Markets

Google has announced it will invest approximately €1 billion in digital infrastructure and clean energy in Germany. The US technology company signed a power purchase agreement (PPA) with the French utility ENIGIE to run its data centers in Germany at nearly 80% carbon-free energy on an hourly basis starting from 2022.

Though massive efforts are underway globally to electrify industry and transport, this will not be enough to meet the Paris Agreement’s net zero emission goals, the classification society DNV warns. Scaling of hydrogen could take 20 years and is expected to “arrive too late to have the impact needed today.”

Russia’s Gazprom has posted a 60% rise in net gas sales to 272.3 billion cubic metres for the six month ending June. Income from net sales doubled to 1.4 trillion Roubles ($19.8 billion), mainly due to the rise in average gas prices denominated in Rouble and higher volumes sold to Europe and China.

Hurricane Ida made landfall at Port Fourchon, Louisiana, late Sunday, with 150 mph winds, devastating key energy infrastructure. Though the centre of the storm stayed some 45 miles southwest of New Orleans, the city experienced widespread power outages that accumulated to a full blown blackout.

The cost of producing hydrogen gas from renewables is forecast to fall sharply over the next decade, providing an affordable fuel to decarbonise the energy and transport sectors. In Germany and Texas, RES hydrogen costs could fall to $1.40 a kilogram by 2030 from the current range of $2.50 to $6.80, according to research published in Nature Energy.

Inventories of natural gas in the US will reach 3,592 billion cubic feet (Bcf) by November 1, the start of the winter heating season – nearly 160 Bcf less than usual. High withdrawals in winter 2020/21 were not replenished this summer as dry gas production stayed flat while US LNG exports keep rising, leaving little for storage.

Gas-burn for power generation will stay almost flat in India, as most of the country’s stranded gas-fired fleet is uncompetitive without subsidies or an outright collapse of international gas prices, the International Energy Agency (IEA) finds. Solar photovoltaic (PV), in contrast, is poised for “explosive growth” in India, matching coal’s share within two decades.

Near curve gas prices at the Dutch TTF trading hub must stay above the 15% coal-to-gas fuel switch trigger to displace enough gas from power generation to bolster Europe’s pre-winter storage inventories. Energy Aspects sees upside on TTF prices to €46/MWh amid risks over Russian flows this winter due to a possible delay of Nord Stream 2.

Speed, scale and scope of converting natural gas pipelines to carry low-carbon fuels such as hydrogen will support “deeper decarbonisation,” alongside a renewables build-out, IHS Markit finds. Many industries can switch to gas to reduce their carbon intensity, and conversion costs are economically viable at $40-$60 per ton of carbon.

Siemens Energy today blamed headwinds at Gamesa Renewable Energy, the company’s wind unit, for the 36.8% drop in third quarter earnings to €5.9 billion as well as lower profit expectations for fiscal 2021. Management now anticipates an adjusted EBITA margin of 2-3%, down from previously 3-5%.

Capital expenditure into oil & gas ventures has surged 30.4% in Asia as the region is staging a fast rebound from the coronavirus crisis. Higher commodity prices unlock greater flexibility in spending, Fitch Rating said, but warned an uneven uptake in vaccinations will leave the recovery in fuel demand tepid in some places.

Summit Oil and Shipping Co, the largest private fuel importer to Bangladesh, envisages contracting 1 mtpa of LNG for up to 20 years from Commonwealth’s 8.4 mtpa export facility under development in Cameron, Louisiana. Summit Group operates 3 GW gas-fired powergen capacity on the Indian subcontinent.

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News in Brief

CCUS market to reach nearly $3bn in 2025

Oct 25 – The global carbon capture, utilization, and storage (CCUS) market will grow from $1.30 billion in 2020 to $1.46 billion in 2021, according to ResearchAndMarket estimates. The rebound comes as companies return to normal operations and sales, after a pandemic-related slowdown. Analysts expect the market will keep growing at a rate of nearly 20% annually to reach $2.97 billion by 2025.

SDG&E accelerates drive towards Net Zero by 2045

Oct 20 – San Diego Gas & Electric Company (SDG&E) has set a new sustainability strategy, outlining new and accelerated goals to help meet its pledge to reach net zero greenhouse gas (GHG) emissions by 2045. SDG&E it now seeks to operate a 100% zero emissions vehicle fleet by 2035 – five years earlier than planned.

B&W develops biomass-to-hydrogen plant in Australia

Oct 19 – B&W's Renewable segment and Port Anthony Renewables Ltd have started to develop a biomass-to-hydrogen energy project in Victoria, Australia, based on B&W’s BrightLoop technology. When completed, the plant is expected to be part of the largest green hydrogen hub in south-eastern Australia.

LNG prices rise faster than oil

Oct 18 – Liquefied natural gas and pipeline supplies have experienced an even sharper increase in prices in 2021 than oil, driven by a combination of circumstances that included a strong recovery in demand in North Asia, southeast Asia and Europe, unseasonal weather and planned and unplanned capacity outages.

Wärtsilä shaft gensets to power two LNG carriers

Oct 14 – The Finish technology group Wärtsilä has been awarded a contract to supply four shaft generators to provide electricity take-off from the main engines of two LNG carriers. The ships are being built at the Hyundai Heavy Industries (HHI) shipyard in Korea on behalf of the Capital Gas Ship Management of Greece.

VoltH2 gets green light for large hydrogen plant

Oct 13 – Vision Hydrogen Corp has announced that its affiliate VoltHe has received building and environmental permits to realise its first large-scale hydrogen plant at the Dutch North Sea Port of Vlissingen. The 5 MW hydrogen plant is located near existing high voltage power and gas infrastructure as well as large wind power assets. Once operational, it will produce around 3,500 tons of green hydrogen per year and will be scalable to 100 MW or 14,000 tons.

Tesla overtakes German e-cars

Oct 12 – Sales of Tesla in Germany has overtaken that of leading German carmakers. In September, more electric Tesla Model 3s were registered in the country than leading domestic models, such as the BMW 3 Series, Audi A4 and Mercedes C-Class combined.

EnerMech spends £500k on crane training tech

Oct 11 – EnerMech has invested £500,000 in new crane simulator training systems at its Luanda (Angola), Doha (Qatar) and Great Yarmouth (UK) facilities. The British company recently formed a joint venture with 3t Energy Group to bring the KraneSIM-6000 equipment to both Qatar and Angola and offer in-country training across client organisations globally.  

Germany finances green hydrogen projects abroad

Oct 8 – The German government has agreed to support green hydrogen projects in other countries with up to €350 million by 2024, the economy ministry said when publishing a directive with relevant guidelines. Moreover, financial support is given to projects that produce and process green hydrogen for storage, transport and use in countries outside the EU through investment grants worth up to €15 million each.

UK e-car sales surge 186%

Oct 6 – Sales electric cars in the UK have surged 186% to a total of 108,000 in 2020 during the pandemic, up from just 38,000 in the previous year. Latest statistics show there were nearly 300,000 pure-electric cars on UK roads at the end of August 2021, and more than 600,000 plug-in models if including plug-in hybrids (PHEVs).

FogHorn deploys AI software at Chugoku Electric Power in Japan

Oct 4 – FogHorn, developer of Edge AI software, has deployed its Internet of Things (IoT) software at the Chugoku Electric Power hydroelectric power plant. The AI solutions will make the power gen process more efficient and enhances workplace safety. Chugoku Electric Power employs nearly 9,200 workers across 114 power units in the western part of Honshū, the largest island of Japan.

Rolls-Royce supplies MTU engines for ferry propulsion

Oct 1 – Rolls-Royce's new MT engines, automation system, and MTU Go! tool for remote service have future-proofed the high-speed catamaran Avemar Dos, run by the Spanish operator Balearia. Four MTU 20V1163 M84 units replaced the previous 1163 units, taking the vessel to a "new level of ecological soundness," the manufacturer says.

GES appoints former Puma Energy Chairman as NED

Sept 30 – Global Energy Storage (GES) has appointed the former Puma Energy Chairman, Graham Sharp, as an NED. Graham will support GES on its ‘new energies’ strategy for the energy transition, focusing on hydrogen fuels and hydrogen carriers space.

Aggreko reaches 2 GW of live power gen capacity

Sept 29 – Aggreko has today announced it has reached 2GW of live global gas power capacity and growth in flare gas to power and stranded gas projects. This new record follows a milestone of exceeding 1GW of delivered flare gas power projects in 2020.

Wärtislä renews O&M agreement with Lafarge Africa

Sept 28 – The Finish technology group Wärtsilä has renewed a long-term Operation & Maintenance (O&M) agreement with Lafarge Africa, a large producer of building materials in Nigeria. The agreement covers the 100 MW Lafarge Ewekoro power plant, which provides a dedicated supply of electricity to the company’s concrete and cement manufacturing processes.

Rolls-Royce supplies MTU engines to Sanlorenzo

Sept 27 – Rolls-Royce business unit Power Systems will become one of the leading engine suppliers for Sanlorenzo, delivering MTU 10V, 12V and 16V 2000 yacht engines with a compact IMO 3 solution. A framework contract from 2022 through 2024 has been signed at the Monaco Yacht Show.

Shell exits Permian Basin

Sept 24 – Royal Dutch Shell has sold all its upstream interested in US Permian Basin to ConocoPhillips for $9.5 billion in cash. Shell’s assets in the Permian include around 225,000 net acres with a current production of around 175,000 barrels per day equivalent.

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