Projects & Finance

Indianapolis Power & Light Company (IPL) has filed a request with the Indiana Utility Regulatory Commission (IURC) to invest $631 million into a new 650MW combined-cycle gas turbine (CCGT) power plant at its Eagle Valley Generating Station in Morgan County, near Martinsville, Indiana. Construction works are scheduled to begin in 2014 and the plant is expected to be completed in 2017.

State owned electricity supplier Namibia Power Corporation has extended the tender closing date to prequalify for the engineering and design of the Kudu gas field and the construction of the $1.1 billion 800MW gas-fired combined-cycle gas turbine (CCGT) Kudu Power Project it will feed, by two weeks to 17 May. In pre-qualification clarifications, the company said the extension is once-off and final. It will announce the winning bidders by March 2014.

Wärtsilä has signed a three year Operations & Maintenance (O&M) agreement with Central Termica de Ressano Garcia, owned by South Africa's Sasol New Energy and Mozambique's state utility Electricidade de Moçambique (EDM), covering the company's upcoming gas engine power plant in Ressano Garcia which is scheduled for completion by May 2014.

Siemens Energy has won an order from Hyundai Engineering and Construction Co., to deliver two SGT5-2000E gas turbines with associated generators for the Punta del Tigre combined cycle power plant (535 MW) in Ciudad del Plata, Uruguay. The two power units are scheduled to come online in fall/winter 2015/16.

UK bank Standard Chartered has been appointed by Azura Power West Africa to lead the debt capital raise for a new $700 million open-cycle gas turbine power station to be built near Benin City in Nigeria's Edo State.

Florida Power & Light Company (FPL), a subsidiary of NextEra Energy, has started-up operations of the Cape Canaveral Next Generation Clean Energy Center in Florida. The gas-fired combined-cycle plant with a capacity of over 1,200 MW cost FPL $900 million to build, coming in $140 million under budget.

Two turnkey 744MW gas-fired combined-cycle power plant (CCPP) projects in Oman, Sohar 2 and Barka 3, have been completed and commissioned by Siemens Energy and its consortium partner, the South Korean EPC contractor GS E&C. The plants originally went into simple-cycle operation in 2012 to meet Oman's increasing demand for electricity before being put into commercial operation in combined-cycle mode this month to meet peak electricity demand during the upcoming summer.

Old Dominion Electric Cooperative (ODEC) announced on Tuesday that it will seek approval to construct a new natural gas-fired power plant named the Wildcat Point Generation Facility near the town of Rising Sun, Maryland on existing property of its Rock Springs Generation Facility. ODEC says the plant will generate about 1000MW of power – enough to supply 390 000 homes annually – and is expected to become operational in 2017.

Sembcorp Industries has sealed a deal to develop its first energy-from-waste facility outside Singapore. The 49MW plant project, located in Teesside, UK, will be developed under a 40:40:20 joint venture between Sembcorp, SITA UK (part of SUEZ Environment) and ITOCHU Corp.

At the 2013 Russian International Energy Forum in St. Petersburg, Siemens Gas Turbine Technologies (SGTT) and power producer OGK-2, an open joint stock company, sealed a long-term service contract for PGU-800 – Russia's largest combined cycle power plant (CCPP).

Xcel Energy has proposed adding up to three new gas-fired peaking units to boost electricity production during periods of high demand in Minnesota and North Dakota. The proposal aims to replace coal-fired capacity at its Black Dog plant in Burnsville, Minnesota, which is due to be retired in 2015 by installing a 215MW gas turbine. It also aims at installing one or two, as needed, 215MW gas turbines at a yet to be selected site near Hankinson, North Dakota.

Clarke Energy, a distributor and service partner for GE's Gas Engine Business, has been contracted by the Nigerian medical equipment maker IMIL to build a 14MW captive combined heat and power (CHP) plant power the company's manufacturing of syringes and healthcare products for the West African Market.

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News in Brief

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.

U.S inventories at record highs

May 4 – Inventories for crude oil and natural gas have reached a new record high in the United States, as fuel demand declines both for transport and the electric power sector. From March 13 – when a national emergency was declared due to the Covid-19 pandemic – to April 24, U.S. commercial crude oil inventories increased by 74 million barrels, or 16%, according to government figures. The acute scarcity of crude storage on April 20 led to a sell-off of future contracts at negative prices.