Projects & Finance

Siemens Energy Service Fossil in Newcastle today announced a new multi-million pound order win from Drax Power Ltd to supply and install of three intermediate pressure (IP) steam turbine modules at the UK's largest power plant.

India's GMR Group has sold its 70 percent interest in GMR Energy (GMRE), the biggest stakeholder in Island Power Project, a gas-fired power plant on Jorung Island, to FPM Power Holdings for S$660 million ($530 million).

GE and the Sakhalin provincial government today signed a Memorandum of Understanding (MoU) to jointly develop power generation projects with a view to improving the energy security of Sakhalin Island, Russia's largest island which relies heavily on oil and gas exports.

As part of the accord, GE will deliver and install two LM2500+G4 aeroderivative gas turbines for the 60-megawatt Nogliki project which is currently under development.

GE has supplied two Frame 6B 3-series gas turbine generators for the currently under construction UBE Batam Power Plant, owned by PT Medco Power Indonesia, a subsidiary of PT Saratoga Power and PT Medco Energi Internasional. Once operational, the gas-fired plant, located on Indonesia's Batam Island, will reduce the company's dependency on burning oil to generate electricity by adding about 80MW of gas-fired capacity.

In an interview, Mete Maltepe, General Manager at GE Power & Water – Turkey, told Gas to Power Journal that the company has invested approximately $500 million in Turkey to date, with a further $900 million planned over the next three years. This includes the provision of turbines to various gas to power projects such as the new plant in the Erzin district operated by Akenerji, the Egemer Elektrik Uretim A.S. (Egemer), and the cogeneration plant at Bursa, operated by Bis Enerji Elektrik Uretim AS.

PG&E Corporation posted a slight year-on-year rise in the total cost of electricity generation from 4,016 million to 4,162 million in the annual 2012 report, while the costs of natural gas fell from 1,317 million to 861 million.

Following completion of its S$1 billion ($860 million) second stage repowering project, Singapore's Senoko Energy believes it is now in an advantageous position for selling power to consumers at competitive prices.

Drax Group said it is on track with works to convert half its power generating capacity from coal to wood pellets and other environment-friendly fuels such as natural gas, as new EU levies on burning coal threaten operational profits at Britain's largest coal fired plant.

Genalta Power and Shell Canada have agreed to build a produced-gas-to-power plant that will make use of the gas associated with Shell's bitumen production in an effort to reduce gas flaring at its Peace River oil sands leases.

Siemens Energy expands gas turbine sales to the US market with the latest contract win to install an SGT6-2000E gas turbine at a simple-cycle power plant owned by Oklahoma Municipal Power Authority (OMPA).

Power group Ipsa has postponed the closure of a sale agreement for its remaining two Siemens Westinghouse W701 DU gas turbines until the end of this month, after the prospective buyer – a Malaysian power development company – walked away from an $31-million offer.

The New York State Public Service Commission has given the green light to Cricket Valley Energy Center LLC, an affiliate of Advanced Power, to build a proposed 1,000 MW power plant in Dutchess County.

Mitsubishi Heavy Industries (MHI) has been commissioned to install 4 sets of a 700 MW class supercritical pressure steam turbine, generators and boiler components at a large-scale oil-fired power plant (2,800 MW) to be built by Saudi Electric Company (SEC).

Electricite de France (EdF) is close to entering a deal with the Cambodian government to build a gas-fired power plant at the country's coast, adjacent to Total's offshore hydrocarbon block in disputed waters.

Wärtsilä has won an order to supply generating sets and auxiliary equipment for new gas-fired power plant being build on behalf of the Portland General Electric Company, an investor owned utility.

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News in Brief

Slow start of STT pipeline

Oct 18 – U.S. gas exports to Mexico have not picked up substantially despite the start of the Sur de Texas-Tuxpan (STT) pipeline. Exports are still below 6.0 billion cubic feet per day (bcf/d), although there no current postings regarding maintenance on the Sistrangas pipeline that feeds from NET Mexico.

EIB defers ban on fossil projects

Oct 17 – Luxembourg-based European Investment Bank (EIB) has bowed to pressure from Germany and the European Commission and deferred its decision to ban loans to fossil-fuel projects until mid-November. Germany wants the bank to keep financing gas-fired power projects as it views the cleaner-burning fossil fuel as a vital backup for renewable energy sources.

Brexit will not impact UK gas supply

Oct 16 – Security of power and gas supply in the UK will not be jeopardized this winter by the country’s imminent departure from the European Union, even in the event of a hard Brexit, National Grid said. In its assessment, the TSO factored in a halt to flows via the Belgium and Dutch gas interconnectors “from EU exit day one”, but said ongoing deliveries from Norway, the UK Continental Shelf and storage will continue as usual.

Ferrybridge C gets demolished

Oct 15 – Four cooling towers at the Ferrybridge Power Station have been taken down as the coal-fired power station will make way to a new, high-efficiency gas power station. Operator SSE shut down the 500 MW Ferrybridge C unit in March 2016 and now started to tear it down.

Global energy storage tops 10 GW by 2025

Oct 14 – The global market for grid-connected energy storage will grow by 6,900 MW, or 16.6% to reach over 10,500 MW by the end of 2025, according to Reportlinker.com. Germany will add over 267 MW energy storage installations over the next five to six years, while 330 MW will come from other European markets. These numbers are dwarfed by China, where up to 1,200 MW energy storage units could be connected to the grid by 2025.

Wärtsilä services EDL plant

Oct 11 – Energy Developments Ltd (EDL) of Australia has awarded Wärtsilä a service contract for gas engine-based baseload power plant at the McArthur River zinc mine in Northern Territory. The maintenance approach for the 53 MW onsite power plant is no longer pre-planned and scheduled but has been changed to condition-based and predictive maintenance, with an advisory contract.

EPH buys CCGT in Galway

Oct 10 – The Czech energy company EPH has received regulatory approval to purchase an 80% stake in the 400 MW Tynagh Energy combined-cycle gas power plant in Galway, Ireland. Mountainside Partners will continue to own the remaining stake in the CCGT, which operates based on a security-of-supply contract from the Irish TSO based on guaranteed power prices.

ITM gets £38m boost from Linde

Oct 9 – Sheffield-based ITM Power, maker of electrolysers for hydrogen production, has been boosted by a £38 million cash injection, as Linde acquired a 20% stake in ITM at 40 pence per share. Looking ahead, ITM said it is seeking to raise £14 million from new and existing institutional investors.

Drax to convert two power units

Oct 8 – Drax Group has received government approval to convert up to two coal-fired generating units at its power station in North Yorkshire to run on natural gas. With this ruling, the UK regulator overturned objections by ClientEarth, stressing some fossil power is vital for the UK to backup intermittent renewable power source.

Storage use tops 80% in key U.S. regions

Oct 7 – Gas storage utilization in the United States is rising in the autumn, with net injections topping 112 billion cubic feet (Bcf) in the first week of October. According to EIA figures, underground storages are at least 80% full in the East, Midwest, and South Central non-salt regions, allowing for seasonal withdrawals to help meet peak-day gas demand throughout the upcoming winter.

Maine, NY aspire to 100% clean energy

Oct 4 – Three U.S. states—Maine, New York, and Ohio—have updated their renewable portfolio standards (RPS), since May 2019. As a result, Maine and New York joined California, Hawaii, Nevada, New Mexico, and the District of Columbia in requiring 100% clean electricity by 2050.

TransAlta to built CHP in Alberta

Oct 3 – Canada-based Transalta and SemCAMS Midstream have agreed to develop, construct and operate a new cogeneration facility at the Kaybob South No. 3 sour gas processing plant in Alberta. To be built at a cost of some 105 million, the CHP will have an installed capacity of 40 MW. Start of commercial operation is targeted for late 2021.

GE’s 100th HA turbine sold in Greece

Oct 2 – Greek industrial firm Mytilineos has ordered a GE 9HA.02 gas turbine to be the heart of the 826 MW Agios Nikolaos combined-cycle gas power plant. This deal also marks the 100th unit of GE’s HA gas turbine sold. Construction of the CCGT is due to start before the end of the year.

ABB launches M4M analyzer

Oct 1 – Swiss technology firm ABB has launches its first Bluetooth-equipped network analyzers, called M4M. The system gathers data from distribution grids and connects them to a cloud-based control system, allowing users to react on energy consumption and on-site power generation trends.

Microsoft invests in wind power

Sept 30 – Microsoft and ENGIE have entered a long-term solar and wind energy power purchase agreement (PPA) in the United States. The deal will see Microsoft purchase a total of 230 MW from two ENGIE projects in Texas, bringing Microsoft’s renewable energy portfolio to more than 1,900 MW.

Gazprom tackles issue of ownerless gas grid

Sept 27 – Gazprom, the main supplier of pipeline gas to Europe, is trying to settle the issue of ownerless gas pipelines – a relic of the former Soviet Union. Abandoned gas transmission pipeline spanned 6,651 kilometers as of March 1, with the issue seen as “especially acute” in the North Caucasus region where half of this infrastructure is located. If no owner registers these facilities within three months, Gazprom will take over to ensure reliability and safety.

Investors flock to Myanmar

Sept 26 – Fitch Ratings has singled out Myanmar’s power sector as one of the largest beneficiaries of foreign direct investments (FDI) worldwide. Nearly $21.2 billion was poured into power generation and energy infrastructure projects thus far in 2019, which is 27% of total FDI under the Myanmar Investment Law.