Projects & Finance

The first Power-to-Gas (P2G) pilot project in South Korea is about to be built under a government scheme, funded by 49 billion Korean won (US$44 million). The P2G project will convert surplus electricity supply from wind or solar power sources into hydrogen or methane gas. It is scheduled to start operating in 2023.

Wärtsilä has stared site work for a 378 MW power plant being supplied under an EPC contract in El Salvador. Ordered by Energía del Pacífico, the facility will be one of Central America’s first LNG-fuelled power plants, with a floating regas terminal being built nearby.

Aspiring to build a 5,700 km gas pipeline from Nigeria to Morocco, Nigerian National Petroleum Corporation (NNPC) has awarded the first phase of a Front End Engineering and Design (FEED) contract to Phenspen. FEED Phase I entails a detailed design of the pipeline system, its route and project economics.

Britain’s energy firm Drax has completed the £702 million acquisition of a 2.6GW portfolio of gas, hydro power and energy storage assets operated by Scottish Power from its parent company Iberdrola. Now, Drax aims to expand the Cruachan pumped storage plant by up to 600 MW and maximise the flexibility of the four CCGTs with a combined capacity of 2 GW.

McDermott, the EPC contractor of Calpine’s York 2 Energy Center Project, expects to achieve substantial project completion in the first quarter of this year. First fire of units 5 & 6 at the 828-MW power plant was achieved in late December, with units running smoothly ever since.

Competitive Power Ventures (CPV), an independent investor in energy assets, has sold a quarter of its shareholding in the 805 MW Towantic Energy Center in Connecticut to the American subsidiary of Osaka Gas. The Japanese utility previously bought stakes in three other CPV gas power plants.

Veolia North America and Arizona Public Service (APS) have selected GE’s Fleet360 total plant solutions to increase performance at power plants in Boston and Arlington. APS expects to garner a 6% higher output and a 2% drop in heat rate will boost flexibility at its Redhawk Power Station (1,060 MW).

Mubadala and Dubai Holding have set up a joint project vehicle to develop the United Arab Emirates’ (UEA) self-proclaimed “most efficient power plant” at Emirates Global Aluminium’s (EGA) smelter in Jebel Ali. The 600 MW power unit and integrated water desalination plant will be built under a 25-year deal worth over 1 billion dirhams ($272m).

TransCanada, the Canadian pipeline network operator, has agreed to sell its Coolidge Generating Station in Arizona, U.S., to a subsidiary of Southwest Generation Operating for US$623 million (C$623m). The Coolidge plant is a 575-MW gas-fired power facility that is underpinned by a long-term power purchase agreement (PPA).

Korea Zinc, a manufacturer in Onsan near Ulsan City, has contracted GE to deploy two flexible 6F.03 gas turbines at its LNG-fuelled combined-cycle power plant. All electricity produced by the 270 MW combined-cycle gas power plant will be used for Korea Zinc’s metal production.

Anglo-Swiss commodity trader Glencore is understood to partner with Limay LNG Power Corp. on realizing a LNG-fuelled power plant in Batan, Luzon Island, with a capacity of 1,100 MW. Glencore could provide project financing and help with LNG procurement, adding to supplies from the Philippines’ depleting Malampaya field.

Mitsui O.S.K. Lines (MOL) has agreed a financing deal for the 1,760 MW Jawa-1 gas power plant and an accompanying floating storage and regasification unit (FSRU). The integrated LNG-to-power project will be built at a cost of $1.8 billion by PT Pertamina, Marubeni and Sojitz and is due operational in December 2021.

Indonesian state-owned energy firm Pertamina, together with Marubeni and Sojitz, has reached financial close for a $1.8 billion integrated LNG regas and power generation project. The 1,760 MW Jawa-1 combined-cycle power plant (CCGT), as well as an adjacent floating storage and regasification unit (FSRU), is slated to start operation in December 2021.

Momentum for GE’s flagship HA gas turbine “continues to be strong,” the manufacturer said when announcing two order wins in the third quarter. The customers are Florida’s Tampa Electric (TECO) and the Taiwanese independent power producer (IPP) Chiahui Corp.

Europes first GE 9EMax gas turbine upgrade has been completed at Sokolovska Uhelna's integrated gasification combined cycle (IGCC) power plant in Vresova, Czech Republic. Following the upgrade, the plant “exceeded expectations on heat rate, power output and unit flexibility,” the operator said without specifying.

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News in Brief

Smart grid market to top $70bn by 2027

April 24 – The global Smart Grid Market is expected to reach around $70 billion, growing at an annual rate of 15.56% in the coming years through to 2027.North America is forecast to see the largest revenue growth, according to ResearchNester, while Europe also shows promising growth in smart grids due to high awareness for decentralized power generation, battery storage and conserving energy.

China eases ban on coal power

April 23 – The Chinese National Energy Administration (NEA) has allowed 11 provinces to resume building coal power plants in a move that lies bare the country’s dependency on thermal coal even after several hundred billion dollars were invested cleaner energy sources, notable wind, solar and natural gas. Areas earmarked by NEA for new coal power plants include Qinghai, Chongqing, Guangxi, Guangdong, Yunnan, Guizhou and Henan.

$500m Birdsboro plant gets powered up

April 17 – Birdsboro Power, a subsidiary of EmberClear of Canada, is in the process of commissioning the $500 million Birdsboro open-cycle gas power plant. Built on a site of the former Amourcast steel foundry, and driven by a GE 7H02 turbine, the new power unit will generate about $500,000 in revenue for the Reading Area Water Authority and another $125,000 city of Reading, Pennsylvania. All electricity will be supplied into PJM Interconnection, the power grid operator in the U.S. Northeast.

Gas now dominant fossil fuel in Europe

April 17 – Rising cost of carbon emissions and closures of coal power stations throughout Europe have led to gas-fired generation overtaking the output of other fossil fuels for the first time. According to EnAppSys figures, gas power plants in the EU produced 117 TWh of electricity in the first quarter of 2019, compared with a combined 110.9 TWh from coal, lignite and gas-to-coal plants.

ABB, Porsche co-develop electric vehicle chargers

April 16 – ABB and Porsche have agreed to develop electric vehicle chargers for Porsche Japan’s new electric vehicles, including Tayan – the carmakers’ first fully electric car due to be launched in 2020. Under the deal, Porsche will install ABB chargers at its public facilities across Japan, creating a network of fast-charging stations for its electric vehicles. The first installation is set to go live in mid-2020.

Power gen from biomass flatlines

April 15 – Increases of U.S. electricity generation from biomass have stopped after a decade of growth. Power produced from biomass totaled 70.6 million megawatthours (MWh) in 2018, or about 2% of total U.S. electricity generation, according to EIA figures. Having grown from 2004 through 2014, and the 2018 output was 2% below its peak generation of 71.7 million MWh.

Aeroderivative GT market to top $3.5bn by 2024

April 12 – The global market for aeroderivative gas turbines is seen grow at a 7% rate to surpass $3.5 billion by 2024. A main growth driver, according to Global Markets Insight, will be the rising adoption of small-scale turbine-driven cogeneration plant and the trend towards decentralized energy supply.

Lumenaza creates regional green power grids

April 11 – Utility-in-a-box software, developed by Lumenaza, creates a regional green power grid by connecting producers and consumers of locally produced wind and solar energy. The system monitors renewable power output, balances supply and demand, and can help organize the billing process. Pilot projects have been implemented with two of Germany’s big utilities, E.ON and EnBW as well as with various smaller players.

MHPS licenses H-25 turbine production to Chinese manufacturer

April 10 – Mitsubishi Hitachi Power Systems (MHPS) has agreed to license production technology for its H-25 series gas turbines to the Chinese manufacturer CSIC Longjiang GH Gas Turbine Co. The agreement will establish a small local supply chain which helps expands MHPS’ share in the Chinese market, the Japan-based company stated. So far, MHPS received five orders for H-25 Series gas turbines, or nine units in total, from Chinese power plant developers.

SIEW 2019 to focus on energy transformation

April 9 – “Accelerating Energy Transformation” will be the theme for the Singapore International Energy Week (SIEW) 2019. This theme has been chosen by the Energy Market Authority (EMA) of Singapore to address mounting challenges in Asia over meeting climate change commitments against a backdrop of continuously rising energy demand.

ENGIE launches 1st mini-grid in Zambia

April 8 – The French utility ENGIE has inaugurated its first PowerCorner – an off-grid renewable energy solution – in the Zambian village of Chitandika. Located in the East of Zambia, Chitandika counts 1500 inhabitants who previously had no access to electricity.

Global gas engine market to reach $4.4 billion by 2020

April 5 – Over the next five years, the global gas turbine market is forecast to grow 11.1% annually in terms of revenue, reaching a market size of $24,100 million by 2024, up from $14,300 million in 2019. Market-leading companies include: GE, Siemens, Ansaldo Energia, MAN Energy Solutions, Mitsubishi Hitachi Power Systems and Shanghai Electric Group.

EDAC, Siemens seek ‘industrial app’ for 3D-printing

April 4 – Siemens is intensifying its cooperation with the EDAG Group, an independent engineering company for the automotive industry, to promote industrial applications of additive manufacturing (AM), also known as 3D printing. The companies’ joint "NextGenerationSpaceframe 2.0" project is on show at the Hannover Messe this week.

ABB electrifies Lodi campus of Milan University

April 3 – The Swiss manufacturer ABB will ensure smarter, safer and more reliable electricity supply for students at the Milan University’s new campus in Lodi. Covering an area of 20,000 square meters, the campus has installed ABB’s UniSec switchgear and main distribution switchboard solution, System pro E power.

Chevron launches $90m Fund VII

April 2 – Chevron Technology Ventures (CTV) has set up Fund VII, a new $90 million fund focused on venture capital investment across the energy industry. Investments target early- to mid-stage companies as well as limited partnership funds with the aim of supporting breakthrough technologies that have the potential to improve Chevron’s oil and gas business performance.

Siemens to implement VW Industrial Cloud

April 1 – The German carmaker Volkswagen has chosen Siemens as integration partner for the VW Industrial Cloud. Based on Siemens’ MindSphere system, the VW Industrial Cloud will link production systems, machinery and equipment of various manufacturers at the 122 Volkswagen manufacturing plants worldwide. The resulting data transparency and analysis is meant to enhance productivity at the sites.

Marubeni, 4R Energy to deploy large refurbished batteries

March 29 – Marubeni Corp and 4R Energy, along with SIGNET EV have achieved a Proof of Concept (PoC) using 4RE’slarge refurbished batteries for the development of the world’s first mass-productional EV charger in Namie-machi, Fukushima-Prefecture. The installation, with an output of more than 50kW, helps the community reduce electricity demand from the central power grid, which saves costs.