America’s green energy transition is gaining pace as retired coal power stations are being replaced with flexible gas peaking plants and renewables. Energy-related CO2 emission in 2019 consequently fell 2.2%, reversing last year’s 2.7% rise, data from the U.S. Energy Information Administration (EIA) shows.
Egypt has reduced fuel subsidies, raising domestic prices by up to 30% in compliance with requirements for a $12 billion loan from the International Monetary Fund (IMF). While most fuel prices are now in line with their costs, the government is still subsidizing gas used in bakeries and for power generation.
Australia’s AGL Energy has decided to defer the mothballing of two old gas-fired units at its 1,280 MW Torrens Island Power Station near Adelaide in a bid to meet peakload demand this summer. In a regulatory filing, AGL said the two fast-ramp gas units are meant to compensate for one faulty coal block at Loy Yang-A Power Station in Victoria.
Shale gas is now dominating the overall gas production in the United States and is forecast to reach an average 91.3 billion cubic feet per day (Bcf/d) in 2019, up 8.0 Bcf/d from the previous year. The gas glut is expected to push down Henry Hub spot prices to $2.50/MMBtu in the second half of this year and further increase gas-burn in the power sector.
Generation costs for Germany’s fleet of combined-cycle power plants is getting cheaper than those for coal or lignite for the first time in over a decade, according to a report by BloombergNEF. Analysts find burning gas has become more profitable than lignite “for the first time ever” – a trend set to accelerate the country’s coal exit.
Fossil fuel consumption keeps rising in the United States, largely due to higher natural gas use in the power sector and petroleum consumption for transport. According to EIA figures, gas demand rose in 8 of the past 10 years, surging by 37% since 2005. Thermal coal, in contrast, keeps losing market share and fell by 4.3% in 2018, the fifth consecutive annual decline.
Economic recession and rising inflation has seen electricity demand in Argentina fall for nine consecutive months, down 2.1 % in June year-on-year, while gas demand for power generation stalls. Vaca Muerta, Argentina’s vast shale formation in the Nequina Basin, still attracts interest — but mostly for unconventional oil production.
Too little available electricity supply strained the German power grid at several moments in June. Severe shortages in Germany on June 25 caused a drop in grid frequency throughout the European integrated grid. According to four German transmission system operators (TSOs), “the situation was very tense and could only be managed with the support of European partners.“
In early December, Gazprom will start supplying Russian gas to China via the ‘Power of Siberia’ pipeline. Pursuant to the $400 billion contract with CNPC, more than 1 trillion cubic meters (Tcf) of gas will be supplied over 30 year, Gazprom said, adding the aim is to build more interconnectors to China.
Seven days of a record heat-wave in Europe – with temperatures at over 44°C in northern Spain and southern France – have claimed lives, sparked wildfires and propelled up electricity demand to all-time-highs. However, temperatures are forecast to fall sharply today in northern Germany and the Netherlands, with hefty storms set to allow for wind power supply of up to 14.1 GW on Monday.
News in Brief
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.
MAN, Daewoo, HSD partner on engine digitalization
July 16 – MAN Energy Solutions, Daewoo Shipbuilding & Marine Engineering (DSME) and HSD Engine (HSD) have signed a strategic agreement to cooperate in the field of marine engine systems digitization. The three companies also work together on auxiliary systems and data analysis, aiming to apply part of their know-how to power generation and related sectors.
Canada launches first utility-scale smart microgid
July 15 – The Ontario-based municipal utility North Bay Hydro Services is cooperating with the smart grid solutions firm S&C Electric to launch Canada’s first utility-scale microgrid system. Among some solar power, the 789KW microgrid system will be powered by two 265kW natural gas generators.
Macquarie funds Mexican power plant
July 12 – 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.
B&V launches distributed energy group
July 11 – Black & Veatch has launched a dedicated distributed energy group to place its conventional power business in the context of the global energy transition. The distribute energy group will look into new fuel sources such as hydrogen and aspires to “re-power the more-than-century-old power industry.”
Funding secured for Kazah CHP project
July 10 – Kazinform Erg has committed to spend $500 million on a gas cogeneration station that will provide heat and electricity to the south of Kazakhstan. Over 87% of Kazakhstan’s electricity is generated from fossil fuels, and in 2018 the country produced 107,060 billion kWh of electricity, a 3.8% increase over the previous year and enough to cover total power use of 103,228 kWh.
Bitcoin mining uses much energy
July 9 – Estimates of bitcoin’s electricity consumption are wide-ranging, on the order of 20‑80 TWh annually. According to George Kamiya, digital energy analyst at the International Energy Agency (IEA), bitcoin mining consumed around 45 TWh in 2018 although this has risen significantly this year. Through the first six months of 2019, bitcoin mining has already consumed an estimated 29 TWh.
Coal exit doesn’t impact Germany's supply security
July 8 – Electricity supply security in Germany is set to stay “very high” even as the country begins to phase out coal-fired power generation, the Federal Ministry for Economic Affairs and Energy (BMWi) said in a monitoring report. “Energy supply is adequately ensured”, the ministry said, in all scenarios examined up to 2030. Thereafter, things are less clear but the German Coal Commission is adamant that its proposal to exit coal power by 2038 is feasible and won’t seriously impact reserve margins.
Hydrogen demo plant starts in Adelaide
July 5 – The Australian Gas Networks (AGN), part of the Australian Gas Infrastructure Group (AGIG), has received A$4.9 million in government funding for an A$11.4m hydrogen electrolyser demonstration project at the Tonsley Innovation District in Adelaide. At the test site, AGN plans to blend 5% renewable hydrogen with natural gas for supply to customers using its existing gas distribution networks. The project is based on a Siemens proton exchange membrane (PEM) electrolyser, running based on wind and solar power.
Wärtsilä forms biogas solution
July 4 – Wärtsilä Puregas Solutions, specialists in biogas upgrading technology, has merged with Wärtsilä’s biogas liquefaction team to create a one-stop-shop service for biofuel production. Having installed the world’s largest bioLNG facility in Skogn, Norway, Wärtsilä will deliver two more bio-LNG plants to customers in Scandinavia. The company’s Puregas CA process recovers more than 99.9% of the biomethane present in raw biogas.
PNM to close San Juan Generating Station
July 3 — New Mexico's largest energy holding, PNM Resources, has filed an application to the Public Regulation Commission to close the coal-fired San Juan Generating Station. For replacement power, PNM said the preferred option was a mix of gas power plants, solar and wind farms and new battery storage facilities. The utility strives to be ‘emissions-free’ by 2040.
ADB opens office in Singapore
July 2 — The Asian Development Bank (ADB) has decided to open an office in Singapore. The lean office with twelve staff will focus on the expansion of its private sector operations, e.g. through Public-Private Partnerships. “We estimate that developing Asia will need $1.7 trillion per year in infrastructure investments until 2030 to maintain the region’s growth momentum,” commented Singapore’s finance minister Heng Swee Keat.
Testing starts at Haliade-X
July 1 – Technology testing has started at GE’s Haliade-X, the world’s biggest offshore wind turbine. The 12 MW nacelle and 107-metre long blade was shipped to the UK as part of an advanced technology testing program, focused on enhancing the platform before it enters into serial production in 2021.
Tata to build UK’s first CCUS plant
June 28 – Tata Chemicals has announced plans to build the UK’s first industrial-scale Carbon Capture, Usage and Demonstration plant at its Northwich industrial site. The CCUD unit will be built at an estimated cost of£16.7 million and is planned to start operation in 2021. It will make use of CO2 emissions from fossil fuel power plants and turn it into sodium bicarbonate, which can then be sold to pharmaceutical industries.
Gazprom seeks to partner with Fortum
June 27 – The heads of Gazprom and Forum, Alexey Miller and Pekka Lundmark, have met in St. Petersburg to discuss a potential cooperation in the field of power generation. The Finish energy company Fortum owns 29.5% of the Russian power plant TGC-1 as well as a 49.99% share in the German utility Uniper. Through the talks, Gazprom could gain Fortum’s support to expand its firm long-term deliveries of Russian gas to Finland and Germany.
Quarrels over contract award
June 26 – Guam Power Authority’s decision to award a contract to finance, build and operate a new 180 MW power station on the island to Korea Electric Power has sparked protest by rival bidders. Four companies had submitted proposals – Korea Electric, Osaka Gas, Powerflex and Hanwha Energy Corp. Declining to comment on the quarrels over the contract awarding process, GPA said the deal with Korea Electric is expected to close by September 9, pending a related impact study.
PTT steps up power sector investment
June 25 – Thailand's state-run PTT Pcl has decided to boost investments in the retail and industrial power sectors to help insulate the energy company against the impact of a global economic slowdown on its oil refining and chemical businesses. Referring to the Sino-U.S. trade war as a global challenge, PTT chief executive Chansin Treenuchagron said the company is looking “how we can survive in the short term.”
