Projects & Finance

Siemens is transporting the first HL-class turbine from its factory in Berlin to SSE’s Keadby-2 power project. With 593 MW capacity, the SGT5-9000HL will first be tested in simple-cycle mode and then expanded into a combined-cycle unit with 840 MW and over 63% baseload efficiency.

German utility Uniper is working with Wärtsilä on a gas-drive power plant for swb Bremen. The flexible unit, build adjacent to a coal-fired plant in Hastedt, will run on nine 31SG gas-drives and generate 105 MW of electricity as well as 93 MW thermal output for district heating.

Stadtwerke Leipzig has contracted MAN Energy Solutions to deliver and install two steam turbines and a generator at the local combined heat and power plant (CHP) in the first quarter of 2021. The upgraded CHP will partially replace the supply of district heating from an ageing coal-fired plant by the end of 2022.

Construction companies in the Middle East are withstanding the negative economic impact of the coronavirus pandemic, with ACWA Power as well as Saudi’s Advanced Petrochemical and SK Gas winning multi-billion EPC contracts. Oman National Engineering and Investment Company (ONEIC), meanwhile, was contracted to build substations.

Lower first quarter revenues have not hindered Entergy Corp. to issue a Request for Proposals (RFP) to build a 1,200 MW combined-cycle gas power plant in Texas, with proposals due in early August. The New Orleans-based utility posted earnings of $119 million in Q1-2020, down from $255m.

GE’s Grid Solution business has energized a dynamic reactive compensator, installed for UK’s National. The static synchronous compensator (STATCOM) delivers up to 975 Mvar, adding inertia to stabilize the grid to support operations of the 1 GW Nemo Link interconnector to Belgium.

South Korea’s Hyosung Group and the German chemical group Linde have agreed to build the world’s largest liquid hydrogen plant at cost of Won 300 billion ($244 million) in Ulsan by 2022. The project is part of South Korean government’s plans to use more hydrogen for transport and power gen.

MAN Energy Solutions, in consortium with Burmeister & Wain Scandinavian Contractor (BWSC), will supply two 18V48/60TS engines to expand the capacity of DPP2 Bemland power plant in Suriname from 84 MW to 126 MW. Project finance for this second upgrade comes from OLIBIS.

U.S. pipeline operator Williams has placed in service Phase II of the Hillabee project, an important Transco expansion that brings more natural gas to Florida’s growing power generation market. The expansion provides firm capacity via Sabal Trail Transmission, allowing for uninterrupted flows from Alabama all the way to Florida.

TC Energy Corp has sold its interests in three Ontario gas-fired power plants to Atura Power, part of Ontario Power Generation, for $2.8 billion. The units include Halton Hills Power Plant (683 MW), Napanee Generating Station (900 MW) and TC Energy’s 50% interest in the Portlands Energy Centre (550 MW).

Wärtsilä is finalising a 70 MW energy storage system project in the California Independent System Operator (CAISO) energy market. The system will allow the grid operator to add renewables and store the surplus energy for later use, once operational in mid-2020.

Kawasaki Heavy Industries has commissioned MAN Energy Solutions to supply two 12V51/60 dual-fuel engines for the Miyako Island power plant, owned and operated by the Okinawa Electric Power. The order prompts the very first installation of dual-fuel engines in Japan.

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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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