Utilities in Europe currently have access to a lot of natural gas, but it is cheaper for them to use their coal-fired plants for generating electricity, Albrecht Müller von Blumencron, director project finance Bayern LB said today. Nonetheless, he foresees a "brighter future" for the gas-to-power sector in Europe in the mid-term, provided utilities will have to more flexible gas supply.
The U.K. will face a capacity gap at the end of this decade. Investors in new flexible gas-fired power generation capacity will have to find a way to handle the risks posed by ambitious renewable targets and uncertainties surrounding the implications of the Energy Market Reform, Clare Duffy, General Manager, ESB International, said in London today.
Uncertainty about the liberalization process of the Turkish natural gas market may hamper investors to commit to realizing large gas-fired power plant projects in Turkey, Robert Selim Hill, researcher at Energy Brainpool said today. "For the near future it will especially be difficult to plan and realize large natural gas power plant projects," he told Gas-to-Power Journal.
TLT-Bancock India said today it will open a new manufacturing facility near Bangalore, in April 2012. The components produced at the facility will be sold to power producers in the growing Indian market. "When production begins in a few months, TLT-Babcock will have fully arrived in support of India's electric power expansion and general growth plans," David Klossner, President of TLT-Babcock said.
Fortum, a Finland utility with power generation assets in the Nordic and Baltic countries, Poland and Russia, is at the brink of commissioning a biomass-fired Combined Heat and Power (CHP) plant in Järvenpää in early 2013. The proposed 130 GWh plant will run on biomass as a replacement for natural gas.
Wartsila, the Finnish producer of lifecycle power solutions for the marine and energy markets, today posted a 15% decrease in net sales to EUR 1,238 million, down from EUR 1,462 in the previous quarter, mainly due to a backlog in power plant deliveries. "After a very strong fourth quarter, we managed to fulfill our order intake target and reached 11.1% profitability. Due mainly to delayed power plant deliveries, our net sales decreased slightly more than expected," Wartsila's president and CEO, Bjorn Rosengren said.
Australia's ERM Power confirmed it has received development approval to build and operate a 500MW gas-fired power plant at Braemar, around 240 kilometres west of Brisbane. "The next stage in the development of the Braemar 4 project is finalising fuel supply and electricity take-off agreements, which will allow us to make a final investment decision on this development," Philip Baker, managing director and CEO at ERM Power said.
In North-West Europe, investments in new gas-fired power plant projects will be in the money post 2018 at the earliest, Thomas Birr, VP corporate development & strategy at RWE Group forecast. "In Turkey and Eastern Europe, where power demand is rising, things are looking better," he said at the Gas-to-Power Europe Forum in Berlin.