Power Engineering International Latest News

Metso to buy Wartsila share in MW Power

Thu, 31 May 2012 14:54:00 GMT

Metso is to buy the 40 per cent share held by W�rtsil� in their joint venture MW Power.

The deal is subject to approval from EU competition authorities and is estimated to be completed by the end of July. The value of the agreement has not been disclosed.

“In the future, Metso will develop MW Power's business as part of its comprehensive power generation solutions offering for the international market," says Jyrki Holmala, president of Metso's Power business line.

Founded in 2009, MW Power supplies small- and medium-sized heat and power plants for European market, and focuses on renewable fuel solutions. Its main customers are municipalities, process industries and utilities. The company has a total of 250 employees in Finland, Scandinavia, the Baltic area and Russia.

Engineers slam UK government for ‘scant and ill-designed’ energy storage policies

Thu, 31 May 2012 14:10:00 GMT

The UK government has been accused of failing to provide sufficient support for electricity storage technologies by the Institution of Mechanical Engineers.

The institution’s head of energy, Tom Fox, said the need for energy storage was urgent “as the UK ramps up its dependence on power generation from intermittent renewable energy sources like wind”.

He added: “For too long we’ve been reliant on using expensive ‘back-up’ fossil-fuel plants to cope with the inherent intermittency of many renewables. Electricity storage is potentially cleaner and once fully developed is likely to be much cheaper.”

But he said government incentives and policies to support the development and deployment of electricity storage technologies are “scant and ill-designed” and claimed that the potential value of storage to the UK power network is “not well understood by Westminster”.

The UK currently has 2800 MW of electricity storage capacity in the form of pumped hydro-electric storage. According to the country’s transmission operator National Grid, it will need 8000 MW of electricity storage capacity by 2025 if the penetration of wind power in the network is 30 per cent.

In a policy statement issued today, the institution calls on the government to adopt three recommendations:

• Carry out a detailed analysis to estimate the realistic requirements for electricity storage across the whole UK power system and its corresponding value to the nation;

• Develop policy frameworks that reward the value of electricity storage in the UK’s power markets;

• Encourage and support UK development of storage technologies for exploitation in world markets by advancing the commercial-scale demonstration of electricity storage technologies in the UK, thereby creating technical value that UK companies can export overseas.

US Army on renewables spree

Thu, 31 May 2012 13:51:00 GMT

The US military is becoming a major player in the biofuel and renewable energy markets.

The US Army spends more than $1 billion a year power its facilities and already utilises solar power. However it is planning a rollout of initiatives that cover all forms of renewable energy.

Richard Kidd, the US Army’s deputy assistant secretary for energy, said: “We are specifically looking at wind, solar, geothermal for electric power and biomass.”

He explained the army currently has 165 operational renewable energy projects, which are almost all under 1 MW. However its ambitions are on a much bigger scale, including a 500 MW, $2bn solar farm in the Mojave Desert.

He said the army was attractive to investors because it “can offer a very long term power purchase agreement, up to 30 years, so we can provide a reliable and secure income stream, so we get the lifecycle cost and advantages of renewable energy.”

He added that “we have a number of sites that we have identified which could generate hundreds of megawatts of power”.

Kidd also told Platts Energy week that in Afghanistan the army was removing generators and bringing in solar panels and batteries. “We run the load off the battery pack and use the solar panels to charge the batteries.” He said this was resulting in fuel reduction of up to 70 per cent.

In 2011 the Department of Defense bought 450 000 gallons of biofuels for fighter jets and other aircraft and it plans to become an even bigger buyer in the years to come.

Moventas in $99m turbine gear deal with Areva

Thu, 31 May 2012 13:45:00 GMT

Finnish gear manufacturer Moventas has signed a $99m deal to supply German renewable energy company Areva Wind.

The contract covers 5 MW gear unit deliveries for the coming years following successful deals completed this month for two offshore wind gears.

“We are very pleased to find that AREVA Wind trusts our leading expertise and over 30-year history in creating technically superior gear solutions for medium-speed and multi-megawatt class drive trains”, comments Senior Vice President of Wind Gears with Moventas, Arto Lahtela.

Conductix-Wampfler UK wins Argentina deal

Thu, 31 May 2012 13:32:00 GMT

Mobile energy firm Conductix-Wampfler UK is to export to South America for the first time after striking a deal to supply a metro system in Argentina.

The firm makes energy and data transmission systems for mobile machinery and is part of the global Conductix-Wampfler Group, owned by Delachaux Group.

The contract is with Subterraneos de Buenos Aires for products to be installed at the Villa Urquiza depot on Line B of the Buenos Aires Metro.

“This is a particularly important contract win for Conductix-Wampfler UK because it will see us working in South America for the very first time,” said Conductix-Wampfler UK managing director Alan Jones.

Andritz Hydro tidal turbine success in Scotland

Thu, 31 May 2012 12:02:00 GMT

Austrian engineering group Andritz Hydro Hammerfest (WBAG: ANDR) has successfully supplied electrical power to the grid from its 1 MW HS1000 tidal turbine installed in Scotland.

The 1 MW horizontal axis turbine is installed at the European Marine Energy Centre (EMEC) in Scotland, on the seabed, where the rotor blades are driven by tidal currents.

A 280� blade pitching system allows optimum rotor blade adjustment, to the direction and speed of the tidal current.

The ANDRITZ HYDRO Hammerfest turbine was installed in December 2011 and has since been undergoing a range of tests in the fast flowing tidal waters around Orkney and provides electricity for homes and businesses on the island of Eday, one of Orkney’s northern isles.

Andritz Hydro are exhibiting at POWER-GEN Europe in Cologne, Germany from the 12th to the 14th of June 2012.

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Chile’s biggest dam put on hold after investor pulls out

Thu, 31 May 2012 11:31:00 GMT

Chile’s biggest hydroelectric dam project has received a further setback after one of its investors said it lacks political support to go forward with the venture.

The project has also received negative publicity after protests over plans to flood 14,000 acres of Patagonia wilderness.

Santiago-based power company Colbun SA (COLBUN), which holds 49 per cent of the 2750 MW HidroAysen, said last night it wants to indefinitely suspend plans to seek environmental permission to build transmission lines to the capital.

Empresa Nacional de Electricidad SA, known as Endesa, owns the remaining 51 percent.

Local media report that Brazil’s Centrais Eletricas Brasileiras SA (ELET6), known as Eletrobras, is in talks to invest in the project.

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Europe delivers final warning to Poland on electricity rules

Thu, 31 May 2012 11:05:00 GMT

Poland has been warned by the European Commission to integrate the EU's third electricity market opening directive into national law within two months or face court action.

"To date Poland has not informed the commission of all the necessary transposition measures for fully transposing the electricity directive," the EC said.

All 27 EU countries had to transpose the EU's third electricity and gas market opening directives into national law by March 3, 2011, but 13 have failed to do so, and face being referred to the European Court of Justice.

The EC said it is still analysing the measures notified by other EU countries that have only partially transposed the directives, but did not provide further details, reports Platts.

The EU's third gas and electricity market opening directives are intended to overcome the remaining barriers to achieving a single EU energy market.

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Pakistan selects Chinese power firm to build wind farm

Thu, 31 May 2012 10:49:00 GMT

United Energy Group Ltd has announced plans to invest $3bn in a wind farm project in Pakistan.

The Chinese company said it had already obtained approval from the Pakistan government to construct the project, which is set to have a capacity of 500 MW.

Pakistan, which suffers chronic shortages of electricity, is offering clean energy producers higher rates for renewable power as it seeks to boost production, while diversifying energy supply away from oil and gas.

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Chinese anger rises as US imposes wind duties

Thu, 31 May 2012 10:21:00 GMT

China’s anger at the US decision to impose tariffs on its solar industry has been further compounded this week by the American decision to impose duties as high as 26 per cent on Chinese wind tower manufacturers.

The duties are aimed at the tall steel towers used to harvest power from the wind, and has been welcomed by US producers who say cheap Chinese and Vietnamese imports are driving them out of business.

The US Commerce Department claims the decision was made to counteract Chinese manifacturers benefiting from subsidies from the Chinese government.

It is claimed that Chinese government subsidies range from 13.74 per cent to 26 per cent of the cost of the towers, according to Reuters.

China criticized the move, urging Washington to adopt a more consultative approach to resolving trade rows.

Beijing has also gone further by issuing a complaint at the World Trade Organization against how the United States calculates anti-dumping and countervailing duties on Chinese goods

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Power transmission firms plan German wind highways

Thu, 31 May 2012 10:13:00 GMT

Chancellor Angela Merkel’s renewable power strategy has received a considerable boost after Germany’s power transmission companies put forward plans to build four electricity Autobahns to link wind turbines off the north coast with manufacturing centres in the south of the country, at a cost of $24bn.

Tennet, Amprion, 50 Hertz and Transnet BW intend to strum up support for their plans to build 3800km high-voltage electricity lines over the next ten years.

In a first blueprint for the government, the companies proposed 2,100km of direct-current power lines – similar to those used for undersea links like that between the UK to the European continent – to connect the North Sea and the Baltic coasts to the south.

The stability of the electricity network has proved a serious headache for Frau Merkel as it was designed to pipe nuclear electricity from south to north, not renewable electricity from the coast.

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ABB wins Arabian substation deal

Wed, 30 May 2012 16:00:00 GMT

Ewaan Global Residential Company has signed a $16.7m contract with ABB (NYSE: ABB) for the construction of a 110/13.8 kv substation in the Kingdom of Saudi Arabia.

Ewaan Global Residential said the move is aimed at generating power for its Alfareeda residential project being developed in the north of Jeddah.

The Alfareeda project consists of more than 2,000 residential units located on 1 million sq m of land.

The project will be fully equipped with an advanced infrastructure and service facilities including a state of the art telecommunications network, electricity lines, water supply, sewage system and rain bypass tanks.

'Given the Kingdom’s high temperatures for most of the year, reliability of power supply is of the utmost importance and we will draw on ABB’s long experience and in-depth expertise in the Saudi market to ensure maximum efficiency in delivery and performance,' stated Fahad Al Mutawae, CEO of Ewaan Global Residential Company.

ABB are set to exhibit at POWER-GEN Europe in Cologne, Germany from the 12^th to the 14^th of June.

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Goldman Sachs to invest $40bn in clean energy

Wed, 30 May 2012 12:45:00 GMT

Goldman Sachs (NYSE: GS) plans to invest $40 billion in solar, wind, hydro, and biofuels and other clean energy sources over the next decade.

The bank’s executives believe that demand for alternative energy sources will grow with global energy demand, and as big manufacturing countries, such as the BRIC nations, set more aggressive targets for reducing emissions, reports Reuters.

Goldman has also pledged to reduce its own net carbon emissions to zero by 2020.

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China gas turbine deal for Alstom

Wed, 30 May 2012 12:22:00 GMT

Alstom (Euronext: ALO) has won a deal to supply Harbin Turbine in China with a gas turbine to be used at a combined cycle plant owned by Shenzhen Nantian Electric Power Company.

Alstom will deliver its GT13E2 gas turbine and associated generator that will add to the existing GT13E2 gas turbine generator at the same site.

The plant is slated to be commissioned by 2013.

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Bosnia seeks partners for coal plants construction

Wed, 30 May 2012 12:08:00 GMT

Bosnia's top power utility Elektroprivreda BiH (EPBiH) is to invite bidders to participate in the construction of two new coal fired plant units.

The new plants will generate a combined capacity of 750 MW.

The construction cost for the 450 MW unit at the Tuzla plant and another 300 MW unit at Kakanj plant is estimated at $1.66bn.

The two coal fired power plants currently have a combined capacity of 1165 MW and output of around 6000 GWh a year.

Reuters reports that the new facility will help extend the unit's lifespan by another 15 years, increase output and reduce emission of harmful gases and put it in line with the European Union environmental standards.

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China deepens interest in Brazil’s power market

Wed, 30 May 2012 12:01:00 GMT

State Grid Corp of China is again focusing on Brazil’s electricity transmission line business, as it seeks to buy the Brazilian electricity transmission assets of Spain’s Actividades de Construcci�n y Servicios for $531m plus debt of $411m.

The latest deal is State Grid’s second acquisition in Brazil, according to FT, where it previously bought seven electricity transmission lines for $1bn in 2010.

State Grid has also been reported to be interested in buying a 39 per cent stake held in another Brazilian power holding company, Neoenergia, that is held by Spain’s Iberdrola.

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Greenhouse gas emissions increased in 2010

Wed, 30 May 2012 09:28:00 GMT

Greenhouse gas emissions increased in 2010 as a result of both economic recovery in many countries after the 2009 recession and a colder winter, according to figures released today by the European Environment Agency (EEA).

Greenhouse gas emissions of the European Union’s 27 member states increased by 2.4 per cent – or 111 million tonnes CO₂ equivalent – between 2009 and 2010.

This can be partially explained by the fact that there was a sharp 7.3 per cent �decrease of emissions between 2008 and 2009.

The EEA says the EU remains fully on track to meet its Kyoto target. The long-term reduction trend continued, since EU-27 greenhouse gas emissions still remained 15.4 per cent below 1990 levels in 2010. Emissions in the 15 Member States with a common commitment under the Kyoto Protocol (EU-15) in 2010 were 11 per cent below the Kyoto Protocol base year. These consolidated figures confirm earlier estimates for the EU, published by the EEA in October 2011.

EEA Executive director Jacqueline McGlade said that “this rebound effect was expected as most of Europe came out of recession.”

“However, the increase could have been even higher without the fast expansion of renewable energy generation in the EU.”

As in previous years, the growth in the use of renewable energy sources continued in 2010 with a 12.7 per cent increase of total consumption of energy from renewable sources. In addition, gas prices fell markedly in 2010 and EU total consumption of gas used for energy purposes went up by 7.4 per cent. The higher share of gas led to an improved carbon intensity of fossil fuel consumption in many Member States.

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IAEA’s El-Shanawany joins Lloyd’s Register as nuclear chief

Tue, 29 May 2012 16:35:00 GMT

Lloyd’s Register has appointed the atomic safety expert Professor Mamdouh El-Shanawany as its business leader for new nuclear.

El-Shanawany will help to lead the organisation’s technical support programme for countries looking to expand their nuclear programmes and those who want to develop civil nuclear energy for the first time.

He joins Lloyd’s Register from the International Atomic Energy Agency (IAEA), where he most recently was the agency’s head of safety assessment for the Division of Nuclear Installations Safety. In that global role, he was responsible for strengthening the ability of IAEA member states’ to assess the safety of their nuclear installations. The team were awarded the Nobel Prize for Peace in 2005.

“Our industry is growing more complex,” said Prof El-Shanawany. “Demand for safe and sustainable energy supply and the introduction of new nuclear reactor designs and plant technology is driving change. Owners, operators, builders and regulatory authorities require independent assurance and verification during the design development and construction phases – as well as in-service.”

Prior to joining the IAEA, El-Shanawany worked for the UK’s Nuclear Installations Inspectorate, where he was responsible for managing, assessing and approving the licensees’ arrangements and safety cases for operating plants.

European Smart Grid forum appoints UK chairman

Tue, 29 May 2012 16:25:00 GMT

A European forum on Smart Grids is to be led by a UK industry leader following the appointment of Energy Networks Association chief executive David Smith as its chairman.

GEODE is a European Group of independent energy distribution and distribution-related companies, as well as other organisations in the gas and electricity sectors.

It was set up to aid the EU development in Smart Grid thinking by sharing expertise and feeding this back to the EU Commission.

Smith said: “I’m delighted to have been asked to chair this group. A Smart Grid is a vital part of our energy future in the UK, and, as an interconnected Europe.”

Ignoring environmental fears will stall shale boom says IEA

Tue, 29 May 2012 15:57:00 GMT

The shale gas boom could be “halted in its tracks” unless the energy industry wins public trust on the environmental and social issues surrounding it, the International Energy Agency warned today.

Speaking in London today, IEA executive director Maria van der Hoeven said: “The technology and the know-how already exist for unconventional gas to be produced in an environmentally acceptable way.

“But if the social and environmental impacts are not addressed properly, there is a very real possibility that public opposition to drilling for shale gas and other types of unconventional gas will halt the unconventional gas revolution in its tracks. The industry must win public confidence by demonstrating exemplary performance; governments must ensure that appropriate policies and regulatory regimes are in place.”

The IEA today issued what it dubbed the ‘Golden Rules’ to bring about a ‘golden age’ for unconventional gas. These are: full transparency; measuring and monitoring of environmental impacts and engagement with local communities; careful choice of drilling sites and measures to prevent any leaks from wells into nearby aquifers; rigorous assessment and monitoring of water requirements and of waste water; measures to target zero venting and minimal flaring of gas; and improved project planning and regulatory control.

IEA Chief Economist Fatih Birol said: “If this new industry is to prosper, it needs to earn and maintain its social license to operate. This comes with a financial cost, but in our estimation the additional costs are likely to be limited.”

He said applying the ‘golden rules’ could increase the cost of a typical shale gas well by around 7 per cent, but, for a larger development project with multiple wells, investment in measures to reduce environmental impacts may in many cases be offset by lower operating costs.

Shale gas has transformed the energy industry in the US and many countries around the world are keen to jump on the bandwagon. In Europe, Poland is the biggest pro-shale nation – unsurprising given the country holds the largest European reserves.

However, concern over ‘fracking’, the process by which the gas is extracted, have resulted in bans on exploration in several countries, including France, Germany and Bulgaria.