Regulation & Policy

The Spanish Congress of Deputies supports the timely introduction of a new cogeneration tariff, with Acogen, Spain's cogeneration association, calling the congress support a "very positive step". Investment into new CHP plants in Spain has come to standstill, following the decision of Spain's government to enact a temporary halt to new feed-in-tariff contracts for renewable energies starting January 2013.

The share of gas-fired power generation in the U.S. energy mix is set to rise as the first carbon pollution standard issued by the U.S. Environmental Protection Agency (EPA) entrenches the current cost advantage for natural gas over coal.

The rulemaking only concerns new generating units that will be built in the future, and does not apply to existing units already operating or units that will start construction over the next 12 months, EPA said today.

The majority of Europe's gas-fired power plants will be unready or unable to use carbon capture and storage (CCS) technology by 2030 without a U-turn in Britain's energy policy, Green Alliance said in a report published late Tuesday. The lobby group warns further delays in CCS will jeopardise the U.K.'s climate goals.

California Public Utilities Commission (CPUC) has approved a resolution on ordering California's three investor-owned utilities (IOUs) - Pacific Gas and Electric, Southern California Edison and San Diego Gas & Electric - to finalise the contract with Calpine Corporation's Sutter Energy Center within the next 30 days.

India's Central Electricity Agency (CEA) has spoken out against the construction of any new gas-fired power plant in the country until 2015-16, as restrained domestic production of natural gas is hampering reliable gas supply for power generation.

Operators of gas-fired plants should be allowed to resell natural gas hubs back to virtual trading hubs as a way of offering demand-side responses on balancing platforms, Eurelectric said in a gas strategy paper today.

Spain's National Energy Commission (CNE) is calling for an increase in electricity prices paid by consumers to curtail Government debts worth €24 billion. The so-called 'tariff-deficit' piled up over the past 10 years as utilities had to sell electricity to end-customers at regulated rates below nominal generation and distribution costs.

German E.ON, Italian Enel, Swedish Vattenfall and Swiss Alpig have launched Afiegm, an energy lobby group, urging the French governments to open France's power generation market and to curtail the dominance of EDF. "The question of competition concerns not only supply but also equally production," Afiegm chairwoman Fleur Thesmar said.

Investment in new gas-fired and nuclear plants, rather than wind power, could save the U.K. £45 billion in meeting its 2050 carbon reduction, AF Consult, a Sweden-headquartered technical consultancy, said in a recent report sponsored by the global accountancy firm KPMG.

The U.S. Clean Heat & Power Association (USCHPA) is backing the Smart Energy Act that set a national goal to double the amount of power generated by combined heat and power systems to 170 GW by 2020. The technical potential for additional Combined Heat and Power (CHP) plants at existing sites in the U.S. is between 130 and 170 GW, plus an additional 10 GW of waste heat recovery, according to USCHPA estimates.

In an effort to end shortages of gas supply to power plants, Nigeria's Petroleum Minister, Diezani Alison-Madueke, has called on energy companies to comply with the country's new gas price regime. The Government is concerned that gas companies are not implementing the new, higher price regime that had been designed to attract investment to Nigeria's domestic gas-to-power sector.

Pöyry Energy Consulting calls for a marked-based alternative to introducing formal capacity payments under the UK Electricity Market Reform (EMR). "Market-traded reserve products combined with imbalance prices could deliver a better outcome to support flexible power generation capacity," James Cox, Principal Consultant at Pöyry Energy Consulting told 'Gas-to-Power Journal'.

Page 72 of 74

News in Brief

First 8-cylinder B36:45 engine delivered

Jan 19 – Rolls-Royce has delivered the first 8-cylinder variant of its Bergen B36:45 gas engine to a tomato producer in Belgium. The medium speed genset is planned for delivery this spring and will drive an onsite power plant that generates 4700 kW electricity and 5520 kW heat. The new engine offers a 20% increase in power per cylinder and will replace an existing Bergen 12-cylinder B35:40 genset.

Moody’s upgrades Enel to Baa1

Jan 18 – Moody’s Investors Service has upgraded Enel’s long-term rating to Baa1, with a stable outlook. The upgrade reflects Enel’s progress in reducing its risk profile, analysts said, pointing at the Italian utilities ongoing investment in networks and renewables, growing geographical diversification and focus on centralised financing.

GE sues Siemens Energy

Jan 15 – General Electric has sued its German rival Siemens Energy over the alleged use of stolen trade secrets to win gas turbine contracts worth several billion dollars. GE told the US district court in Virginia that Siemens received the secret information from a Dominion Energy employee.

Orbital Energy launches Eclipse

Jan 14 – Nasdaq-listed Orbital Energy Group has launched a new subsidiary, Eclipse Foundation, a drilled shaft construction company. The new company specialises in providing services for power transmission and substations, communication tower and a disaster restoration through emergency power.

S’Korean coal and LNG imports slide

Jan 13 – South Korea’s imports of thermal coal and LNG have fallen 12% and 11%, respectively, as the government cracks down on fossil fuel usage to curb air pollution. Customs data shows that coal imports amounted to 10.2 million tons in December, down 1.4 million tons from the same month last year but up from November’s imports of 9.5 million tons.

SMC builds 1.7 GW CCGT in Batangas

Jan 13 – Excellent Energy Resources, part of SMC Global Power Holdings, is building a 1,700 MW combined cycle gas power plant in Barangay Dela Paz and Ilijan in Batangas City with investments of about 67.863 billion Philippine Pesos ($1.41bn). The project is estimated to be completed in 36 to 40 months.

UK’s National Grid issues supply warning

Jan 12 – Natural gas prices in the UK surged as National Grid issued warnings on supply deficit as LNG cargoes are being diverted to North Asia. Prices at the British NBP gas trading hub soared to the equivalent of $8.95 per MMBtu, while the JKM price for North Asian spot LNG cargoes for February 2021 was last at $19.700 per MMBt.

Fortistar invests in hydrogen

Jan 11 – Fortistar, a privately-held fund, has joined an equity investment of up to $157 million in hydrogen producer BayoTech. Cottonwood Technology Funds and the New Mexico State Investment Council also participated in the latest financing round. BayoTech’s systems produce local hydrogen close to the application, serving end users in the industrial gas and petrochemical segment as well as those who use of hydrogen to power fuel cells.

Ashtead appoints new CFO

Jan 5 - Ashtead Technology has appointed a chief financial officer (CFO) and five managers for newly created roles across its international team. The appointments are meant to cement the company’s position in the offshore energy market, including offshore wind and decommissioning of thermal power plants

NFE secures LNG for Puerto Rico, Mexico and Nicaragua

Dec 23 – New Fortress Energy (NFE) has agreed to purchase Henry-Hub-indexed LNG for its integrated gas and power businesses in Puerto Rico, Mexico and Nicaragua. The New York-based project developer said it now has covered 80% of its expected needs throughout Latin America, thus reducing its need for spot purchases and its exposure to changes in the market price for LNG.

China and Korea mandate coal-to-gas switch

Dec 22 – The Chinese government has launched a coal-to-gas boiler switching programme, targeting 7.1 million homes, which makes gas demand more weather-sensitive this winter. Similarly, South Korea mandated the closure of 15 coal-fired plants since the start of December in an effort to reduce air pollution. Analysts expect this will accelerate the drawdown of LNG terminal inventories going into Q1-2021.

GE repowers oil field in Brazil

Dec 21 – GE Power Conversion has been awarded a contract by Sulzer Pumps UK to supply motors for four water injection pumps of a Floating Production Storage and Offloading (FPSO) vessel. The 8,000 kW, two pole motors will run at 3,600 rpm with a limitation of the starting current at 300%, enabling the oil and gas field operator to optimise the generator which supplies electricity on the FPSO.

VELO distributes Sapphire Metal 3D-Printers in the US

Dec 18 – California-based VELO3D has formed a distribution partnership with GoEngineer for Flow pre-print software, Sapphire metal AM printer, and Assure quality assurance and controls. GoEngineer will be VELO’s only distributor in the United States.

Indian electric boats to achieve zero emissions

Dec 17 – Cochin Shipyard, India’s largest shipbuilder, has asked Siemens Energy to equip India’s first fleet of 23 boats with electric propulsion drive train, integrated with batteries and vessel automation. Combining the electric propulsion drive trains, energy storage, and automation systems is expected to significantly reduce fuel consumption.

Terna BESS auction six times oversubscribed

Dec 16 – A pilot auction, held by the Italian TSO Terna, for battery energy storage systems (BESS) to provide reserve grid services has been six times oversubscribed. The auction was held with an expectation that around 230 MW would be on offer, but Terna received 1,327 MW worth of bids and eventually awarded contracts for 249.9 MW.

New £150m link to UK’s Easington terminal

Dec 15 – National Grid has completed a gas pipeline under the River Humber, build in 18 months and at a cost £150 million, as new link to the import terminal at Easington. Following commissioning, the pipeline is now operational and can now transport between 70 to 100 million cubic metres - around a quarter of Britain's gas needs.

US emissions fall 11%

Dec 14 – Energy sector-related emissions in the US are expected to fall 11% this year, largely due economic and behavioural effects the coronavirus pandemic. According to the EIA's December Short-Term Energy Outlook (STEO), emissions in 2020 are forecast fall by 19% for coal, by 13% for petroleum, and by 2% for natural gas.

House ad Jul2020