Projects & Finance

Aggreko has placed the first order for Wärtsilä’s new ‘Modular Block’ power gen solution. Four Modular Blocks, equipped with one Wärtsilä 32 engine each, will be supplied to provide 40 MW of onsite power to Resolute Mining’s Syama gold mine, situtated in a remote off-grid location in Mali.

Competitive Power Ventures (CPV) and Osaka Gas have fast-tracked the start up of the $1 billion CPV Fairview Energy Center near Johnstown, Pennsylvania. CPV said thanks to “outstanding team effort” of construction contractor Kiewit and equipment supplier GE, the 1,050 MW plant is now “fully operational on budget and significantly ahead of schedule.”

MAN Energy Solutions has been delivering ten 20V35/44G gas engines with a combined capacity of over 100 MW to Bolivia. The engines will supply electricity for steel works at the El Mutún iron ore mine, operated by Tenova’s HYL division together with Sinosteel on the border with Brazil.

Two Saudi partners are fast-tracking an integrated LNG regas and 3.6 GW gas combined-cycle power project envisaged to be built at Cox Bazar, Bangladesh. Newly listed Saudi Aramco confirmed it will source and supply the LNG to fuel the CCGT that is being built by Acwa Power.

RUE Vitebskenerg, a Belarusian state utility, has contracted Siemens to deliver the power generation equipment for two new peaking power stations. The new open-cycle gas turbine (OCGT) plants will be dispatched in connection with the existing Lukomlskaya and Novopolotskaya  power plants in northern Belaurs and are due operational by the end of 2021.

Göteborg Energi and Siemens will jointly test new turbines that enables the use of renewables fuels at the Rya combined heat and power (CHP) plant, which is currently powered by natural gas. As a first step, an SGT-800 test turbine was installed at the plant to validate 3D-printed burners that can run on various fossil-free fuels.

Mitsubishi Hitachi Power Systems (MHPS) has completed a shipment of J-Series Air Cooled (JAC) gas turbines to Thailand where they will be used in two combined-cycle gas power stations on the outskirts of Bangkok. The two CCGTs, with a combined output of 5,300 MW, are being developed by Thailand’s largest IPP Gulf Energy Development and Mitsui & Co.

Virginia-based AES Corporation has completed the steam purity run – one of the final commission phases of its Huntington Beach Energy Project (HBEP). With the initial turbine run well underway, AES said it plans to fully start up the unit in late January, or early February 2020.

Bayat Power-1 – Afghanistan’s first gas power project in four decades – has been commissioned, with the first of three Siemens SGT-A45 turbines now fully operational. Once all three turbines are up and running, the plant will generate more than 200 MW of electricity.

B2Gold, a Canadian public gold mining company, has contracted Wärtsilä to design and engineer a 17MW/15MWh energy storage. Wärtsilä's GEMS control system will optimise the hybrid solar power and energy storage unit at the Fekola Mine, situated in a remote region in southwest Mali.

At the latest China International Import Expo (CIIE) in Shanghai, Rolls-Royce Power System has signed five deals for the delivery of more than 500 MTU engines. Contracts were sealed with Cooltech, EPG, SUMEC Machinery & Electric Co., Tellhow and AFAI Southern Shipyard, with first delivery of MTU engines 4000-series due to start later this month.

Edison has committed to invest €370 million to build a combined-cycle power plant at Presenzano, in the southern Italian province of Caserta. The 760 MW unit will be driven by a GT36 H-class gas turbine, developed by Ansaldo Energia, and will reach an energy efficiency of about 63%.

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News in Brief

Zhonghua’s profits halve

April 1 – Hong Kong-listed Zhonghua Gas Holdings has recorded a staggering 46.7% fall in profit, citing a lower margin for LNG supplies and reduced subsidies, although full-year revenue rose by 7.3%. In December, Zhonghua partnered with Shanghai Shenergy to supply LNG in the Yangtze River Delta region, and also has strong business relationships with Tractebel Engineering and Tianjin Jinre Heat-Supply Group.

Endesa donates $28m to fight coronavirus

March 31 – Endesa has created a 25 million euros ($27.8 million) fund to help fight the coronavirus pandemic in Spain. The Spanish utility, subsidiary of Enel, said the fund will be designated for purchases of protective equipment for health-care workers.

 

MAN develops liquid methane terminal in Swedish port

March 30 – OxGas has commissioned MAN Energy Solutions to act as ‘owners engineer’ to develop and build a liquefied methane-based fuels terminal in the Swedish Port of Oxelösund. The terminal will feed both LNG and green methane derived from bio gas to SSAB ’s local steel production, and to re-distribute it via train and trailers to other parts of Sweden for use in the steel industry and decentralized power generation.

American ISOs to delay grid investments

March 27 – North America’s independent system operators (ISO) are considering delaying investments in grid upgrades and enhancement as electricity demand weakens due to industry shutdowns to contain the coronavirus pandemic. PJM Interconnection, the largest U.S. bulk power market which spans 13 Mid-Atlantic and Midwestern states, revised its daily forecast of about 100,000 MW of load but actual demand came in at 95,500 MW.

Wärtsilä starts combustion trials using ammonia

March 26 – The Finish technology group Wärtsilä has initiated combustion trials using ammonia in an effort to reduce emissions. Based on initial results, the tests will be continued on both dual-fuel and spark-ignited gas engines, followed by field tests in collaboration with ship owners from 2022, and potentially also with energy customers.

Xodus sees growth in cable services

March 25 – Xodus Group has stepped up services related to subsea power cables over the last twelve months. The number of new consulting assignments grew by more than 50%, resulting in more than 70 active work streams that are handled by more 30 permanent staff.

Electricity “more indispensible than ever”

March 24 – Disruptions caused by the coronavirus crisis lay bare how much modern societies rely on electricity, according to the International Energy Agency (IAE). Millions of people are mandated to stay home, causing a surge in teleworking, e-commerce and video streaming which pushes up domestic electricity use.

U.S. frackers cut Capex

March 23 – Sharp cuts in capital spending among Appalachian gas producers are now being replicated in other U.S. basis, with Energy Aspects anticipating the deepest impact on production and earnings to take place starting from the second half of 2020. So far, E&P companies just hedged 52% of this year’s expected production even though some Appalachian producers are seen “lock in some pure gas volumes at prices above the curve.”

EV makers face bankrupcy

March 20 – Electric vehicles (EVs) remain particularly exposed to the corona effect of supply-side constraints and demand erosion. Gigafactory facilities are likely to be delayed and fledging EV manufacturers could face bankruptcy, Wood Mackenzie warns. On the flip side, declines in EV sector demand may be gains for the stationary energy storage segment.

Manufacturing rebounds in Asia

March 19 – Asian-dominant supply chains for solar and energy storage are gradually rebounding after contractions in February. Moving forward, Wood Mackenzie expects near-term development activity and local logistics in leading European and North American markets will outweigh lingering supply issues.

Italy’s gas demand plunges

March 18 – Corona-struck Italy has seen demand for natural gas plunge 8% from the previous week, with similar declines likely in other EU countries as national governments impose lockdowns to contain the virus. Industrial demand is “particularly volatile,” while gas generators will bear the brunt of demand loss, Wood Mackenzie says, as a carbon price decline is bolstering thermal coal.

Nexif raises funds for Rayong CHP

March 17 – Nexif Energy, a joint venture between Singapore-based Nexif and Denham Capital, has raised project financing for the Rayong gas-fired cogeneration project in Thailand. The 92 MW plant is being developed project with Ratch Group, based on 25-year power purchase agreement with Electricity Generating Authority of Thailand (EGAT).

ADB provides $10m loan for Afghan IPP

March 16 – The Asian Development Bank (ADB) has agreed to provide $10 million in debt financing for a gas-fired power unit in Mazari Sharif with a capacity of nearly 60 MW. Phase-1 of the Independent Power Project (IPP) will get another $10 million loan from the Leading Asia's Private Sector Infrastructure Fund (LEAP).

IEA models 50% Carbon-Free Generation

March 13 – Analysts at the U.S. Energy Information Administration (EIA) have drawn up the 50% Carbon-Free Generation case - assuming a stark shift in state-level policies. In this event, the U.S. would have 19% more nuclear power generation, 10% more wind power and 17% more solar PV contribution than in its Annual Energy Outlook 2020 (AEO2020) reference case.

E-charging market to top $15bn by 2030

March 12 – By 2030, the U.S. market for energy-optimisation in support of charging electric-vehicles could be worth $15 billion per year, McKinsey finds. The consultancy expects high demand for home-charging appliances as residential power tariffs are comparatively cheap and most charging can happen overnight when off-peak electricity prices are lower.

Oversupply builds up

March 10 – Energy Aspects’ end-March forecast has added on another 100+ billion cubic feet of natural gas supply while demand remains subdued. In the U.S., the seasonal decline in heating degree days nearly halved the natural gas withdrawal rate. Gas-burn in the power sector and residential/commercial demand are forecast to fall by 1.7 billion cubic feet per day (bcf/d) and 4.0 bcf/d, respectively.

Small-scale LNG cuts cost for power plants

March 10 – Decentralized gas power plants in remote locations can source cheaper fuel from small-scale LNG regas terminals than from trucking the super-chilled gas across long distances. “Trucking LNG further inland would entail additional costs as well as logistical challenges,” IEA analysts noted. For example, a 100 MW baseload power plant would require, on average, around 20 daily deliveries from tanker trucks.