Projects & Finance

The Argentine utility Central Puerto has purchased the 280-MW Brigadier López power plant from state-owned Integración Energética Argentina for an estimated $165 million, effective April 1. The buyer said it aims to boost the installed capacity of the open-cycle gas power unit by adding a 140-MW steam turbine.

Boston-based Clean Energy Future has stepped up efforts to raise financing to start construction of the 940-MW Trumbull Energy Center in Lordstown, Ohio, this summer. The aim is to commission the plant in 2020. The project had been held up by a lawsuit with Macquarie, the majority owner of the nearby Lordstown Energy Center.

PTT Global Chemical (GC) has signed a 10-year extension to its service agreement with General Electric that will see the latter service six GE 6B and three Frame 5 gas turbines at GC’s Map Ta Phut Industrial Estate power plant in Rayong, Thailand.

ABB’s service team in the United Arab Emirates has installed Ekip UP circuit breakers – low-voltage digital monitoring and control units – in substations run by the Sharjah Electricity & Water Authority (SEWA). The retrofit lowered cost by 50% and dramatically improved the units’ operational flexibility.

The Australian government has agreed to support a second Bass Straight interconnector – the 1.2 GW Project Marlin – with up to A$65 million ($40m). The funding was granted based on a feasibility study by TasNetworks which shows the power cable, set to deliver renewable power from Tasmania to Victoria, is both technically feasible and economically viable.

Following a 9E gas turbine installation at Iraq’s Ministry of Electricity’s (MoE) Al-Quds power plant, GE Power now prepares to provide maintenance, supply part and rehabilitation services for up to seven 9E turbines at the 874-MW plant in 2019.

Novel, a Swiss-Italian joint venture between Alpiq and Geogreen, has turned to General Electric to modernize its gas combined-cycle cogeneration power plant in Novara, northwest Italy. The contract will see GE upgrade the gas turbine that drives the CHP to increase power output and steam for the industrial process at Radici Chimica’s chemical plant.

Taiwan Power Company has awarded a contract worth 130 billion Japanese Yen ($1.17bn) to GE and its EPC partner Marubeni for the DaTan 8&9 project. The upgrade will see GE equip the units with four HA turbines, boosting output to over 2,000 MW.

After more than a century in operation, Alabama Power’s 1,221 MW Plant Gorgas will be shut down as retrofits, mandated under Obama-era regulation, would be too costly to run it at a profit. Retrofits related to the handling of coal ash would cost around $300 million, said the operator, who now takes steps to shift to cleaner fuels.

To stabilize power supply in Guinea, MAN Energy Solution will install six 18V32/40 engines in a power plant near the capital city Conakry. The 53 MW power plant is being set up on behalf of Guinea’s Tè Power Company in collaboration with the Turkish EPC company Iltekno.

Mitsubishi Hitachi Power Systems (MHPS) has won an order to supply a turbine and other components for a blast furnace gas (BFG)-fired combined-cycle plant build to power operations of the Chinese steelmaker Maanshan. Operations of the 180 MW plant are scheduled to start at the end of 2020.

Electricity, not natural gas, will drive the compressors of the Annova LNG export project in a bid to lower the facility’s carbon footprint. Developers already signed an agreement with the South Texas Electrical Cooperative (STEC) for supplies of 405 MW of electricity to cool and liquefy up to 6 mtpa of LNG.

Ground has been broken on the Montgomery County Power Station, a 993-MW combined cycle gas turbine plant under construction next to the existing Lewis Creek Power Plant in Willis, some 46 miles north of Houston. For Energy Texas it is their first plant in 40 years, and due operational by mid-2021.

Bangladesh’s Ministry of Power, Energy and Mineral Resources and Siemens have signed a joint development agreement for the construction of an integrated LNG regas and power generation project. The 3,600 MW plant will be built at Payra, a small seaport in southern Bangladesh.

The Finish technology group Wärtislä has built and handed over two gas engine-driven power plants in the Dominican Republic. The additional capacity is needed to meet rising electricity demand from the growing tourist industry on the island.

Page 9 of 148

News in Brief

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.

Cost for decarbonizing industry tops $21tr

Aug 16 – Total costs to fully decarbonize the four most polluting industries – cement, steel, ammonia and ethylene – are estimated to amount to $21 trillion between today and 2050. McKinsey said this could be lowered to about $11 trillion if zero-carbon electricity prices come down further compared to fossil fuel prices. In this event, industry could switch to using electricity for heating processes.

Co-firing Braskem plant with hydrogen

Aug 15 – Siemens is making fossil energy greener at the Braskem onsite power plant in Brazil. In this modernization project two SGT-600 gas turbines are co-fired up to 60% with hydrogen, enhancing efficiency for the production process of the adjacent the petrochemical complex.

Canada's CO2 tax to hit CCGTs

Aug 5 – Change in Canada’s carbon emissions tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could significantly lower the profitability of gas generation and could prompt SaskPower reconsider its planned Moose Jaw gas power station.

GE CFO steps down

Aug 2 – Jamie S. Miller, General Electric’s chief financial officer, has decided to quit after two years in the job and 11 years with the company. Having overseen GE’s fiscal activities during a period of intense restructuring, Miller will remain in office while the GE board is looking for a successor.

Siemens HR boss quits

Aug 1 – Janina Kugel, Siemens chief HR officer, is leaving the company amid an apparently scattered working relationship and stark personal differences with CEO Joe Kaeser. Her contract will expire by mutual agreement on January 31, 2020.

ABB standardizes eBus chargers

July 31 – Zurich-based ABB, a member of the ASSURED consortium, is working on standardizing the specifications for automatic charging of heavy vehicles. The aim is to drive down the total cost of ownership for electric fleet operators, helping increase adoption of eBuses and eTrucks. Conformance and interoperability tests will be carried out in Q4-2019.

U.S. Senate helps fund EV charging stations

July 30 – The need for expanded electric vehicle charging infrastructure is greater than expected given that there had been over 1.75 million electric vehicles (EV) in North America at the end of 2018, a nearly 60% increase from the previous year. To help fund additional charging stations, among other things, the U.S. Senate approved the $287 billion America’s Transportation Infrastructure Act (ATIA).

PNOC, Lloyds to develop merchant LNG-to-Power projects

July 29 – Philippine National Oil Co. (PNOC) has signed a Memorandum of Understanding (MoU) with Lloyds Energy to develop a 1,200 MW LNG-fuelled power plant in partnership with Mitsubishi. Dubai-based Lloyds Energy is looking at ways to develop integrated LNG import facilities and gas power plants on a merchant basis in Bataan and Batangas provinces.

Macquarie finances CCGT in Mexico

July 26 – Macquarie Capital has chosen Credit Agricole, Natixis and SMBC to co-finance a $380 million combined-cycle gas power plant. The 560 MW plant is designated to be built in San Louis Potosi, a city in central Mexico.

Naturgy cashes in on gas network

July 25 – Spanish gas utility Naturgy has posted a 7% rise in core earnings for the first half of the year due to strong gains from its gas network business that helped offset falling revenues from power generation and slimmer LNG margins.

French court rejects appeal against Total CCGT

July 24 – Judges at an appeal court in Nantes have thrown out an appeal by environmentalist against Total’s planned Landivisiau combined-cycle gas power plant in Brittany. The 440 MW project, initiated by Direct Energy which was since acquired by Total, is over two years behind schedule. The French grid operator RTE has singled out the Landivisiau CCGT as “critical” in guaranteeing supply security in winter 2020/21 due to the planned shutdown of four coal power plants.

U.S. gas production falls in wake of ‘Barry’

July 23 – Shut-ins related to Hurricane Barry have scaled back U.S. gas production by 1.6 billion cubic feet per day, compared to last week, while power sector gas demand rose by just over 2.0 bcf/d. Consequently, there is significantly less gas available for storage so the injection rate has halved, according to Energy Aspects figures.

Blackout after fire at Madison substation

July 22 – Electricity is gradually being restored at Madison, Wisconsin, after 13,000 people experience a blackout following an explosion at a substation near Madison Gas & Electric’s 100 MW gas-fired Blount Generating Station. No injuries were reported.

Fuel switch could abate 1.2bn tons of CO2

July 19 – Some 1.2 billion tonnes of CO2 could be abated by switching to gas using existing infrastructure, if prices and regulation are supportive. According to the International Energy Agency (IEA), this would be enough to bring global CO2 emissions back down to where they were in 2013.

IEA launches methane tracker

July 18 – A new ‘methane tracker’, launched by the International Energy Agency (IEA), provides up-to-date estimates of current oil and gas methane emissions by drawing on the best available data. Analysts stressed methane emissions could be reduced by nearly half at no net cost.

Canada’s CO2 tax also affects gas power

July 17 – Change in Canada’s carbon tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could cause SaskPower to reconsider its planned upcoming Moose Jaw gas power station.