Projects & Finance

Canada-based Demand Power, a behind-the-meter energy storage company, has secured $71 million (€63.9m) in equity and project finance from a group of investors, led by Star America. The funds will be used to deploy industrial-grade batteries and uninterruptible power supply (UPS) on customer sites, with the first project due onstream by the end of 2020.

Brest Republican Unitary Enterprise of Electricity Industry (Brestenergo) has placed the third order in three month for Siemens turbines. The latest order is for five SGT-800 gas turbines, as well as auxiliary equipment, for a peakload power plant in Beloozersk, Brest region. The 245 MW power unit is due for commissioning in December 2021.

Gemma Power Systems has been awarded two Engineering, Procurement and Construction (EPC) contracts from two U.S. power plant developers. For NTE Connecticut, Gemma will build the 650 MW Killingly Energy Center and the second contract is for a 920 MW gas-fired project in West Virginia.

Mitsubishi Hitachi Power Systems (MHPS) has been contracted to supply two M501JAC power trains to the Intermountain Power Plant (IPP) in Delta, Utah, to enable a fuel switch from coal, to natural gas and to renewable hydrogen. The aim is run the 840 MW plant entirely on hydrogen by 2045.

Guyana Power and Light (GPL) has awarded Wärtsilä an Engineering, Procurement and Construction (EPC) contract for a dual-fuel power plant at the Garden of Eden Generating Complex. The Wärtsilä 34DF engines will initially run on liquid fuel, and on natural gas when that fuel becomes available.

The International Finance Corporation (IFC) has arranged a debt financing package worth €303 million ($346m) to develop and operate the 390 MW combined-cycle gas power plant near Abidjan. The total cost of the Atinkou CCGT project is €404 million, developers disclosed.

Saudi Arabian utility developer ACWA Power has signed a $1.2 billion contract to realize a 1,500 MW power project in Uzbekistan’s Syrdarya region under a Build, Own, Operate, Transfer (BOOT) model. All electricity from the combined-cycle gas plant will be sold to JSC National Electric Grids under a 25-year Power Purchase Agreement (PPA).

The Finish technology group Wärtsilä has signed a 15-year operation and maintenance (O&M) agreement with Energía del Pacífico for a 378 MW power plant in El Salvador. The deal takes effect once the gas-fired plant starts operations at the end of 2021.

Manila-listed First Gen Corp. is fast-tracking a floating storage and regas unit (FSRU) to ensure continuous fuel supply for 3.2 Gigawatt (GW) gas-fired power gen capacity near Batangas City. Construction of the FSRU is slated to start in May with the aim of receiving the first LNG cargo in the autumn of 2022.

General Electric is working towards adding 3 Gigawatt of power generation capacity to the grid in Iraq before peak summer demand sets in. Overhauling Iraq’s war-turn infrastructure, GE repairs and brings back existing units and develops phase-3 of the 1.5 GW Besmaya combined-cycle gas power plant.

Iren Energia has awarded a €180 million contract to Ansaldo Energia to install a 430 MW combined-cycle power unit at the Turbigo Power Station. Once fully operational, the new CCGT unit will increase the installed capacity at the Turbigo site near Milan to 1,280 MW by summer 2022.

Ansaldo Energia is in talks with the Azerbaijani utility JSC Azerenerji to realise the new 1,000 MW Yashma combined-cycle power plant as and EPC turnkey power plant project. In addition, Ansaldo proposes to service two of Azerenerji’s existing gas combined-cycle plants under a 10-year contract.

Page 5 of 203

News in Brief

MHPS expands Browning’s role to Americas CEO

June 5 – Mitsubishi Hitachi Power Systems Americas has appointed Paul F. Browning t to an expanded role as Chief Regional Officer of the Americas and co-Chief Regional Officer of Europe, the Middle East and Africa (EMEA). As CEO of the Americas, Browning will lead two global businesses headquartered in the United States and three regional businesses in North and South America.

Siemens to service Kalamkas gas turbines

June 4 – JSC Mangistaumunaigaz, one of Kazakhstan’s largest oil and gas producers, has contracted Siemens to service two STG-800 gas turbines at a power plant, designed to meet the entire energy needs of the nearby Kalamkas oil and gas field. The nine-year contract covers turbine maintenance and eventual upgrades as well as remote monitoring of operations.

NamPower to invest $575m on grid expansion

June 3 – Namibia’s state-owned utility NamPower is planning to spend $575 million over the next three years in upgrading and extending its power transmission infrastructure. Namibia imports 60% of its total electrical energy requirement, primarily through bilateral contracts from South Africa’s Eskom and to a lesser extent, the Southern Africa Power Pool (SAPP).

UK TSOs call for £900m green gas investment

June 2 – Britain’s five gas network companies – Cadent, National Grid, NGN, SGN and Wales & West Utilities – have urged the Government to unlock over £900 million (€1bn) for new green gas infrastructure. Research by the Energy Networks Association (ENA) shows that if investment into zero-carbon hydrogen infrastructure started today, the UK could save energy bill payers £89 billion (€99.2bn) by 2044 – five years prior to its 2050 net-zero targets.

Exxon, INNIO about to launch gas engine oil

June 1 – ExxonMobil and INNIO have announced the imminent launch of their first co-engineered and co-branded natural gas engine oil. The U.S. oil major and the Austrian engine maker have just extended their global lubricant collaboration agreement for INNIO’s Jenbacher Type 2, 3, 4, 6 and 9 natural gas engines.

BelGAS launches new pressure regulator

May 29 – BelGAS has introduced its new P1098 High-Capacity Pressure Reducing Regulator, a large-volume regulator for natural gas, propane and other fuels. The pilot-operated device has a large-area actuator diaphragm, allowing for fast and accurate response to modulating gas flow conditions. It is adaptable for low to extra-high pressure—up to 400 psi main valve inlet.

GE to sell lightning business

May 28 – GE has signed a definitive agreement to sell its lighting business to Savant Systems, a provider of smart homes. CEO H. Lawrence Culp called the divestment “an important step in the transformation of GE into a more focused industrial company.” The transaction is expected to close in mid-2020.

China’s fuel demand recovers

May 27 – The Chinese government has lifted restrictions on private travel since April which pushed up demand for transport fuels. Gasoline demand has recovered particularly fast and is expected to return to last year’s levels by June 2020. Wood Mackenzie estimates gasoline consumption to reach 3.4 million barrels per day (b/d) in the second quarter, down just a 0.8% year on year. Diesel or gasoil demand is expected to reach 3.4 million b/d in Q2 2020, a 3% decline year-on-year. Overall, China’s oil demand is seen rise a “modest” 13.6 million bpd, or 2.3%, in the second half of 2020.

Wärtsilä to retrofit CHP in Spain

May 26 – The Finish engine maker Wärtsilä has bagged an order to supply and install a 34SG gas-fuelled engine generating set for Rofeica Energia's combined heat and power plant in Barcelona, Spain. The installation of the gas engine will allow Rofeica to switch the CHP from heavy fuel oil to gas-fuelled operation, reducing emissions.

New York body rejects William’s plans for gas pipeline expansion

May 21 – New York’s and New Jersey’s state bodies for environmental conservation have rejected Williams’ plans for the Northeast Supply Enhancement project, designed to transport 400 million cubic feet per day of gas from Pennsylvania to New York. The state bodies had already denied wetland permits in 2019, but Williams pipeline subsidiary Transco filed another application with the U.S. Federal Energy Regulatory Commission (FERC), arguing firm services under the project were agreed with UK’s National Grid for customers in New York City districts of Brooklyn, Queens, Staten Island and Long Island.

UK inflation at 4-year low amid falling energy costs

May 20 – The rate of inflation in the UK has fallen to a four-year low as the pandemic pushed down global oil and fuel prices which translate into lower wholesale power prices. The consumer price index fell to an annual rate of 0.8% in April, down from 1.5% in March, according to the Office for National Statistics.

Deficit grows in German green energy fund

May 19 – German regional grid operator TransnetBW has warned of a growing shortfall in the country’s fund for green energy sources, financed under the so-called renewable energy (EEG) levy. TransnetBW, the TSO in southwest Germany, said “due to the EEG cost allocations defined for 2020, we anticipate there will be a negative year end bank account balance in the high three-digit million euro range for 2020.”

Spanish gas companies ‘resilient’

May 18 – Spain’s regulated gas companies “should prove to be resilient” to external shocks arising from coronavirus containment measures, Standard & Poor’s analysis finds, calculating with an average drop in EBITBA at less than 3% in 2020. A new remuneration framework for 2021-2026, recently enacted by the Spanish government, provides enhanced visibility rated grid operators amid the pandemic.

German electricity prices second highest in EU

May 15 – Taxes and the renewable energy surcharge have pushed up Germany’s household electricity prices to the second highest level in Europe, topped only by prices in Denmark. While Danish households paid 29.2 Euros per 100 kWh on average in the second half of 2019, prices in Germany averaged 28.7 Euros, according to the EU statistics office Eurostat.

Calpine’s Q1 earnings fall

May 14 – Calpine, America’s largest generator of electricity from gas and geothermal, has reported a net income of $128 million for the first quarter of 2020, down from $175 million in the prior year period. Lower commodity margins and unfavourable change in income taxes were partially offset by earnings from hedge positions for the three month ending March 31.

Siemens to supply hybrid plant in the Philippines

May 13 – Berkley Energy has contracted Siemens Energy to build a hybrid power project on the island of Mindoro in the Philippines. The project links 16 MW wind power with battery storage, stabilizing energy supply in a remote location with a weak link to the grid and reducing its dependence on diesel.

U.S. energy emissions fall

May 12 – Energy-related carbon emissions in the United States have fallen more than energy consumption, down 2.8% over the course of last year to 5,130 million metric tons (MMmt). Power sector emissions were down 145 MMmt, due to a switch from coal to gas and renewables. In April 2020, emissions experienced another unprecedented fall in due to Covid-19 lockdowns.