Projects & Finance

South Korea’s Samsung C&T has secured a $630 million order from Reliance Bangladesh LNG & Power to build a combined-cycle gas power plant in Meghnaghat. Construction will start in October with a view to get the 718 MW plant commissioned in July 2022.

Terna, the Italian power grid operator, has awarded Ansaldo Energy and ABB a €70 million order to design, supply and maintain of three asynchronous compensator sets to help enhance grid inertia. Commissioning will be completed in 2020.

Kuwait Authority for Partnership Projects (KAPP) will start selling half of its shares in the 1,500 MW Az-Zour North One Independent Water & Power Project (IWPP) to the public today. With this move, Kuwait is seeking to attract private investors to reduce the burden on state budgets.

Vietnam has asked Japan to help fund several LNG import terminals, trying to maximise its share from Japan’s committed $10 billion investment across Asia. Vietnam needs to import LNG from 2022 and annual demand is seen rise to 15 million tons by 2035, mainly spurred by the power sector.

US-based Excelerate Energy will proceed with developing a floating LNG import terminal in the Bay of Batangas, Luzon, having received the go-ahead from the Philippines. The FSRU will supply gas to power stations in the region, ensuring stable electricity for metropolitan Manila.

Specialty chemical group Evonik Industries has contracted Siemens to build a combined-cycle power plant as a turnkey project at the Marl Chemical Park in the German state of North Rhine-Westphalia. The two-unit CCGT will replace Evonik’s onsite coal power plant by 2022.

French power company EDF has admitted today that works for the Hinkley Point C nuclear power plant are running 15 months late and will cost nearly £3 billion more than the planned £22 billion. Critics dismiss new nuclear as expensive, compared with cheaper cost for gas gensets and offshore wind.

GE will carry out a GT26 HE gas turbine upgrade at Drax’s 420 MW Shoreham power station near Brighton. The upgrade will increase combined-cycle efficiency by about 2.5 % and add 44 MW of power at baseload operation, once implemented in 2021.

Britain’s energy giant Drax has been given the green light for a 299 MW open-cycle gas turbine (OCGT) at Abergelli in southern Wales. Developed at a cost of £90 million, the rapid-response power unit will run an average of 1,500 hours a year to help balance the grid.

Taweelah Asia Power Company (TAPCO) has awarded Ansaldo Energia a 10-year service agreement for their Taweelah New B Extension (TNBE) combined-cycle power plant in Abu Dhabi. The full-scope, turnkey service accord covers three Siemens SGT5-4000F turbines and related equipment.

Turning Bolivia into a regional energy hub, Siemens is converting three separate simple-cycle power plants into combined-cycle units, boosting output by more than 1 GW. Scope of delivery includes 23 SGT-800 gas turbines, 11 steam turbines and related equipment for a project value of 1 billion Euros.

Accelerating its clean energy transition, Duke Energy strives to curb carbon emission by at least 50% by 2030 with the aim of achieving net-zero CO2 from electric generation by midcentury. The company plans to at least double its portfolio of solar and wind by 2025, while deploying more low-cost gas power plants.

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News in Brief

Tokyo Gas snaps up US shale assets

July 31 – The Japanese utility Tokyo Gas has agreed to raise its stake in the U.S. firm Castleton Resources to 70 percent from 46 percent to increase its foothold in shale gas production in Texas and Louisiana.  Castleton Resources holds acreage in the Haynesville and Cotton Valley formations. The transaction is scheduled to be completed on August 14.

Electrical PE market to grow 1.7% through 2027

July 30 – The market for electrical protective equipment (PE) in North America, valued at $2,787 million in 2019, is forecast to rise at an annual rate of 1.7 percent to reach $3,163 million by 2027. Main growth drivers, according to ResearchandMarkets, are ongoing power transmission projects in the context with U.S. LNG export infrastructure expansions.

GE wins turbine order from Italian paper mill

July 29 – DS Smith Paper Italia has ordered a GE LM6000PF aero-derivative gas turbine for its paper mill in Lucca, Italy. The paper mill is currently powered by two aero-derivative turbines, and the additional unit will increase plant efficiency by 2%, while assuring steam supply for the industrial process.

Aceleron secures £2m green energy investment

July 28 – UK battery developer Aceleron today announced receipt of a £2 million equity investment from BGF and Mercia Asset Management. Aceleron is BGF’s second investment into a pure clean technology, signalling a shift in behaviour as more and more fund managers support a green recovery and the UK’s policy of net-zero carbon by 2050.

NRG buys Centrica’s North American arm for over $3.6bn

July 27 – U.S. utility NRG Energy has agreed with Centrica to acquire the latter’s North American subsidiary Direct Energy for $3.625 billion in an all-cash transaction. The transaction will diversify NRG’s earnings by adding more than three million retail customers and generate an estimated $740 million in adjusted EBITDA upon closing.

Siemens rolls out Comfy app

July 24 – Siemens is deploying its workplace experience solution Comfy across its global offices, including major utility customers. The aim is to equip approximately 600 company locations by October 2020.

BlackRock puts $18bn into sustainable investment

July 23 – Sustainability aspects are poised to bring about "fundamental change" to the way financial market actors operate, said Philipp Hildebrand, vice head of U.S. investment company BlackRock. About 18 billion dollars have been put into BlackRock's sustainable investment products since the beginning of 2020, he told the German business daily FAZ, arguing this would be "only the beginning" of a much larger shift in investment practices.

Vaca Muerta output slows

July 22 – Argentina has resorted to importing LNG for the Southern Hemisphere winter as domestic production at the vast Vaca Muerta shale formation fell in the first half of 2020. State-owned IEASA purchased 28 LNG cargoes at average prices of $2.87 million British thermal units (mmBtu).

GE to implement air quality control systems in India

July 21 – GE Power India Ltd (GEPIL) has won three contracts with a combined value of $112.57 million to supply air quality control systems. One semi-dry flue-gas desulfurization (FDG) unit will be installed for Hindalco Industries’ 1x150MW power plant at the Aditya aluminium smelter in Sambalpur. A wet FDGs system will be installed on behalf of NTPC for their Feroze Gandhi Unchahar thermal power plant (2x210MW plus 2x210 MW plus 1x210MW units) in Rae Bareli, Uttar Pradesh.

Wärtsilä CEO sees “tough” H2 ahead

July 20 – Wärtsilä CEO Jaakko Eskola has told analysts he sees a “tough second half of the year ahead,” as the Finish manufacturer seeks to mitigate Covid-related business disruptions. In the segment of up to 500 MW, Wärtsilä’s market share fell from 9% to 8%, while orders for gas- and liquid- power plants increased by 1% to 17.8 GW during the twelve-month period ending in March 2020.

GE launches update to digital plant software

July 17 – GE Digital has unveiled updates to its digital power plant software: Proficy Plant Applications, Proficy Operations Hub, Proficy Historian, and Proficy CSense. The software accelerates digitization for industries and integrates related onsite power generation units.

Germany EEG fund slips into the red

July 16 – Germany's green energy fund, funded through the renewable energy surcharge (EEG levy), has slipped into the red for the first time since 2013, according to TSO data. The account, funded by end-customers through a surcharge on their power bill, fell from about €2 billion in available funds to €-1.16 billion in the first six months of 2020.

China seen overtake Japan as worlds’ largest LNG buyer by 2025

July 15 – The International Energy Agency (IEA) expects China to overtake Japan as the world’s biggest LNG buyer with imports of 128 Bcm a year by 2025, equivalent to around 174 million tonnes. However, IEA analysts cautioned this scenario is “highly dependent on China’s future policy direction” and whether that includes an ongoing push for coal-to-gas switching for industry, residential heating and power generation.

IEA stages Clean Energy Transitions Summit

July 14 – Ministers from dozens of countries, accounting for over 80% of the world economy, have participated in the first Clean Energy Transitions Summit organised by the International Energy Agency (IEA). Dr Fatih Birol, the IEA’s Executive Director, said there “clearly is momentum” behind a sustainable recovery from the economic impacts of the Covid-19 pandemic. Participants agreed to reconvene in mid-2021.

Siemens Energy to exit coal

Jul 13 – Newly formed technology company Siemens Energy wants to phase-out any operations and technology to related to coal-fired power generation, CEO Joe Kaeser said, without giving a specific timeline. Siemens had been harshly criticised earlier this year for participating in the Adani coal mine project in Australia.

Statkraft, GE enhance GB grid stability

July 10 – Statkraft and GE Power Conversion are working together to stabilise Britain’s power grid. To that end, GE will manufacture and install two Rotating Stabiliser synchronous machines at Statkraft’s site in Keith, Moray. Statkraft was awarded four stability contracts (two at Keith and two at Lister Drive) by National Grid ESO (NGESO) earlier this year.

Siemens Energy spin-off approved

July 9 – A large majority of Siemens shareholders have voted to approve the spin-off of the company’s energy business. The spin-off was approved by 99.36 percent of capital stock represented at today’s extraordinary shareholders’ meeting.

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