Projects & Finance

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.

The European Investment Bank (EIB) is supporting a 216 MW gas-fired power plant project in Cameroon with 29.5 million euro in long-term funding. Kribi will be the first gas-to-power plant in Cameroon.

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.

If the spark spread stays below 10 Euro/MWh at times of peak electricity demand, building new gas-fired plants in Germany does not make economic sense, Torsten Amelung, senior vice president Trading and Origination at Statkraft Markets said today. "The only way out is ramping down capacity simply by shutting down power stations, until peak electricity prices are sufficiently high to sustain operations of the remaining gas-fired plants," he told Gas-to-Power Journal at the sidelines of a conference in Berlin.

Markets in Asia, the Middle East and North America are the "centres of growth" for new projects of gas-fired power plants , Brigitte Urban, VP global marketing, energy solutions at Siemens Energy forecasts. In reaction to the surge in gas-to-power demand in Saudi Arabia, Siemens has started construction of a new gas manufacturing plant in the Eastern Province of Saudi Arabia, she confirmed in Berlin today.

Denmark's Dong Energy has set out the vision of shifting its power generation portfolio to a 85% share in green energies by 2020, including gas-fired plants, by reducing its share of coal-fired plants to 15%. "Throughout the transition period, when coal will leave Dong's power generation portfolio, gas-fired capacity is crucial as it delivers the flexibility required by modern and sustainable energy systems," Anders Eldrup, CEO of Dong Energy said in Berlin today.

Gujarat State Energy Generation (GSEG), a Special Purpose Vehicle (SPV) formed by Gujarat State Petroleum Corporation, has confirmed the imminent start-up of a 360 MW gas-fired unit at the Hazira power plant. "The gas-based power plant at Hazira is ready for commissioning and could start generating electricity any day now", GSEG said.

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News in Brief

JERA on recruiting spree

Feb 26 – Japan’s largest electric utility and LNG buyer JERA is looking to hire 20 administrative and 60 technical staff. Recruitment activities will begin on 1 March 2021.

B&W wins $13m new contracts in North America

Feb 25 – The thermal segment of Babcock & Wilcox has been awarded several energy-related projects in North America, worth approximately $13 million, as the market strengthens and projects continue to restart following delays in 2020 due to the impact of the coronavirus crisis.” We’re seeing customers now moving forward with necessary work that had been previously put on hold. The recent inclement weather also has forced higher loads within the utility sector and we anticipate stronger demand for parts and services going forward,” said B&W Chief Operating Officer Jimmy Morgan.

PIC Group to service 1.1 GW Hummel Power Station

Feb 24 – Atlanta-based PIC Group has been awarded an Operation and Maintenance (O&M) contract for the Hummel Power Station, a 1,124 MW combined-cycle plant operated by LS Power Group. Situated in Shamokin Dam, Pennsylvania, the CCGT is equipped with three SGT6-5000F gas turbines, one SST6-5000 steam turbine, three SGen6-1000A air-cooled generators and one hydrogen-cooled SGen6-2000H generator.

Duke Energy claims natural gas is cheaper than energy storage

Feb 23 – Duke Energy Progress and Duke Energy Carolinas have both indicated in their latest integrated resource plans (IRPs) they view battery storage as potentially more costly than proven gas-fired generating technology. Market observers noted, however, that Duke’s estimates peg the capital costs of a 50 MW/200 MWh energy storage plant at $347 per kWh —far higher than the cost of units that entered commercial service in 2020, as per Lazard data.

EU emission rules could herald end of combustion engine

Feb 22 – Future EU emission rules for cars could mean the abrupt end of combustion engines and put many jobs at risk, the German engineering federation VDMA has warned in a position paper. The use of efficient combustion engines is “still important” – both for vehicles and small generators –VDMA President Karl Haeusgen stressed, especially since these engines can be operated in a climate-neutral manner with synthetic fuels or hydrogen.

Saudi cement producer renews Wärtsilä O&M deal

Feb 19 – The Saudi Arabian cement producer Umm AlQura Cement has signed a five year Operation and Maintenance (O&M) agreement with Wärtsilä for the customer’s captive power plant in Taif City. The 47 MW plant operates with five Wärtsilä 32TS engines. The initial three year maintenance agreement was signed in 2015, and thereafter renewed once.

Gazprom expands Sakhalin–Vladivostok gas pipeline

Feb 18 – The Russian major Gazprom is expanding the Sakhalin – Khabarovsk – Vladivostok gas trunkline at the section between Komsomolsk-on-Amur and Khabarovsk. More than 315 kilometers, or three quarters of its overall length, has been welded to date. Gazprom’s 2021-2025 investment programme will total RUB 5.49 billion ($70 million) – more than three times he money spent in 2016–2020. Planned projects include 14 inter-settlement gas pipelines, 9.3 kilometers of gas pipeline branches, and six gas distribution stations.

Enstor closes sale of Waha gas storage

Feb 17 – Houston-based Enestor Gas has completed the sale of its Waha Gas Storage assets in northwest Texas to WhiteWater Midstream. Waha Gas Storage assets have the capacity, when fully developed, to store approximately 10 Bcf of natural gas and include six underground caverns and permits for five additional caverns.

Technip Energies listed in Paris

Feb 16 – Today, Technip Energy has been listed at Euronext’s regulated market in Paris. CEO Arnaud Pieton said the company’s mission is to “serve the energy transition” through its leading position in LNG, hydrogen and ethylene. As growth areas, he singled out sustainable chemistry and CO2 management.

US renewable energy share to double by 2050

Feb 15 – The U.S. Energy Information Administration (EIA) projects that the share of renewables in the U.S. electricity generation mix will increase from 21% in 2020 to 42% in 2050. Wind and solar generation are responsible for most of that growth, while nuclear and coal-fired generation decrease. The share of gas-fired generation will remain stable even though gas prices remain low at an estimated $3.50 per MMBtu, according to EIA projections.

Nikkiso to build electric-mechanical actuators

Feb 12 – The clean energy arm of Nikkiso Cryogenic Industries has bought the intellectual property to manufacture electric-mechanical actuators (EMA) and control panels. Coupled to a cryogenic pump, the system works without gearbox which reduces the size of these vertical pumps frequently used in the oil and gas industry.

Europe’s hydrogen projects outnumber current plants

Feb 11 – The number of hydrogen projects across Europe is almost double that of operational electrolysers as demand for the clean fuel is rising fast. According to research by DLA Piper and inspirata, there are 192 planned or announced hydrogen projects in Europe compared to 107 currently operational ones.

NTE to develop 5 GW clean energy projects

Feb 10 – Florida-based NTE Energy is working with investment partners to develop 1.2 GW of solar and 3.9 GW of battery energy storage systems (BESS) next to thermal power plants. “By co-locating renewable projects with thermal generation, we can offer customers access to affordable solar power options backed up by reliable natural gas,” said Steve Remen, NTE managing director. The company aims to bring 4 GW of its proposed clean energy projects into commercial operation by 2026.

Oil price bounces back

Feb 9 – The price of crude oil has recovered to pre-pandemic levels, after plunging to an all-time low last year. Brent crude oil prices for the front-month April were last seen trading at nearly $61 per barrel, while West Texas Intermediate (WTI), the benchmark for US oil, has risen above the $58 a barrel mark for the first time in over a year.

Equinor VP named co-chair of OGUK board

Feb 8 – Arne Gürtner, Senior Vice President UK & Ireland Offshore at Equinor has been appointed to co-chair the Oil & Gas UK board, as the sector strive to recover while meeting its net-zero targets for 2021. He will be working with Phil Simons, VP North Sea & Canada, Subsea 7.

Enagás to tap wind power for hydrogen

Feb 5 – The Spanish utilities Enagás and Naturgy are evaluating the potential of producing hydrogen from a 250 MW floating off-shore wind farm and a 100 MW on-shore wind farm in Asturias. The project is hoped to generate more than 1500 jobs during construction and operation, with developers applying for funding under the IPCEI scheme.

Turboden wins contract in the Philippines

Feb 4 – Italy-based Turboden, part of Mitsubishi Heavy Industries, has been awarded a contract by the Philippine utility EDC to supply a 20 MW geothermal power plant at Bacon-Manito, on the island of Luzon. The zero-emissions power unit is scheduled to start operations before the end of 2022, and will help lower the local grid’s dependence on fossil energy source.

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