Projects & Finance

Lower first quarter revenues have not hindered Entergy Corp. to issue a Request for Proposals (RFP) to build a 1,200 MW combined-cycle gas power plant in Texas, with proposals due in early August. The New Orleans-based utility posted earnings of $119 million in Q1-2020, down from $255m.

GE’s Grid Solution business has energized a dynamic reactive compensator, installed for UK’s National. The static synchronous compensator (STATCOM) delivers up to 975 Mvar, adding inertia to stabilize the grid to support operations of the 1 GW Nemo Link interconnector to Belgium.

South Korea’s Hyosung Group and the German chemical group Linde have agreed to build the world’s largest liquid hydrogen plant at cost of Won 300 billion ($244 million) in Ulsan by 2022. The project is part of South Korean government’s plans to use more hydrogen for transport and power gen.

MAN Energy Solutions, in consortium with Burmeister & Wain Scandinavian Contractor (BWSC), will supply two 18V48/60TS engines to expand the capacity of DPP2 Bemland power plant in Suriname from 84 MW to 126 MW. Project finance for this second upgrade comes from OLIBIS.

U.S. pipeline operator Williams has placed in service Phase II of the Hillabee project, an important Transco expansion that brings more natural gas to Florida’s growing power generation market. The expansion provides firm capacity via Sabal Trail Transmission, allowing for uninterrupted flows from Alabama all the way to Florida.

TC Energy Corp has sold its interests in three Ontario gas-fired power plants to Atura Power, part of Ontario Power Generation, for $2.8 billion. The units include Halton Hills Power Plant (683 MW), Napanee Generating Station (900 MW) and TC Energy’s 50% interest in the Portlands Energy Centre (550 MW).

Wärtsilä is finalising a 70 MW energy storage system project in the California Independent System Operator (CAISO) energy market. The system will allow the grid operator to add renewables and store the surplus energy for later use, once operational in mid-2020.

Kawasaki Heavy Industries has commissioned MAN Energy Solutions to supply two 12V51/60 dual-fuel engines for the Miyako Island power plant, owned and operated by the Okinawa Electric Power. The order prompts the very first installation of dual-fuel engines in Japan.

Multilateral Investment Guarantee Agency (MIGA) has issued guarantees worth $74.6 million to Globaleq for its equity investment in Phase-4 expansion of the Azito power plant in Ivory Coast. The expansion will increase the capacity of the combined-cycle plant by 253 MW to a total of 710 MW.

The General Electricity Company of Libya (GECOL) has urged authorities to consider a new power plant of up to 2,000 MW at a landfill site near the South Tripoli Gas Power Station (500 MW). The new CCGT could partly use the methane emission from landfill, lowering its operating costs.

Kraftanlagen, the German subsidiary of Bouygues Construction, has been awarded a €100 contract to modernize and extend a combined heat and power plant. Once operational, the CHP will supply 117 MW of electric power and up to 190 tons per hour of process steam for InfraLeuna’s chemical complex near Leipizg.

General Electric has modernized Bashkir Generation’s TTP-2 combined-cycle power plant (519 MW) and completed an inspection and repair of the Siemens SGT 800 turbine. GE’s Cross-Fleet Solutions unit injects the company’s proprietary technology into other equipment manufacturers’ (OEM) units, effectively adopting them into GE Services’ installed base.

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News in Brief

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.

MIVOLT launches cooling fluid

May 7 – MIVOLT, part of the British company M&I Materials, has launched two specialist fluids to improve cooling efficiency at data centres. The electricity demand of data centres is forecast to rise to 20% of global supply to accommodate lifestyle changes like 5G internet network, autonomous vehicles and bitcoin mining.

Germany adds 1,300 km to power grid

May 6 – Germany has made progress in expanding its strained power grid. According to the Federal Network Agency (BNetzA), over 1,300 kilometres of new power transmission lines have been built and another 830km approved. A further 3,600km are planned to be built by 2030 to alleviate grid bottlenecks and allow transporting rising volumes of offshore wind southbound.

 

 

 

Oman nationalizes first IPP

May 5 – Manah Power, the first privately-run Independent Power Project (IPP) in Oman, has been transferred to state ownership, following the expiry of a Power Purchase Agreement (PPA) between United Power Company and state-owned OPWP. Manah IPP was developed under Build-Own-Operate-Transfer (BOOT) model, which stipulates an eventual nationalization of the assets – a feature absent in subsequent IPPs.