Regulation & Policy

Johannes Teyssen, CEO of the European energy giant E.ON, is supporting plans for a CO2 price to be levied on all sectors of the German economy: power generation, transport and housing. “We propose a cross-sector CO2 tax of 30 Euros starting from next year, which could be gradually increased to 35 Euros,” he told German media.

The German Chancellor Angela Merkel has vowed her new Climate Cabinet is seeking ways for the country to reach climate neutrality. Should the ministers find a “sound” way to achieve net-zero greenhouse gas emissions by 2050, Germany would be able to join France and Sweden, in drafting a long-term EU climate strategy, said Merkel at the 10th Petersberg Climate Dialogue in Berlin.

The Nigerian government has announced plans to implement a new gas pricing regime on May 29 in an effort to reduce chronic supply shortfalls and subsequent electric power cuts. Payment issues, and problems with debt collections, have so far made it difficult to enforce domestic gas supply obligations for critical infrastructure such as power stations.

“The path towards a de-carbonised future is unstoppable,” claims David Ledesma, Energy & Strategy Consultant and Senior Research Fellow at the Oxford Institute for Energy Studies (OIES). The industry must, therefore, develop long-term strategies as to what it will do to achieve the European carbon emission targets and set out what additional costs will be incurred and who will pay them.

The French government has decided to put a cap on carbon emissions from its coal-fired power plants starting from 2022. The measure is meant to ensure that “they are forced out of the market,” energy minister Francois de Rugy said when announcing the new draft law.

Iceland, Liechtenstein and Norway – the European Free Trade Association (EFTA) states – will be able to auction their emission allowances on the common EU Emission Trading System (EU-ETS) starting from June. The European Energy Exchange (EEX) said it is about to publish an auction calendar that includes the EFTA states volumes.

The UK Shale Gas Commissioner Natascha Engel has resigned after just six months in office, stating she quit over “ridiculously low” tremor limits which effectively prevent fracking. Under current law, the fracking process must be halted every time a 0.5 magnitude tremor occurs. Opposing these stringent rules, Ms Engel said this cautious approach had created a ‘de-facto ban on fracking’.

The UK Government has been urged by the House of Commons Business, Energy and Industrial Strategy (BEIS) Committee that it needs to do more, and act quicker, on vital clean energy technology such as carbon capture and storage (CCS). The Committee calls for firm targets for storing CO₂, and to deploy CCS sooner and in more places than government’s current plan.

South Korean Ministry of Trade, Industry and Energy (MOTIE) has released a briefing note, detailing the nation’s ambition to move away from coal and towards renewable energy. If realized, these policies are expected to significantly reduce Korea’s coal imports from Australia. Analysts see significant implications for KEPCO’s Bylong Coal mine proposal.

“Enormous efforts” still have to be made if Germany wants to reach its climate and energy targets in the transport and buildings sectors. Government calculations show that renewables will cover more than their target share but energy use in transport keeps growing and is likely to exceed 2005 levels next year and in 2030.

The U.S. Environmental Protection Agency (EPA) has proposed to expand the reach of National Emission Standards for Hazardous Air Pollutants (NESHAP) for stationary combustion turbines. Lifting a 15-year stay on NESHAP standards, the environmental watchdog is now working on a long overdue residual risk and technology review (RTR). New rules will impact lean pre-mix and diffusion flame gas combustion turbines.

Lawmakers in the U.S. state of Colorado are debating a bill that proposes the Colorado Public Utilities Commission (PUC) should consider the ‘social cost of carbon emissions’ before issuing permits for new fossil power plants. The concept seeks to put a price on harms caused by emissions and, if enacted, the new carbon tax would be $46/ton of CO2 emitted, starting from 2020.

Page 11 of 75

News in Brief

Enel’s Q1 investment up 8.8%

May 7 – Italy’s state-dominated utility Enel has stepped up investment in renewables and power transmission grids in the first quarter by 8.8% to €2,035 million in a further shift to green energy. Revenues fell by -14.4% to €17,107 million over the same period, largely due to losses in thermal generation and trading activities in Italy and Spain as well as lower volumes of electricity sold into the Spanish end-user market.

Germany advances Net Zero target to 2045

May 6 – The German government has pulled forward the date for Net Zero emissions to 2045 in a move designed to accelerate and intensify efforts to reduce emissions from the transport and power sector. The new target is to curb emissions by 65% by 2030 (up from the previous 55% goal) and reach a 88% reduction by 2040, followed by Net Zero five years later.

Cummins Q1 revenues up 22%

May 5 – Cummins today posed a 22% rise in first quarter revenues to $6.1 billion. Sales in North America increased 7% while international revenues surged 45% largely due to strong new product sales in China and India.  Based on latest developments, Cummins raised its full year 2021 revenue guidance to 20-24%, a considerable rise from previous 8 - 12% forecasts.

Actis vows to help Egypt divest Siemens-built CCGT

May 4 – Egypt’s sovereign wealth fund is cooperating with the private equity firm Actis to sell a 25-year concession to operate three 4.8 GW combined-cycle power plants built by Siemens under a €6 billion contract. The three CCGTs are owned by the Egyptian Electricity Holding, and Actis CEO Ayman Soliman promised to help selling one of the three plants.

RIX launches mobile hydrogen system

April 30 – California-based RIX Industries has launched an industry-first mobile hydrogen generation unit, part of its M2H2-Series of scalable Methanol-to-Hydrogen systems. Able to generate hydrogen onboard and on demand, the system is applicable for ships and remote small-scale production of the green fuel with the aim of replacing diesel for power generation. The M2H2 systems, combined with fuel cells, can produce electricity without any NOx, SOx, or particulate matter and Net Zero CO2 emission with renewable methanol.

US gas future hit 7-year high

April 28 – US natural gas futures have increased over 2% to a seven-week high as LNG exports go from strength to strength, while domestic production eased off slightly. Moreover, a return of colder-than-average weather has pushed up gas demand for heating significantly so that utilities had to withdraw gas from storage, which is rather unusual in April.

Zhongyu Gas bucks the trend

April 27 – Zhongyu Gas, a pioneer in the Chinese gas industry, has achieved remarkable growth during the pandemic. The Hong-Kong headquartered TSO recorded a turnover of approximately HK $8,544 million in 2020, up 4.9% year-on year, while profit attributable to owners of the group was HK $1,057 million, a staggering 145.7%. At the end of 2020, the turnover of Zhongyu’s value-added gas services segment recorded HK $636 million, a year-on-year increase of 54.2%. To date, Zhongyu Gas has 18,777 industrial customers and 3.96 million residential users.

Germany agrees higher renewable goals for 2022

April 26 – The German parliament has voted in favour of higher tender volumes for next year’s wind and solar PV installations. However, parliamentarians did not yet agree on a new renewable target for 2030, even though this has become necessary after the EU raises its overall emission reduction target to 55%.

Rolls-Royce to deliver 16V 8000 engines to Taiwan

April 23 – British engineering giant Rolls-Royce has delivered the first 16-cylinder engines of the MTU Series 8000 to a customer in Taiwan. The shipyard CSBC will install the two engines, capable to deliver 7,280 kilowatts of power each, in new patrol vessels for the Taiwanese Coast Guard. The 16V engines‘ „big brother“ - 20V 8000 has been the best-selling engine in its power class since its introduction around 20 years ago, Rolls-Royce noted.

Rolls-Royce to deliver 16V 8000 engines to Taiwan

April 23 – British engineering giant Rolls-Royce has delivered the first 16-cylinder engines of the MTU Series 8000 to a customer in Taiwan. The shipyard CSBC will install the two engines, capable to deliver 7,280 kilowatts of power each, in new patrol vessels for the Taiwanese Coast Guard. The 16V engines‘ „big brother“ - 20V 8000 has been the best-selling engine in its power class since its introduction around 20 years ago, Rolls-Royce noted.

GE to equip Verbund’s pump storage power plant

April 22 – GE Power Conversion has been selected to equip Verbund’s new fully-fed pump storage power plant  Reißeck II+ in Kärnten, Austria. For the new 45 MW unit, GE will supply three MV7616 converters which are water cooled fully fed converters with an electrical voltage of 6.6kV each. In the wider Kärnten area, Verbund operates a total of 1,460 MW of hydropower plants that are often used for pump-water energy storage.

Fluxys takes stake in Brazilian TSO

April 21 – Belgian gas company Fluxyis, the operator of the Zeebrugge LNG import terminal and stakeholder in Dunkirk LNG and the TAP pipeline, has bought a minority stake in a Brazilian gas transmission system operator. The deal is for a stake in Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG), the owner and operator of a 2,600-kilometres pipeline system that links the southern part of Brazil with neighbouring Bolivia. Fluxyis said the equity transfer was made via the US investment fund, EIG Global Energy Partners.

MHI launches 90MPa hydrogen booster pump

April 20 – Mitsubishi Heavy Industries (MHI) has developed an ultra-high pressure liquid hydrogen booster pump for hydrogen fuelling stations. With 90 megapascal (MPa), the new unit achieves considerably higher pressure than the earlier 40 MPa unit. It is located at MHI’s research & innovation center in Nagasaki District, Japan.

New EU target may force Germany to achieve 68% emissions cut

April 19 – European Union leaders’ decision to raise the bloc’s 2030 target for cutting emissions by “at least 55%” means that Germany needs to step up its efforts and may have to cut emissions by 62% to 68% over 1990 levels, researchers say. Policymakers in Berlin initially aimed for a 55% reduction by 2030 but this is now no longer enough to comply with stricter rules.

Trafigura co-sponsors MAN’s ammonia engine

April 16 – Trafigura, a global commodity trading house, has agreed to co-sponsor the development of MAN Energy Solutions ammonia-fuelled engine for maritime vessels. The ammonia engine is expected to be commercially available for large-scale ocean-going ships by 2024, followed by a retrofit package for existing maritime vessels by 2025. In the future, ammonia-fuelled engine are also meant to be used for power generation.

Tula dDSF helps curb NOx emissions by 74%

April 15 – Tula Technologies, a leader in propulsion technology, and Cummins have showcased the results of a study on the effectiveness of Tula’s diesel Dynamic Skip Fire (dDSF) in reducing nitrogen oxides (NOx) by 74% and carbon dioxide emissions by 5% on a Cummins X15 HD Efficiency Series diesel engine. In comparison with current engine technologies and modifications to the thermal management techniques, use of the dDSF system saved 20% in fuel and related costs.

Marubeni starts EPC works for Rabigh IPP

April 14 – Japan’s Marubeni Corp has been granted limited-recourse financing for the 300 MW Rabigh solar IPP project in Saudi Arabia’s Makkah Province. The loan was granted by Mizuho Bank, Al Rajhi Banking and Investment and Japan’s Bank for International Cooperation. EPC work on the project is scheduled to start in early May. All electricity from the Rabigh IPP will be sold to the Saudi Power Procurement Company (SPPC) for 25 years starting with the plant’s commissioning.

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