Projects & Finance

Siemens has installed the world’s first HL-class gas turbine, a SGT6-9000HL, at Duke Energy’s new 402 MW simple-cycle unit at the Lincoln Combustion Turbine Station near Denver, North Carolina. During a four-year testing period the customer only pays some fuel costs. When testing is finished in 2024, Duke will receive the unit at a discount.

Wärtsilä has been awarded an engineered equipment supply contract for a 40 MW baseload power plant in Shwe Taung, south-central Myanmar. The plant will be equipped with four Wärtsilä 34SG gas engines and is due operational in April 2020.

EGE Haina, one of the largest utilities in the Dominican Republic, has contracted Wärtsilä to convert the Quisqueya 2 power plant to natural gas operation. The 215 MW Flexicycle plant, powered by twelve 50DF dual-fuel engines, used to run heavy fuel oil (HFO).

Northern German utility HanseWerk Natur has chosen INNIO, the Jenbacher engines maker, to install and commission a new gas-fired combined heat and power (CHP) unit at its district heating power plant near Segeberg, Schleswig-Holstein. Efficiency of the revamped CHP now exceeds 92%.

Britain’s prime manufacturer Rolls-Royce and VPower Group have signed a large deal for delivery of MTU gas gensets to China. Under the contract, Rolls-Royce will supply over 200 MTU Series-4000 gensets with a total power output of 430 MW, starting from October 2019.

C-Energy, an independent Czech power producer, has become the first user of Roll-Royce’s new medium-speed B36:45V20 gas engine at a cogeneration plant in Tabor, some 100km southeast of Prague. Both B36:45V20 engines were manufactured at Bergen Engines' facilities in Norway.

Austria-based INNIO, formerly part of GE Power, has supplied another four Jenbacher J320 gas engines to China Water Industry Group in Guangdong province, bringing the total number of installed engines to 104 units. China Water uses the J320 engines in landfills to generate energy from waste.

Hungarian utility Tatabanya Erömu has contracted Wärtsilä to upgrade the automation and UNIC engine control system of utility’s 18 MW grid balancing power plant, running on three 34SG gas engines. The extended maintenance accord includes performance guarantees of 95% plant availability, and the ability to run at 10% load.

Siemens has been contracted to supply the complete electrification for a new paper production line at Palm’s paper mill in Aalen, southwest Germany. The order includes three SGT-800 gas turbines – at the latest 62 MW rating – and a SST-300 steam turbine for the client's new-built cogeneration plant.

The Asian Development Bank (ADB) has granted a $180 million loan to Gulf PD, a joint venture of Gulf Energy Development and Mitsui, to build and operate a combined-cycle gas power plant in Rayong, Thailand. Total development costs for the 2,500 MW power project are estimated at $1.6 billion.

SRP, a large community-based utility in greater Phoenix metropolitan area, has decided go ahead with the Sonoran Energy Center – a 250 MW / 1,000 MWh battery project to be built south of Buckeye by 2025. Tapping Arizona’s abundant solar resources, the hybrid project will help SRP meet peak summer demand while saving fuel costs.

Siemens has completed an extensive overhaul of the 794 MW Dunamenti combined-cycle power station in Százhalombatta, Hungary, in 51 days – “a short time for such a big project,” according to Vinod Philip, CEO of Siemens Service Power Generation. Works included a rotor exchange of the gas turbine and a control system upgrade to SPPA-T3000.

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News in Brief

Siemens to service Kalamkas gas turbines

June 4 – JSC Mangistaumunaigaz, one of Kazakhstan’s largest oil and gas producers, has contracted Siemens to service two STG-800 gas turbines at a power plant, designed to meet the entire energy needs of the nearby Kalamkas oil and gas field. The nine-year contract covers turbine maintenance and eventual upgrades as well as remote monitoring of operations.

NamPower to invest $575m on grid expansion

June 3 – Namibia’s state-owned utility NamPower is planning to spend $575 million over the next three years in upgrading and extending its power transmission infrastructure. Namibia imports 60% of its total electrical energy requirement, primarily through bilateral contracts from South Africa’s Eskom and to a lesser extent, the Southern Africa Power Pool (SAPP).

UK TSOs call for £900m green gas investment

June 2 – Britain’s five gas network companies – Cadent, National Grid, NGN, SGN and Wales & West Utilities – have urged the Government to unlock over £900 million (€1bn) for new green gas infrastructure. Research by the Energy Networks Association (ENA) shows that if investment into zero-carbon hydrogen infrastructure started today, the UK could save energy bill payers £89 billion (€99.2bn) by 2044 – five years prior to its 2050 net-zero targets.

Exxon, INNIO about to launch gas engine oil

June 1 – ExxonMobil and INNIO have announced the imminent launch of their first co-engineered and co-branded natural gas engine oil. The U.S. oil major and the Austrian engine maker have just extended their global lubricant collaboration agreement for INNIO’s Jenbacher Type 2, 3, 4, 6 and 9 natural gas engines.

BelGAS launches new pressure regulator

May 29 – BelGAS has introduced its new P1098 High-Capacity Pressure Reducing Regulator, a large-volume regulator for natural gas, propane and other fuels. The pilot-operated device has a large-area actuator diaphragm, allowing for fast and accurate response to modulating gas flow conditions. It is adaptable for low to extra-high pressure—up to 400 psi main valve inlet.

GE to sell lightning business

May 28 – GE has signed a definitive agreement to sell its lighting business to Savant Systems, a provider of smart homes. CEO H. Lawrence Culp called the divestment “an important step in the transformation of GE into a more focused industrial company.” The transaction is expected to close in mid-2020.

China’s fuel demand recovers

May 27 – The Chinese government has lifted restrictions on private travel since April which pushed up demand for transport fuels. Gasoline demand has recovered particularly fast and is expected to return to last year’s levels by June 2020. Wood Mackenzie estimates gasoline consumption to reach 3.4 million barrels per day (b/d) in the second quarter, down just a 0.8% year on year. Diesel or gasoil demand is expected to reach 3.4 million b/d in Q2 2020, a 3% decline year-on-year. Overall, China’s oil demand is seen rise a “modest” 13.6 million bpd, or 2.3%, in the second half of 2020.

Wärtsilä to retrofit CHP in Spain

May 26 – The Finish engine maker Wärtsilä has bagged an order to supply and install a 34SG gas-fuelled engine generating set for Rofeica Energia's combined heat and power plant in Barcelona, Spain. The installation of the gas engine will allow Rofeica to switch the CHP from heavy fuel oil to gas-fuelled operation, reducing emissions.

New York body rejects William’s plans for gas pipeline expansion

May 21 – New York’s and New Jersey’s state bodies for environmental conservation have rejected Williams’ plans for the Northeast Supply Enhancement project, designed to transport 400 million cubic feet per day of gas from Pennsylvania to New York. The state bodies had already denied wetland permits in 2019, but Williams pipeline subsidiary Transco filed another application with the U.S. Federal Energy Regulatory Commission (FERC), arguing firm services under the project were agreed with UK’s National Grid for customers in New York City districts of Brooklyn, Queens, Staten Island and Long Island.

UK inflation at 4-year low amid falling energy costs

May 20 – The rate of inflation in the UK has fallen to a four-year low as the pandemic pushed down global oil and fuel prices which translate into lower wholesale power prices. The consumer price index fell to an annual rate of 0.8% in April, down from 1.5% in March, according to the Office for National Statistics.

Deficit grows in German green energy fund

May 19 – German regional grid operator TransnetBW has warned of a growing shortfall in the country’s fund for green energy sources, financed under the so-called renewable energy (EEG) levy. TransnetBW, the TSO in southwest Germany, said “due to the EEG cost allocations defined for 2020, we anticipate there will be a negative year end bank account balance in the high three-digit million euro range for 2020.”

Spanish gas companies ‘resilient’

May 18 – Spain’s regulated gas companies “should prove to be resilient” to external shocks arising from coronavirus containment measures, Standard & Poor’s analysis finds, calculating with an average drop in EBITBA at less than 3% in 2020. A new remuneration framework for 2021-2026, recently enacted by the Spanish government, provides enhanced visibility rated grid operators amid the pandemic.

German electricity prices second highest in EU

May 15 – Taxes and the renewable energy surcharge have pushed up Germany’s household electricity prices to the second highest level in Europe, topped only by prices in Denmark. While Danish households paid 29.2 Euros per 100 kWh on average in the second half of 2019, prices in Germany averaged 28.7 Euros, according to the EU statistics office Eurostat.

Calpine’s Q1 earnings fall

May 14 – Calpine, America’s largest generator of electricity from gas and geothermal, has reported a net income of $128 million for the first quarter of 2020, down from $175 million in the prior year period. Lower commodity margins and unfavourable change in income taxes were partially offset by earnings from hedge positions for the three month ending March 31.

Siemens to supply hybrid plant in the Philippines

May 13 – Berkley Energy has contracted Siemens Energy to build a hybrid power project on the island of Mindoro in the Philippines. The project links 16 MW wind power with battery storage, stabilizing energy supply in a remote location with a weak link to the grid and reducing its dependence on diesel.

U.S. energy emissions fall

May 12 – Energy-related carbon emissions in the United States have fallen more than energy consumption, down 2.8% over the course of last year to 5,130 million metric tons (MMmt). Power sector emissions were down 145 MMmt, due to a switch from coal to gas and renewables. In April 2020, emissions experienced another unprecedented fall in due to Covid-19 lockdowns.

MAN expands Omincare concept

March 11 – MAN Energy Solutions’ service brand has extended its ‘PrimeServ Omnicare’ concept from turbomachinery to the marine and power segments. The one-stop service solution is now also applicable for maintenance of third-party machinery, including engines, turbochargers and related auxiliaries.