Projects & Finance

Siemens has won its fifth order for a South Korean buyer to deliver H-class turbine technology for the 415-MW combined-cycle power plant Daegu Innovation City, located about 240 km south-east of the capital Seoul. Commissioning is scheduled for late 2014.

Mitsubishi Heavy Industries (MHI) effective October 1st has launched a new company in Singapore, named Mitsubishi Heavy Industries Engineering & Services Private Ltd. (MIES). The new entity, capitalized at 15 million Singapore dollars (SGD), integrates the business of 3 local affiliated companies including Mitsubishi Power Systems (Asia Pacific) Private Ltd.

Carrington Power Limited, owned by ESB, has reached Financial Close with a syndicate of international banks for a combined cycle gas turbine (CCGT) power plant just outside Manchester.

Alstom Thermal Power, in consortium with Duro Felguera, has signed a €640 million contract for construction and equipment supply and service for the projected 880-MW Carrington power plant project near Manchester.

ESB and 15% shareholder Carlton Power is getting close to finalise the financing for the 910-MW Carrington plant.

ESB has reportedly already signed a first deal for a £450m of senior debt, split between a 10 year and a 17 year SERV covered tranche backed by an ESB EI toll with a liability cap on termination.

GE has won deals worth nearly $1.2 billion for selling 19 gas turbines for projects in the U.S., Saudi Arabia and Japan and 13 turbine of the 7F5-series and six of the new 7F 7-series to unnamed offtakers.

At least 10 GW of secured available generation capacity would be needed in Germany to backup renewables, however investment in combined-cycle gas turbine (CCGTs) power plants is "highly problematic" as profit margins are low, or even negative at times, and available financing remains restrained, says Reinhold Rümler, senior advisory practise at PricewaterhouseCoopers (PwC), Germany.

Alstom has entered a 12-year long-term service agreement (LTSA) with Sembcorp Cogen Pte for its "Sembcorp Cogen Power Plant" in the Sakra district of Jurong Island in Singapore.

RWE npower has officially opened the fifth and final unit at the 2,000-megawatt Pembroke combined cycle gas turbine (CCGT) following investment of £1bn by operator RWE to build one of Europe's largest and most efficient power plants.

Siemens has won a $300 million order for the turnkey supply of the Panda Sherman Power Project in Sherman, Texas, in consortium with Bechtel. Construction works are scheduled to be completed by the end of 2014.

Progress Energy Carolinas, a subsidiary of Duke Energy, has retired the coal-fired H.F. Lee power plant on September 15 as part of the utility's fleet modernisation programme. The gap in power supply will be filled by a new 920-MW gas-fired plant, scheduled to start commercial operations in early 2013.

The First Vice President of the European Bank for Reconstruction and Development (EBRD), Varel Freeman, has completed a visit to Jordan to consider a $100 million investment in a power plant near Amman to help increase the electricity supply in the Arab country.

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News in Brief

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.

Central Hudson links solar farms to VPP

July 9 – Central Hudson Gas & Electric Corp has established its distributed generation program within the broader context of New York State’s energy plan. Together with Sensus and their Remote Telemetry Module (RTM-III), the Central Hudson will monitor decentralized solar PV backed up by flexible gas gensets.

Siemens and GREEN Solar turn German town CO2-free

July 8 – GREEN Solar and Siemens Energy are jointly developing a concept for making Herzogenrath CO2-free. The plan is to provide an energy-efficient and economical combination of solar power plants, wind turbines, batteries, CHP and combined cycle power plants, as well as heat and hydrogen storage. The hybrid system will be built on the grounds of Nivelsteiner Sandwerke and will be large enough to cover the city’s entire energy demand with zero CO2 emissions by 2030.

Denmark paves the way for Nord Stream 2

July 7– Denmark on late Monday gave the Nord Stream 2 consortium permission to utilize pipe-laying vessels with anchors in Danish waters, paving the way for the Gazprom-led consortium to complete the interconnector. Construction of the 1,230-kilometre pipeline is nearly complete, except for a final stretch of about 120-kilometers in Danish waters. The project was halted in December when the Swiss-Dutch pipe-laying company Allseas suspended works over threats of U.S. sanctions.

EPRI tests early warning system

July 6– The Electric Power Research Institute (EPRI) is conducting trial tests with multiple utilities across the United States of an early warning system. It can detect an off-gassing event as a precursor to thermal runaway up to 30 minutes prior to a cascading failure. This gives plant operators time to mitigate the problem or shut down the system.

KKR buys stake in First Gen

July 3 – Valorous Asia Holdings, owned by KKR investment funds, has bought a 11.9% stake in First Gen through a voluntary tender offer. First Gen, one of the Philippines’ largest independent power producers with 3,492 MW installed capacity, is owned by First Philippine Holdings which is controlled by the Lopez family. KKR’s acquisition of the First Gen stake is worth nearly $192.3 million.

Gazprom’s ‘BBB’ rating affirmed

July 2 – S&P Global Ratings, Moody's Investors Service and Fitch Ratings have affirmed Gazprom's long-term credit ratings as part of their annual reviews. The ‘BBB’ ratings for Gazprom from S&P and Fitch are in line with the sovereign credit rating of the Russian Federation, while Moody's ‘Baa2’ rating is a notch higher.

MHIEC to refurbish WtE plant in Kushiro

July 1 – Mitsubishi Heavy Industries Environmental & Chemical Engineering Co (MHIEC) has received an order from the Kushiro Wide-Area Federation to repair and improve the core equipment at the local Waste-to-Energy plant in Takayama. The WtE plant has a capacity of 240 tonnes per day (tpd). Renovation will increase the energy efficiency of the fluidized bed type gasification and ash melting furnace facility, reducing emissions by around 15% annually. Works are due completed in September 2023.

Nigeria: Only two of six power projects on target

June 30 – Nigeria’s Bureau of Public Enterprises has disclosed that only two out of six privatized power plants were delivered on target. Only Transcorp Power Ltd and Geregu Power Ltd out of the six privatised electricity generation companies (GENCOs) were said to have met their performance targets since taking over.

German investors prefer solar over wind

June 29 – Energy infrastructure investors are keen to build solar power projects in Germany, but shun wind parks. In the latest solar power auction, investors offered to build almost 450 MW of capacity – more than four times the 96 MW of volume on offer– with the average successful bid at 5.27 cents per kilowatt-hour (ct/kWh). The wind auction, in contrast, was undersubscribed: The German network agency  (BNetzA) tendered around 826 MW, but successful bids only totalled 464 MW, at an average price of 6.14 ct/KWh.

MAN ventures into synthetic fuels

June 26 – MAN Energy Solutions has entered the hydrogen economy with the recent pro rata acquisition of H-TEC SYSTEMS, an electrolysis tech firm. The German OEM also committed itself to upgrading its gas turbines to run on 100% hydrogen by 2030.

Varegro starts using Cummins gas genset

June 25 – Belgian-based horticultural company Varegro, has started to use a Cummins HSK78G gas generator to power its greenhouses in Oostrozebeke, West Flanders. Varegro said it selected the Cummins HSK78G genset to produce combined heat and power (CHP) on its premises at a competitive cost for use in energy-intensive greenhouse facilities.

GE names Deloitte as independent auditor

June 24 – GE’s audit committee has selected Deloitte as the company’s independent auditor for the 2021 fiscal year, replacing KPMG. The selection of Deloitte concludes GE’s latest audit tender process.

Northern German states push for hydrogen pilot cluster

June 23 – Northern German states are pushing for greater hydrogen use with a pilot project cluster. Some 12 large demonstration plants for the production and use of green hydrogen are meant to be realised in Hamburg, Schleswig-Holstein and Mecklenburg-Western Pomerania. The aim is to demonstrate how 75% of CO2 emissions can be saved in the region by 2035.

Wärtsilä to design and equip battery-powered ferries

June 22– The Finish engine maker Wärtsilä has been awarded a contract to design and equip two new zero-emissions ferries on behalf of the Norwegian operator Boreal Sjö. For each ferry Wärtsilä will supply the thruster motors, batteries, onboard and shore-based battery charging equipment, the back-up generators, and various electrical systems. The equipment is scheduled for delivery to the yard in early 2021 for the ships to start commercial operations in autumn 2021.

Subsidy cut slashes Chinese wind turbine margins

June 19 – China’s wind turbine original equipment manufacturers (OEMs) could have their gross profit margins halved due to subsidy cuts, Wood Mackenzie forecasts. Commissioned onshore wind power capacity is expected to drop by more than 16% to 19 gigawatts (GW) from 2020 to 2021 as government subsidies were terminated. This could also lead to a 27% drop in turbine prices over the next five years, slashing OEMs’ gross profit margins by half.

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