compared to 1.1% for importers, the International Energy Agency (IEA) forecasts. But analysts urged cash-strapped utilities to make use of cheap energy from solar PV to produce hydrogen for export instead.

Germans are embracing electric cars more quickly than initially assumed, so carmakers now calculate over 14.8 million pure electric cars and plug-in hybrids could be on the roads by 2030. This fast e-vehicle adoption would require more charging infrastructure and boosts electricity demand.

Russia’s Gazprom has been delivering more natural gas than contracted to China through the ‘Power of Siberia’ pipeline. Upon request by China’s CNPC, daily deliveries were raised by up to 25% in October and during the first twenty days of November. Further increases are planned in 2021.

Factoring in health impacts of air pollution into the Levelized Cost of Electricity (LCOE) would promote coal-to-gas switching across Asia. Boston Consulting Group finds that levying a price of $40 per ton on carbon emissions in China would render gas-burn 30% cheaper than coal.

Build-out of India’s power interconnectors and electricity trade between regions will likely result in more power generation from solar and less from coal. Modelling varying load shapes by region, analysts expect low-cost solar PV to account for 62% of India’s power mix by 2050.

Importing more Russian gas through Nord Stream 2 is “the cheapest option for Germany” as demand rises from currently just above 90 Bcm per year to 110 Bcm by 2034. Short-term marginal cost of Russian gas is $2.6 per MMBtu, according to Rystad data, compared to $4/MMBtu for US LNG.

Page 15 of 240

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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