Projects & Finance

NRG Energy is to acquire the 560MW equivalent Gregory Cogeneration Plant in Corpus Christi, Texas after entering into a $244 million agreement with a consortium of affiliates of Atlantic Power Corporation, John Hancock Life Insurance Company and Rockland Capital. The plant has a nominal generation capacity of about 400MW and steam capacity of more than a million pounds per hour – an amount equivalent to 160MW of electrical power.

GE is ready to invest $110 million to build a new Global Research Center in Oklahoma, creating 125 high-tech jobs with the aim of driving technological advancements in the oil and gas sector and bringing products to market faster.

Malta's energy ministry and state utility Enemalta will invite bidders to express interest for a long-term power purchase agreement (PPA) and a gas supply agreement (GSA) on 11 April. The winning bidder of a tender process will be required to supply about 200MW of electricity from a new combined-cycle gas turbine (CCGT) power plant and corresponding LNG regas facilities.

Alstom has been awarded a €125 million contract by Lake Road Generating Company, L.P. to service its 844MW gas-fired combined-cycle power plant (CCPP) located in Dayville, Connecticut. The scope of the agreement covers the plant's three Alstom GT24 gas turbines.

Siemens has received a $300 million order from Panda Power Funds for the turnkey supply of the natural gas-fired 758MW Panda Temple II Power Project in Texas. The multi-shaft combined-cycle project is due to be completed at the end of 2015 and will be able to supply the needs of about 750 000 homes. It will utilise Siemens' Flex-Plant 30 technology and is being built in consortium with Bechtel.

Wood Group GTS has been awarded a $1.6 million contract by CNOOC and Shell Petrochemicals Company Ltd (CSPC), a joint venture between CNOOC Petrochemicals Investment Ltd and Shell Nanhai B.V., to supply new hot gas path components for a GE Frame 6B gas turbine in China.

Business expansion in Brazil is high on the agenda of E.ON, Germany's largest' power supplier, so the latest accord to increase its share in Brazil's electricity producer MPX to just over 36 percent is seen as a strategic move to counterbalance the company's ailing power generation business in Europe.

SPX Corporation's Thermal Equipment and Services sector has won a contract worth $35 million to supply an air-cooled condenser (ACC) for Dalia Power Energies' new 835MW gas-fired combined cycle power plant (CCPP) which will be built in the Tel Tzafit region in Israel. The contract was awarded by Alstom - the engineering, procurement and construction (EPC) contractor for the plant.

MAN Diesel & Turbo has won an order worth €270 million to supply 14 18V48/60 diesel engines for the 194MW Zouk and 78 MW Jiyeh power plants located near Beirut, Lebanon. The scope of supply includes kits for converting the engines from diesel to gas-fired operation in the medium term. They are expected to be converted to run on liquid and gaseous dual-fuel capacity once the region's gas infrastructure is up and running.

Construction of Calpine Corporation's new 309MW gas-fired Garrison Energy Center in Dover, Delaware has begun, according to local media reports. The combined-cycle power plant (CCPP) is expected to become operational by June 1, 2015 and is designed to accommodate a further 309MW expansion, should market conditions be favourable.

Alstom has renewed a maintenance contract worth €90 million with Petrobas for seven years to service power generation equipment at their Governador Leonel Brizola (Termorio), Fernando Gasparian (Piratininga) and Celso Furtado (Termobahia) gas-fired combined cycle power plants (CCPPs) in Brazil.

AltaGas Ltd. has entered into a purchase and sale agreement with affiliates of LS Power Equity Advisors to buy Blythe Energy, LLC through its indirect wholly owned subsidiary AltaGas Power Holdings (U.S.) Inc. for $515 million. Blythe Energy owns the Blythe Energy Center, a 507MW natural gas-fired combined cycle power plant (CCPP), associated major spare parts and a related 230 kV 67-mile electric transmission line in Southern California.

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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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