Projects & Finance

The UK Planning Inspectorate has granted permission to Sembcorp Utilities, part of the Singapore-based energy infrastructure developer Sembcorp Industries, to build a 1,700 MW combined-cycle gas turbine power station at Wilton in Teeside, northeast England.

General Electric’s energy grid solutions business has been awarded two contracts from the Governments of Benin and Cote d’Ivoire to upgrade the distribution grid and improve the power capacity of substations to reduce energy losses. Electrification rates lie below 45% in many countries in Sub-Saharan Africa, making grid-development a key issue energy security of households and businesses.

Entergy Corp.’s affiliated utilities in Louisiana, Arkansas, Texas and Mississippi are in the final stages of building and about to acquire a total of 4 GW gas-fired generation capacity by the end of 2020, the utility said in its Integrated Resources Report. The first new CCGT to start operating will be the 980 MW St. Charles Power Station in Montz, slated for commissioning this summer.

The International Finance Corporation (IFC), a multilateral development agency and part of the World Bank Group, has said it provided a 15-year loan over $228 million to fund LNG-to Power project in Porto do Açu, Brazil. GNA also received BRL1.76 billion ($457 million) in financing from the development banks of Brazil and Germany, BNDES and KfW Ipex-Bank.

Mitsubishi Hitachi Power Systems (MHPS), in consortium with Elsewedy Electric, has won two major orders from Sharjah Electricity & Water Authority (SEWA): a $550 million EPC contract to expand the 2,850 MW Al-Layyah power plant as well as a turnkey construction contract for 1,026.3 MW combined-cycle gas power plant, due to start up in mid-2021.

ARGE Netz, a German green energy provider, is cooperating with MAN Energy Solution and the Swedish utility Vattenfall to realize the first industrial-scale Power-to-Gas project in Brunsbüttel, northern Germany. Called HySynGas, the project will turn renewable energy from nearby wind parks into hydrogen and syngas, usable as a vehicle fuel or for power generation.

Gás Natural Açu (GNA) has selected Siemens for the turnkey construction of the ‘GNA 1’ integrated LNG-to-Power project (1.3 GW), situated at Port of Açu northeast of Rio de Janeiro, Brazil. There is substantial scope for expansion, Siemens said, as developers already won licences to implement a second CCGT unit, ‘GNA 2’, which will bring the overall capacity to 3 GW.

Emirates Global Aluminum (EGA) and Siemens have entered the first power services agreement for an H-class gas turbine in the United Arab Emirates (UAE). The AED1 billion ($272 million) power unit is being realized by a joint venture between Mubadala and Dubai Holding adjacent the smelter of EGA, which pledge to buy all electricity from the plant for 25 years.

Jordan’s National Electric Power Company (NEPCO) has put its Zarqa combined-cycle power plant (485 MW) into full commercial operation. The CCGT, realized as an independent power project (IPP) by ACWA Power, reaches up to 51% combined-cycle efficiency.

Mitsubishi Heavy Industries (MHI) has signed an agreement to deliver equipment for Eni's and ExxonMobil’s Rovuma LNG export joint venture in Mozambique. Subject to FID on the project, Mitsubishi Heavy Industries Compressor Corp (MCO) will supply the main liquefaction compressors and Mitsubishi Hitachi Power Systems (MHPS) will provide dual-shaft, H-100 gas turbines (120 MW) as mechanical drivers.

GE has helped China Power Hub Generation Company’s (CPHGC) to grid-synchronize two steam turbines at a 1,320 MW power plant in Pakistan in only 27 months after notice to proceed. The plant is a joint-venture project between China Power International Holding (CPIH) and Pakistan’s Hub Power Company (HUBCO).

INNIO, a carve-out from GE following Advent International’s takeover of GE’s Distributed Power, won an order to supply six Jenbacher gas engines for the LEMENE microgrid project in Finland. LEMENE will be the largest energy self-sufficient business district, using renewable energy and J416 and J420 gas engines for backup. The entire system is due commissioned by summer 2019.

Siemens has inaugurated Qatar’s second largest power station – the 2.5 GW Umm Al Houl combined-cycle gas turbine (CCGT) plant. First fire at the plant took place in April 2017 with first power delivered in August 2017, and combined-cycle running began in May 2018.

Asian Development Bank (ADB) and the International Finance Corporation (IFC) have entered the first-ever cofinancing of an infrastructure project in Indonesia by granting loans of $70 million and $50 million, respectively, for a 275-MW combined-cycle gas turbine power project in Riau, central Sumatra. Another $82 million will come from the commercial lenders Sumitomo Mitsui Banking and MUFG Bank.

NGN Group’s Star of Bosphorus data center in Istanbul, Turkey – the nation’s first carrier-neutral and Tier-III certified data center – is based on a ABB-designed and built power feeding and distribution infrastructure. The heart of the center forms ABB’s System pro E power main distribution switchboard.

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News in Brief

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.

Cost for decarbonizing industry tops $21tr

Aug 16 – Total costs to fully decarbonize the four most polluting industries – cement, steel, ammonia and ethylene – are estimated to amount to $21 trillion between today and 2050. McKinsey said this could be lowered to about $11 trillion if zero-carbon electricity prices come down further compared to fossil fuel prices. In this event, industry could switch to using electricity for heating processes.

Co-firing Braskem plant with hydrogen

Aug 15 – Siemens is making fossil energy greener at the Braskem onsite power plant in Brazil. In this modernization project two SGT-600 gas turbines are co-fired up to 60% with hydrogen, enhancing efficiency for the production process of the adjacent the petrochemical complex.

Canada's CO2 tax to hit CCGTs

Aug 5 – Change in Canada’s carbon emissions tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could significantly lower the profitability of gas generation and could prompt SaskPower reconsider its planned Moose Jaw gas power station.

GE CFO steps down

Aug 2 – Jamie S. Miller, General Electric’s chief financial officer, has decided to quit after two years in the job and 11 years with the company. Having overseen GE’s fiscal activities during a period of intense restructuring, Miller will remain in office while the GE board is looking for a successor.

Siemens HR boss quits

Aug 1 – Janina Kugel, Siemens chief HR officer, is leaving the company amid an apparently scattered working relationship and stark personal differences with CEO Joe Kaeser. Her contract will expire by mutual agreement on January 31, 2020.

ABB standardizes eBus chargers

July 31 – Zurich-based ABB, a member of the ASSURED consortium, is working on standardizing the specifications for automatic charging of heavy vehicles. The aim is to drive down the total cost of ownership for electric fleet operators, helping increase adoption of eBuses and eTrucks. Conformance and interoperability tests will be carried out in Q4-2019.

U.S. Senate helps fund EV charging stations

July 30 – The need for expanded electric vehicle charging infrastructure is greater than expected given that there had been over 1.75 million electric vehicles (EV) in North America at the end of 2018, a nearly 60% increase from the previous year. To help fund additional charging stations, among other things, the U.S. Senate approved the $287 billion America’s Transportation Infrastructure Act (ATIA).

PNOC, Lloyds to develop merchant LNG-to-Power projects

July 29 – Philippine National Oil Co. (PNOC) has signed a Memorandum of Understanding (MoU) with Lloyds Energy to develop a 1,200 MW LNG-fuelled power plant in partnership with Mitsubishi. Dubai-based Lloyds Energy is looking at ways to develop integrated LNG import facilities and gas power plants on a merchant basis in Bataan and Batangas provinces.

Macquarie finances CCGT in Mexico

July 26 – Macquarie Capital has chosen Credit Agricole, Natixis and SMBC to co-finance a $380 million combined-cycle gas power plant. The 560 MW plant is designated to be built in San Louis Potosi, a city in central Mexico.

Naturgy cashes in on gas network

July 25 – Spanish gas utility Naturgy has posted a 7% rise in core earnings for the first half of the year due to strong gains from its gas network business that helped offset falling revenues from power generation and slimmer LNG margins.

French court rejects appeal against Total CCGT

July 24 – Judges at an appeal court in Nantes have thrown out an appeal by environmentalist against Total’s planned Landivisiau combined-cycle gas power plant in Brittany. The 440 MW project, initiated by Direct Energy which was since acquired by Total, is over two years behind schedule. The French grid operator RTE has singled out the Landivisiau CCGT as “critical” in guaranteeing supply security in winter 2020/21 due to the planned shutdown of four coal power plants.

U.S. gas production falls in wake of ‘Barry’

July 23 – Shut-ins related to Hurricane Barry have scaled back U.S. gas production by 1.6 billion cubic feet per day, compared to last week, while power sector gas demand rose by just over 2.0 bcf/d. Consequently, there is significantly less gas available for storage so the injection rate has halved, according to Energy Aspects figures.

Blackout after fire at Madison substation

July 22 – Electricity is gradually being restored at Madison, Wisconsin, after 13,000 people experience a blackout following an explosion at a substation near Madison Gas & Electric’s 100 MW gas-fired Blount Generating Station. No injuries were reported.

Fuel switch could abate 1.2bn tons of CO2

July 19 – Some 1.2 billion tonnes of CO2 could be abated by switching to gas using existing infrastructure, if prices and regulation are supportive. According to the International Energy Agency (IEA), this would be enough to bring global CO2 emissions back down to where they were in 2013.

IEA launches methane tracker

July 18 – A new ‘methane tracker’, launched by the International Energy Agency (IEA), provides up-to-date estimates of current oil and gas methane emissions by drawing on the best available data. Analysts stressed methane emissions could be reduced by nearly half at no net cost.

Canada’s CO2 tax also affects gas power

July 17 – Change in Canada’s carbon tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could cause SaskPower to reconsider its planned upcoming Moose Jaw gas power station.