Projects & Finance

Philippines’ largest utility First Gen has received regulatory approval to build a floating LNG import unit to fuel 3.2 Gigawatt (GW) of power gen capacity near Batangas City. Construction will start in the fourth quarter, with the aim of receiving the first LNG cargo in the autumn of 2022.

Rolls-Royce has been selected to deliver 15 medium speed gas gensets of its Bergen Engines brand to power the Iron Bridge Magnetite Project in Western Australia, managed by Formosa Steel. The gensets are based on the new Bergen 20-cylinder B36:45 gas engine.

South Korea’s power plant developer Doosan Heavy Industries has joined forces with five public power companies to build a model combined-cycle power plant, driven by a proprietary gas turbine. Doosan has been striving to develop a turbine since 2013, aimed at Asia’s growing LNG-to-Power market.

Babcock & Wilcox (B&W) has won a $15 million contract to design and supply low-NOx combustion technology and a pulveriser system upgrade for Taiwan Power’s 5,824 MW Taichung Power Plant. To further reduce emissions, some coal-fired power units could be converted natural gas.

Mitsubishi Power and the US utility Entery will work together to limit emissions from electric power generation in Arkansas, Louisiana, New Orleans, Mississippi and Texas. The cooperation will focus on the adoption of hydrogen-capable gas turbine as well as utility-scale battery storage systems.

Singapore-based Keppel Shipyard has been contracted to convert an LNG carrier to a floating storage and regasification unit (FSRU) for use at El Salvador’s first LNG-to-power project. The FRSU will be installed in the second half of 2021, for the power plant to start operating before year-end.

Alberta-based developer Kineticor Resource has selected BPC, a joint venture of Black & Veatch and PCL Industrial Management, to build a 900 MW combined-cycle power station near Edison. The Cascade Power Plant comes at a cost of $1.5 billion and is due operational in 2023.

Drax has handed Worley an early front-end engineering and design (pre-FEED) contract for the first two carbon capture units at its power plant in North Yorkshire. Each unit will capture about 4 million tonnes of CO2 a year, allowing Drax power station to become ‘carbon negative’ by 2030.

Siemens Energy has been selected to supply components for a 150 MW simple-cycle power plant in Saidpur, northern Bangladesh. The peaking power plant is developed by China’s Dongfang Electric International Corp (DEC) on behalf of the Bangladesh Power Development Board (BPDB).

Wärtsilä has signed a tailored 5-year maintenance deal for Electricite du Cambodge’s C7 power plant, located close to Phnom Penh. The order, booked in August, is with SchneiTec which is responsible for the plant’s maintenance.

Western Power Distribution (WPD), network operator for South West, Midlands and South Wales, is adopting digital technologies to make its network more flexible and efficient to better integrate distributed green energy sources. The aim is to lower customers’ energy bills and work towards net-zero emissions.

Mitsubishi Power has shipped the first JAC gas turbine manufactured in America to J-POWER USA Development for its 1,200 megawatt Jackson Generation project in Elwood, Illinois. The M501JAC gas turbine, currently in transit, will be the first such turbine installed in North America.

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News in Brief

Mitsubishi produces methanol in Trinidad

Jan 20 – Mitsubishi Gas Chemical Company has launched commercial operations of a methanol and dimethyl ether plant in Trinidad and Tobago. The plant has an annual production capacity of one million tons of methanol and 20,000 tons of dimethyl ether, which can be used as an alternative fuel for cars and power generation.

First 8-cylinder B36:45 engine delivered

Jan 19 – Rolls-Royce has delivered the first 8-cylinder variant of its Bergen B36:45 gas engine to a tomato producer in Belgium. The medium speed genset is planned for delivery this spring and will drive an onsite power plant that generates 4700 kW electricity and 5520 kW heat. The new engine offers a 20% increase in power per cylinder and will replace an existing Bergen 12-cylinder B35:40 genset.

Moody’s upgrades Enel to Baa1

Jan 18 – Moody’s Investors Service has upgraded Enel’s long-term rating to Baa1, with a stable outlook. The upgrade reflects Enel’s progress in reducing its risk profile, analysts said, pointing at the Italian utilities ongoing investment in networks and renewables, growing geographical diversification and focus on centralised financing.

GE sues Siemens Energy

Jan 15 – General Electric has sued its German rival Siemens Energy over the alleged use of stolen trade secrets to win gas turbine contracts worth several billion dollars. GE told the US district court in Virginia that Siemens received the secret information from a Dominion Energy employee.

Orbital Energy launches Eclipse

Jan 14 – Nasdaq-listed Orbital Energy Group has launched a new subsidiary, Eclipse Foundation, a drilled shaft construction company. The new company specialises in providing services for power transmission and substations, communication tower and a disaster restoration through emergency power.

S’Korean coal and LNG imports slide

Jan 13 – South Korea’s imports of thermal coal and LNG have fallen 12% and 11%, respectively, as the government cracks down on fossil fuel usage to curb air pollution. Customs data shows that coal imports amounted to 10.2 million tons in December, down 1.4 million tons from the same month last year but up from November’s imports of 9.5 million tons.

SMC builds 1.7 GW CCGT in Batangas

Jan 13 – Excellent Energy Resources, part of SMC Global Power Holdings, is building a 1,700 MW combined cycle gas power plant in Barangay Dela Paz and Ilijan in Batangas City with investments of about 67.863 billion Philippine Pesos ($1.41bn). The project is estimated to be completed in 36 to 40 months.

UK’s National Grid issues supply warning

Jan 12 – Natural gas prices in the UK surged as National Grid issued warnings on supply deficit as LNG cargoes are being diverted to North Asia. Prices at the British NBP gas trading hub soared to the equivalent of $8.95 per MMBtu, while the JKM price for North Asian spot LNG cargoes for February 2021 was last at $19.700 per MMBt.

Fortistar invests in hydrogen

Jan 11 – Fortistar, a privately-held fund, has joined an equity investment of up to $157 million in hydrogen producer BayoTech. Cottonwood Technology Funds and the New Mexico State Investment Council also participated in the latest financing round. BayoTech’s systems produce local hydrogen close to the application, serving end users in the industrial gas and petrochemical segment as well as those who use of hydrogen to power fuel cells.

Ashtead appoints new CFO

Jan 5 - Ashtead Technology has appointed a chief financial officer (CFO) and five managers for newly created roles across its international team. The appointments are meant to cement the company’s position in the offshore energy market, including offshore wind and decommissioning of thermal power plants

NFE secures LNG for Puerto Rico, Mexico and Nicaragua

Dec 23 – New Fortress Energy (NFE) has agreed to purchase Henry-Hub-indexed LNG for its integrated gas and power businesses in Puerto Rico, Mexico and Nicaragua. The New York-based project developer said it now has covered 80% of its expected needs throughout Latin America, thus reducing its need for spot purchases and its exposure to changes in the market price for LNG.

China and Korea mandate coal-to-gas switch

Dec 22 – The Chinese government has launched a coal-to-gas boiler switching programme, targeting 7.1 million homes, which makes gas demand more weather-sensitive this winter. Similarly, South Korea mandated the closure of 15 coal-fired plants since the start of December in an effort to reduce air pollution. Analysts expect this will accelerate the drawdown of LNG terminal inventories going into Q1-2021.

GE repowers oil field in Brazil

Dec 21 – GE Power Conversion has been awarded a contract by Sulzer Pumps UK to supply motors for four water injection pumps of a Floating Production Storage and Offloading (FPSO) vessel. The 8,000 kW, two pole motors will run at 3,600 rpm with a limitation of the starting current at 300%, enabling the oil and gas field operator to optimise the generator which supplies electricity on the FPSO.

VELO distributes Sapphire Metal 3D-Printers in the US

Dec 18 – California-based VELO3D has formed a distribution partnership with GoEngineer for Flow pre-print software, Sapphire metal AM printer, and Assure quality assurance and controls. GoEngineer will be VELO’s only distributor in the United States.

Indian electric boats to achieve zero emissions

Dec 17 – Cochin Shipyard, India’s largest shipbuilder, has asked Siemens Energy to equip India’s first fleet of 23 boats with electric propulsion drive train, integrated with batteries and vessel automation. Combining the electric propulsion drive trains, energy storage, and automation systems is expected to significantly reduce fuel consumption.

Terna BESS auction six times oversubscribed

Dec 16 – A pilot auction, held by the Italian TSO Terna, for battery energy storage systems (BESS) to provide reserve grid services has been six times oversubscribed. The auction was held with an expectation that around 230 MW would be on offer, but Terna received 1,327 MW worth of bids and eventually awarded contracts for 249.9 MW.

New £150m link to UK’s Easington terminal

Dec 15 – National Grid has completed a gas pipeline under the River Humber, build in 18 months and at a cost £150 million, as new link to the import terminal at Easington. Following commissioning, the pipeline is now operational and can now transport between 70 to 100 million cubic metres - around a quarter of Britain's gas needs.

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