Projects & Finance

A consortium led by ACWA Power, the Saudi power plant developer and investor, has signed a Power Purchase Agreement (PPA) with for a 2,300-MW project to be built in Luxor, southern Egypt, at an estimated cost of $2.3 billion. Phase-1 of the project will start up in summer 2022, and the entire plant is due to be operational in summer 2023.

Duke Energy has stepped up efforts to finalize and commission the second 820-MW unit of its 1,640 MW Citrus County Power Plant by the end of December. In April, the utility first announced plans to have the entire new CCGT fully operational by the end of 2018.

State regulators have narrowly approved Minnesota Power’s strategic move to take a stake in a $700 million gas-fired power project, rebuking concerns from ratepayers and a state law judge. The 525-MW combined-cycle plant will now be built in the town of in Superior, Wisconsin, by Minnesota Power and Dairyland Power Coop. Start-up is slated for 2025.

Advanced Airfoil Components, a JV of Siemens and Chromalloy Gas Turbine Corp, has just opened a new manufacturing headquarter in the Tampa Bay Area, Florida. The new HQ represents a capital investment of $139 million and will add 350 jobs, with recruitment set to start in early 2019.

Teething problems at three large gas power stations in Pakistan – Haveli, Bhikki and Balloki – have now been resolved and final pre-operational test will be carried out in the December-January period. An official from Pakistan LNG told Reuters that delays at the three plants had forced Pakistan to divert some shipments of contracted LNG cargoes.

Progressive Energy, the energy arm of the ElcaTex Group, has awarded MAN Energy Solutions an EPC-contract to set up a combined-heat-and-power (CHP) plant. The 54.8 MW plant, powered by three MAN 18V51/60 engines, will produce electricity and process steam for a nearby textile factory in Choloma, Honduras.

Japan’s Mitsubishi Electric has been selected to supply Electric Power Generation Enterprise (EPGE) in Myanmar with 46 gas-insulated switchgears (GIS), 7 transformers and others. The equipment will be delivered beginning next year for use at substations due to start operation in 2021.

A banking consortium led by JBIC, the state-owned Japan Bank for International Cooperation, has agreed to lend US$1.31 billion for a LNG-fuelled power generation project on the Indonesian island of Java. With a capacity of 1,760 MW, the power station will build and operated by Marubeni, Sojitz and Persero, while LNG supply will be arranged by Mitsui O.S.K. Lines. Start-up is scheduled for 2021.

Qasim Al-Fahdawi, the Iraqi electricity minster has signed a milestone agreement with Siemens CEO Joe Kaeser over the weekend to implement the company’s ‘Roadmap for repowering Iraq.’ Plans are to add 11 GW new gas-fired power plants in Iraq within four years, which would effectively boost existing capacity by almost 50%.

As decommissioning of coal plants and grid-integration of renewables lead to rising variability of power supply in the area of the Midcontinent Independent System Operator (MISO), GE and Clarke Energy have been asked to supply a turnkey combined heat and power (CHP) plant to Sebewaing Light & Water (SL&W), a municipal utility. The CHP is slated to start operating in Q1-2019.

Iran’s MAPNA Group has been selected to supply turbines and generators to the Jandar combined-cycle gas power plant, under construction in Western Syria. Turbine delivery to the Jandar CCGT is part of a wider contract that will see MAPNA supply generating equipment to a total of 65 power units with a combined capacity of over 9,600 MW.

PW Power Systems, part of MHPS Americas, has signed up its first customer active in oil & gas upstream. U.S. Well Services (USWS) ordered 30-megawatt FT8 MOBILEPAC aero-derivative gas turbine generators to power its new electric frack fleet. USWS said its first two new-build  fleets will be deployed for two of its customers during the first quarter of 2019.

TenneT, Thyssengas and Gasunie Deutschland have announced plans to build a power-to-gas plant, designed to turn renewable energy into gas for industrial use in the Ruhr region. With an output of 100 MW, it will be the largest P2G plant of its kind in Germany, and is scheduled to be operational by 2022.

National Grid Gas Transmission has awarded RWG a contract to undertake a series of maintenance work at their Siemens aero-derivative gas generator fleet located across the UK mainland. The 3-year contract, includes major overhaul of SGTA-20 (Industrial Avon) and SGT-A35 (Industrial RB211) gas generators.

Çalık Enerji, a leading Turkish EPC contractor, has completed the on-base process for the installation of a second gas turbine and generator at the 2x450MW Turakurgan combined-cycle power plant in Uzbekistan. The CCGT is being developed by Uzbekenergo and funded by Japan International Cooperation Agency (JICA).

Page 14 of 147

News in Brief

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.

MAN, Daewoo, HSD partner on engine digitalization

July 16 – MAN Energy Solutions, Daewoo Shipbuilding & Marine Engineering (DSME) and HSD Engine (HSD) have signed a strategic agreement to cooperate in the field of marine engine systems digitization. The three companies also work together on auxiliary systems and data analysis, aiming to apply part of their know-how to power generation and related sectors.

Canada launches first utility-scale smart microgid

July 15 – The Ontario-based municipal utility North Bay Hydro Services is cooperating with the smart grid solutions firm S&C Electric to launch Canada’s first utility-scale microgrid system. Among some solar power, the 789KW microgrid system will be powered by two 265kW natural gas generators.

Macquarie funds Mexican power plant

July 12 – 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.

B&V launches distributed energy group

July 11 – Black & Veatch has launched a dedicated distributed energy group to place its conventional power business in the context of the global energy transition. The distribute energy group will look into new fuel sources such as hydrogen and aspires to “re-power the more-than-century-old power industry.”

Funding secured for Kazah CHP project

July 10 – Kazinform Erg has committed to spend $500 million on a gas cogeneration station that will provide heat and electricity to the south of Kazakhstan. Over 87% of Kazakhstan’s electricity is generated from fossil fuels, and in 2018 the country produced 107,060 billion kWh of electricity, a 3.8% increase over the previous year and enough to cover total power use of 103,228 kWh.

Bitcoin mining uses much energy

July 9 – Estimates of bitcoin’s electricity consumption are wide-ranging, on the order of 20‑80 TWh annually. According to George Kamiya, digital energy analyst at the International Energy Agency (IEA), bitcoin mining consumed around 45 TWh in 2018 although this has risen significantly this year. Through the first six months of 2019, bitcoin mining has already consumed an estimated 29 TWh.

Coal exit doesn’t impact Germany's supply security

July 8 – Electricity supply security in Germany is set to stay “very high” even as the country begins to phase out coal-fired power generation, the Federal Ministry for Economic Affairs and Energy (BMWi) said in a monitoring report. “Energy supply is adequately ensured”, the ministry said, in all scenarios examined up to 2030. Thereafter, things are less clear but the German Coal Commission is adamant that its proposal to exit coal power by 2038 is feasible and won’t seriously impact reserve margins.

Hydrogen demo plant starts in Adelaide

July 5 – The Australian Gas Networks (AGN), part of the Australian Gas Infrastructure Group (AGIG), has received A$4.9 million in government funding for an A$11.4m hydrogen electrolyser demonstration project at the Tonsley Innovation District in Adelaide. At the test site, AGN plans to blend 5% renewable hydrogen with natural gas for supply to customers using its existing gas distribution networks. The project is based on a Siemens proton exchange membrane (PEM) electrolyser, running based on wind and solar power.

Wärtsilä forms biogas solution

July 4 – Wärtsilä Puregas Solutions, specialists in biogas upgrading technology, has merged with Wärtsilä’s biogas liquefaction team to create a one-stop-shop service for biofuel production. Having installed the world’s largest bioLNG facility in Skogn, Norway, Wärtsilä will deliver two more bio-LNG plants to customers in Scandinavia. The company’s Puregas CA process recovers more than 99.9% of the biomethane present in raw biogas.

PNM to close San Juan Generating Station

July 3 — New Mexico's largest energy holding, PNM Resources, has filed an application to the Public Regulation Commission to close the coal-fired San Juan Generating Station. For replacement power, PNM said the preferred option was a mix of gas power plants, solar and wind farms and new battery storage facilities. The utility strives to be ‘emissions-free’ by 2040.

ADB opens office in Singapore

July 2 — The Asian Development Bank (ADB) has decided to open an office in Singapore. The lean office with twelve staff will focus on the expansion of its private sector operations, e.g. through Public-Private Partnerships. “We estimate that developing Asia will need $1.7 trillion per year in infrastructure investments until 2030 to maintain the region’s growth momentum,” commented Singapore’s finance minister Heng Swee Keat.