Daily News

Carbon capture, utilization and storage (CCUS) represents a massive untapped opportunity, according to the International Energy Agency (IEA). Over 450 million tons of carbon emissions could be captured for use or storage each year with an incentive equivalent to less than $40 per tonne of CO2.

Petra Nova, a 654 MW power station near Houston, is one of only two operating generators with carbon capture and storage (CCS) in the world. The other one is the 110 MW Boundary Dam plant in Saskatchewan, Canada. The CCS system deployed at Petra Nova captures about 90% of CO2 emitted from the flue gas slipstream, or about 33% of the total emissions from Unit 8.

French energy major Total seeks to limit its exposure to commodity cycles by integrating its activities across the supply chain. “We start our integration quite high upstream on the gas chain and that leads all the way to electricity, considering that 60% of all gas is used to generate electricity,” said Philippe Sauquet, President of Total’s Gas, Renewables & Power.

German authorities want to test the country’s resilience to a severe natural gas shortage with a large-scale emergency drill held over two days, the energy regulator BNetzA and Federal Ministry for Economic Affairs & Energy (BMWi) announced. “Germany’s gas supply is very secure and reliable,” said BNetzA head Jochen Homann. “However, it is prudent to be also prepared for unlikely emergencies.”

Intermittency issues of wind and solar power supply are feared to jeopardize the stability of the U.S. electricity network. To remedy this issue scientist at the Massachusetts Institute of Technology (MIT) have developed an “air-breathing” battery storage that, at the cheapest, run about $100/kWh and functions only in certain locations.

Cost and performance of battery technologies will not only be shaping customer acceptance of electric vehicles in the coming years, but also determine how easy it will be to integrate renewable energy into the grid. Tracking the relation between the dramatic drop in prices for batteries and their usage, the International Energy Agency (IEA) says “for each doubling of output, lithium ion battery prices have been getting 19% cheaper.”

Nunavut, one of the most remote northern territories of the Canadian Arctic, will get backup energy supply and reliable internet access powered by 23 MTU onsite energy diesel generator sets. Rolls-Royce will supply these gensets for the Canadian telcom Northwestel.

Arsenal football club will install a ground-breaking energy storage system at its Emirates Stadium in London by summer 2019. Developed by Pivot Power with funding from Downing investment house and facilitated by Octopus Energy, the energy storage will conserve enough electricity to run the Emirates for 90 minutes.

Surging shale gas production at Vaca Muerta has prompted Argentina to resume exports to neighbouring Chile. The Gasoducto del Pacífico has just been reopened after being shut in 2008, and exports of Argentine gas also resumed via the GasAndes pipeline to Chilean power generators.

Though the deepwater industry appears in good health, Wood Mackenzie warns that cyclical cost inflation could raise break-even costs once again. The most competitive region is the Americas, and particularly Brazil, Guyana, and the Gulf of Mexico, where over 50 billion boe of pre- and post-sanction deepwater developments are now profitable under an oil price of US$60/bbl.

Commissioning is underway at the Bioenergy Carbon Capture and Storage (BECCS) pilot plant at Drax Power Station near Selby in North Yorkshire. The 6-month pilot project was realized at a cost of £400,000, and is meant to capture 1 tonne of CO2 per day.

Nova Scotia-based Emera has agreed to divest its three gas-fired power plants in New England to an affiliate of The Carlyle Group for C$780 million, equalling US$590 million. The sale of a combined capacity of 1,100 MW helps increase Emera’s its free cash flow.

The German Chancellor Angela Merkel has extended the deadline for a much-awaited report from the country’s coal exit commissions. Elections in three coal states in eastern Germany in 2019, as well as lobbying from utilities prompted her to effectively axe the opportunity of having a report on pre-2020 action ready before the COP24 climate meeting in Poland in early December.

Electrification can help to reduce the energy use and emissions impacts of automated vehicles (AVs). Under a best-case scenario of improved efficiency through automation and ride-sharing, road transport energy use could decrease by nearly 50% compared with current levels, the International Energy Agency (IEA) finds.

Brazil’s largest gas processing unit, build at a cost of $600 million in Itaboraí, near Rio de Janeiro, will include an e-house solution by GE Power. The so-called UPGN unit is part of the Rota 3 project, designed to transport and process natural gas feedstock from Petrobras’ Bacia de Santos pre-salt cluster.

News in Brief

PG&E nears bankruptcy

Jan 18 – Northern California’s utility Pacific Gas & Electric (PG&E) has informed federal regulators that it expects to seek Chapter 11 bankruptcy protection by January. The San Francisco-based utility is under investigation for its shortcomings in the deadly 2018 wildfires. S&P this week downgraded PG&E’s gas and electric unit to ‘D’ to ‘CC’ after the utility failed to make a $21.6 million interest payment

Hitachi suspends work on Wales nuclear project

Jan 17 – Japan’s Hitachi is close to suspending construction works at its Horizon division’s Wylfa nuclear power plant in Wales. If the project gets shelved, EDF Energy's Hinkely Point-C will be the only nuclear project remaining hence flexible gas power will have to fill the capacity gap.

PG&E files for bankruptcy by Jan 29

Jan 16 – Northern California’s utility Pacific Gas & Electric has informed federal regulators that it expects to seek Chapter 11 bankruptcy protection by end of this month. The San Francisco-based utility is under investigation for its shortcomings in the deadly 2018 wildfires.

Gas engine market to top $4.4bn by 2020

Jan 15 – Global demand for natural gas engines is forecast to expand with the market set to exceed $4.4 billion in value by 2022, according to Zion Market Research. Key manufacturers include, GE, Rolls-Royce, Cummins, Caterpillar, Wärtsilä, Kawasaki, MAN, Deutz, Doosan and Yanmar.

Encana selects Siemens rotating equipment

Jan 14 – Siemens has been selected to provide one feed and sales gas train and one refrigeration compression train for Encana’s Pipestone Processing Facility in Grand Prairie, Alberta, Canada. The new unit, due to operational in 2021, will provide Encana with 19,000 barrels per day of net raw condensate processing capacity plus 170 million cubic feet per day of net inlet gas processing capacity.

Cheap U.S. LNG underpins power project in Panama

Jan 11 – AES Colón expects the entry of low-cost US LNG will transform the Central American energy sector, much as it has in the Panama. The utility in September started up an $1.15 billion LNG import terminal and adjacent combined-cycle power plant.

Rolls-Royce joins forces with OT industries

Jan 10 – Britain’s bellwether manufacturer Rolls-Royce has signed an accord with OT Industries to explore areas of joint work for the provision of Emergency Diesel Generators (EDGs) and Instrumentation and Control (I&C) systems for new units at the Paks nuclear power plant in Hungary. OT industries is majority owned by the MOL Group.

State-run utilities dominate energy spending

Jan 9 – Future investments in global energy supply largely rest in the hands of governments. In the power sector, a striking 95% of monies are spent by regulated utilities under schemes to minimize risk associated with variable prices on competitive markets. However, once China will have completed its power sector reform the share of countries that rely on competitive markets will rise from 54% to almost 80%.

Floating power market to top $1.4bn by 2022

Jan 8 – The market for floating power plants (<250MW capacity) is expected to grow at an annual rate of 10.11%, expanding from currently $889.6 million to reach $1,440 million by 2022. Main growth drivers, according to MarketsandMarkets, are cost advantages of floating over land-based power plants, particularly in regions with a lack of power infrastructure.

Energean to supply gas to Israel

Jan 7 – Energean Oil and Gas has agreed to supply 5.5 Bcm of natural gas Karish and Tanin fields over 19 years to the Israeli power producer I.P.M. Beer Tuvia. The deal is expected to $900 million in revenue for Energean over the contract duration.

Eranove builds 390 MW plant in Ivory Coast

Jan 4 – Ciprel, a subsidiary of Eranove Group of France, is preparing to construct a 390 MW power plant in Jacqueville near Abidjan, the capital of the Ivory Coast. Driven by one of GE’s F-class turbine the combined-cycle power plant will be similar to one that Ciprel already has in operation.

Works advance on Jawa-1 CCGT

Jan 3 – Construction works are forging ahead for Jawa-1, a 1,760 MW combined-cycle gas-fired power plant. Built at cost of $1.8 billion the facility will be built by PT Jawa Satu Power (JSP) and PT Jawa Satu Regas (JSR) in Karawang, West Java.

Grozny TPP due onstream in 2019

Jan 2 – Construction of Unit 2 of the Grozny Thermal Power Plant (TPP) is advancing fast with a view having the entire plant operational in mid-2019. The first 180 MW unit has been running uninterruptedly for a fortnight and once the second unit will start up, Grozny TPP will reach its design value of approximately 360 MW.

E&P profitable at $50/bbl

Dec 21 – Globally, Wood Mackenzie expects exploration budgets to remain steady in 2019. But with stronger prices, lower costs and a greater focus on commerciality, the exploration sector is now seen to be more resilient than ever, and “well positioned to generate positive full-cycle returns at oil prices of US$50/barrel or even lower.”

GE upgrades substation in Germany

Dec 20 – TransnetBW has asked GE Power to upgrade one of the substations in so-called ‘Badische Rheinschiene’, a highly loaded link in the transmission grid of southwest Germany. The project will deliver 22 bays of 400 kV GIS to reduce the substation’s footprint while increasing its capacity.

Burckhardt opens service centre for Central Europe

Dec 19 – Swiss-based Burckhard Compressions has opened a new service centre for Central Europe in Slovakia. Reciprocating compressors of any brand are serviced there for operators in Slovakia, the Czech Republic, Hungary and Poland.

Global CCS growth nears 10% per year

Jan 19 – A report from analysts Research and Markets says the global Carbon Capture and Storage (CCS) market will grow 9.18% per year between 2017 and 2021, with Babcock & Wilcox, ENGIE, GE Power, Linde and Mitsubishi Heavy Industries dominating developments.