Projects & Finance

Golar’s 1.5 GW Sergipe power project in Brazil has received Commercial Operation Date (COD) acceptance which triggers the start of earnings under a 25-year PPA and the associated charter for FSRU Golar Nanook. Combined pre-inflation revenue could amount to over $1.8 billion.

In Italy, GE has completed the installation of a new rotor and a compressor on a 9F.03 gas turbine at Tirreno Power’s 1,200 MW Torrevaldaliga Sud Power Plant near Rome. The modernization project started in late February and works were finished on time and safe amidst the pandemic.

Siemens Gas and Power will supply three cryogenic boil-off gas compressor trains for the Golden Pass LNG export terminal at Sabine Pass, Texas. The contract was awarded by McDermott, Chiyoda and Zachry Group – the EPC contractors who are building the liquefaction plant on behalf of Qatar Petroleum and ExxonMobil.

EthosEnergy has been awarded a five-year, multi-million pound turbine maintenance contract by a major UK North Sea operator for its full fleet of gas turbines. The contract includes the support 37 units across 10 offshore production platforms covering a range of OEM equipment such as Siemens small-scale gas turbines, GE Frame and LM units and Solar gas turbines.

MAN Energy Solutions has assembled two core-components for the world's largest fusion experiment ITER in Cadarache, southern France. The cylinders are central to the cryostat –a 30m high stainless steel, high-vacuum chamber with a volume of 16,000 cbm - which from the exterior of the fusion reactor.

Japanese trading house Itochu has announced the commercial start of the Hickory Run Energy Center, built at a cost of $865 million near Pittsburgh, Pennsylvania. Operated by Tyr Energy, an Itochu subsidiary, the 1,000 MW combined-cycle gas power plant provides electricity to the PJM market.

Technology group Wärtsilä is working on a feasibility study for a Power-to-Gas facility at Vantaa Energy’s waste-to-energy -plant in Finland. The project will produce synthetic biogas using emissions and electricity generated at the waste-to-energy plant, helping Vantaa to exit coal by 2022.

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.

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News in Brief

MAN to maintain power plant in Benin

Oct 23 – PrimeServ, the after-sales brand of MAN Energy Solutions, has signed a service agreement with BWSC for the Maria Gleta power plant near the city of Cotonou, Benin. The 127 MW plant is powered by seven MAN 18V51/60DF engines. The ten-year contract covers the supply of spare parts and the provision of technical services for scheduled maintenance.

Gas saves Virginia over $14bn

Oct 22 – Virginia’s businesses and families saved more than $14.2 billion between 2008 and 2018 thanks to low-cost natural gas and expanded energy infrastructure, according to a new Consumer Energy Alliance (CEA) report. Almost 60% of power generation relies on natural gas and a third of its households use gas for home heating.

Energy storage for LNG-powered vessels

Oct 21 – Louisiana-based Harvey Gulf has asked Wärtsilä to retrofit its energy storage system (ESS) on four LNG-fuelled platform support vessels. Once upgraded in early 2022, all vessels will be of full tri-fuel operation.

Mott McDonald starts construction on ALCP6

Oct 20 – US construction firm Mott McDonald has started building the ALCP6 waste to energy project in Krabi province, southern Thailand. The plant will incinerate 144,000 tonnes per year of municipal solid waste, and the heat obtained will be converted into 6 MW of electricity to be exported to the Thai national grid.

Brace for EU sustainable finance rules

Oct 19 – Sustainable finance practices, drawn up by the European Commission, could create a "bureaucratic monster" that smaller companies and energy investors would find overbearing, the Munich-based Institute for Economic Research (ifo) warned. The regulation should hence prioritise closer scrutiny of large and listed companies.

UK could become net power exporter

Oct 16 – Increased interconnection could provide a route for excess offshore wind power in Britain to be consumed elsewhere in Europe. National Grid Interconnector Register shows up to 16 GW of interconnection could be operational by 2025 and up to 25.4 GW by 2030.

Wärtsilä to deploy GridSolv in US city

Oct 15 – AEP OnSite Partners has contracted Wärtsilä to deploy its GridSolv Quantum energy storage in the city of Martinsville, Virginia. The system includes an UL9540A limiting 2-hour battery firewall and will help lower the city’s energy costs.

Rolls-Royce spends $13.9m in Mankato

Oct 14 – Britain’s engine maker Rolls-Royce has decided to invest nearly $14 million in its Power System business to build a new R&D centre at its MTU manufacturing plant in Mankato, Minnesota, US. The expansion will see 28,000 square foot added to the facility’s existing hall, making room for the production of high-power MTU gas gensets, enhanced product testing and the creation of 20 new manufacturing positions.

Clarke commissions Vitalait power unit in Tunisia

Oct 13 – Clarke Energy and INNIO Jenbacher have completed the commissioning of an onsite power plant of a milk producer in Tunisia. The installation of another Jenbacher gas engine has increased the plant’s output to 4 MW of electricity as well as 1,100 kW of hot water and 800 kW of steam.

Secondary battery market to top $55bn

Oct 12 – Technavio expects the secondary battery market to grow by $55.62 billion through 2024, rising at an 11% rate over the forecast period. Falling costs for lithium-ion batteries as well as growing demand in Asia Pacific allowed the market to grow 2.01% this year, despite adverse effects of the pandemic. Top battery suppliers are Tesla, Clarious, Exide, LG Chem, GS Yuasa and Samsung.

Shift to sustainable tech

Oct 9 – Three quarters of utilities, surveyed by EIT InnoEnergy, are considering adopting sustainable technology over the next 12-18 months. However, over one third of the respondents found it hard to recruit the skills they need.

Generator rentals slow

Oct 8 – The rental market for power generators has slowed down due to the pandemic, with genset rentals from the oil and gas industry forecast to grow by just $153.87 million this year. However, Technavio expects the market will return to a 3% annual growth rate by 2024.

GE upgrades Italian CHP

Oct 7 – GE has completed an axial fuel staging upgrade on its 9E gas turbine at an onsite combined heat and power (CHP) plant at the Milazzo refinery in Sicily. The entire electricity needs of the refinery, over 780 GWh in 2019, will soon be supplied by the upgraded and more flexible gas turbine.

Operating assets ‘from anywhere’

Oct 6 – GE Digital’s latest software gives electric utilities remote and mobile control over their power stations for remote start-up, external monitoring and operational fine-tuning. The goal is to safe cost through autonomous operation from any location.

Chart wins order from New Fortress Energy

Oct 5 – Chart Industries has secured a second leasing order, worth $7.7 million, for ISO containers for LNG applications from New Fortress Energy for a project in the Caribbean. The US equipment maker sees double digit near-term growth in its repair, service and leasing business, notably from growing demand for LNG equipment for infrastructure.

Siemens energises Togo

Oct 2 – Siemens Energy has delivered a SGT-800 gas turbine and other components for the Kékéli Efficient Power plant project. Located in the Togolese capital Lomé, the 65 MW plant will cover almost 40% of country’s expected electricity demand.

Batteries get cheaper

Oct 1 – Cost for battery production is falling rapidly as manufacturers bring large Gigafactories on-line. By 2030, Bloomberg New Energy Finance anticipates battery pack prices to drop to $73 per kilowatt-hour, down from a current volume-weighted average of below $270/kWh.

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