Renewables

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.

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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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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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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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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Saudi to tender for first renewable projects

Tue, 29 May 2012 09:52:00 GMT

Saudi Arabia is about to embark on its first round of tenders for renewable energy projects, which will involve a potential 2850 MW of capacity.

Around 1100 MW will involve photovoltaic solar, 900 MW concentrated solar, 650 MW wind and 200 MW from other sources such as geothermal and waste-to-energy.

The King Abdullah City for Atomic and Renewable Energy (KA-Care) will issue draft proposals for the programme in June and invite bids.

A second round of procurement will be carried out next year and in 2014.

All of the projects will be developed as independent power projects with 20-year power purchase agreements.

In preparation for the renewable projects, Saudi’s National Grid Company is to start work soon on reinforcing the power distribution network.

The kingdom is facing an electricity consumption crisis, consuming six times the global average, prompting the government to set a target of developing 54.1 GW of renewable power by 2030, including 41 GW from solar power.

Vestas signs Chile wind deal with global methanol leader

Tue, 29 May 2012 09:15:00 GMT

Danish company Vestas has signed a deal to develop wind farms at the factories of Methanex, the world’s largest supplier of methanol.

Methanex is based in Chile and used Vestas turbines two years ago when it redeveloped its Cabo Negro wind power plant in Magallanes. Methanex wanted to move away from natural gas consumption to utilise wind, which is abundant in Chile.

Now the company has signed a deal which will see Vestas develop wind projects at its production facilities worldwide.

Methanex general manager Paul Schiodz said: “The success of our wind farm in Magallanes demonstrates the role that wind can play in the regional energy matrix. The agreement with Vestas should contribute to establish a robust regulatory framework to incentivise wind energy in the region.”

Morten Albaek of Vestas added: “Producing methanol is an energy intensive process. With the Cabo Negro wind project, Methanex has shown its creativity in finding a business model that reduces its consumption of natural gas.”

Board appointed for UK Green Investment Bank

Fri, 25 May 2012 15:57:00 GMT

The board of directors has been appointed to the UK’s Green Investment Bank, a government-backed institution to fund renewable energy projects.

The bank was one of the first ‘green’ energy pledges made by the UK’s coalition government when it came to power in May 2010 and it will have a start-up budget from government of �3bn.

Lord Smith of Kelvin, currently chairman of utility SSE, will be the bank’s chairman, with Sir Adrian Montague his deputy. Montague has been chairing the Green Investment Bank Advisory Group.

UK business secretary Vince Cable said the bank was “a major new innovation vital to securing investment in what is one of the great challenges of our age, the decarbonisation of our energy supply. It has found two candidates of outstanding calibre well suited to leading the bank through its important early phase."

The newly formed board will begin the recruitment of the company’s other directors and senior executive team shortly, with a view to having the bank – which will be headquartered in Edinburgh, Scotland – fully operational by the end of the year.

Gamesa ousts chief executive

Fri, 25 May 2012 09:45:00 GMT

Spanish wind turbine manufacturer Gamesa has ousted chief executive Jorge Calvet after the company’s market value fell 89 per cent while he was in charge.

He will be replaced by Ignacio Martin, the former boss of Spanish car maker Cie Automotive.

Reports suggest that a campaign to get rid of Calvet was driven by Spanish renewable energy giant Iberdrola, which owns 19.6 per cent of Gamesa and has two seats on its board, which unanimously voted to fire Calvet.

Calvet, who has an investment banking background, became chief executive in 2009, just as a glut in turbine manufacturing started to hit the established players in the market, most notably Danish company, Vestas, which suffered massive losses, issued two profit warning and subsequently replaced key board members.

In March this year Gamesa reported its first quarterly loss for 10 years and in the last 12 months its shares have plunged 75 per cent. After news of Calvet’s departure broke, Gamesa’s stock price rose 2.9 per cent in Madrid yesterday.

Martin said in a statement: “I am taking over at a company that successfully managed a buoyant economic period. Now that the expansion stage is behind us, it is time to focus and place more emphasis on competitiveness and profitability. We have the tools we need to come out of this process a stronger company: know-how, technological skill and an excellent team.”

UK again cuts solar feed-in-tariffs

Fri, 25 May 2012 09:39:00 GMT

The UK government yesterday unveiled an overhaul of its solar feed-in-tariffs.

From 1 August, the tariff for a small domestic solar installation will be 16p per kilowatt hour, down from 21p, and will be set to decrease on a 3 month basis thereafter, with pauses if the market slows down.

All tariffs will continue to be index-linked in line with the Retail Price Index and the export tariff will be increased from 3.2p to 4.5p. The government claims that the new tariffs should give a return on investment of over 6 per cent for most installations.

Tariffs have already been cut once this year: in April they were slashed from 43p to the existing 21p. The government tried to implement this reduction last December but was taken to court by solar companies who objected because a consultation period on the cuts was still ongoing. The government lost the case.

Energy and Climate Change Minister Greg Barker said yesterday that he wanted to send “a very clear message that UK solar continues to be an attractive proposition for many consumers considering microgeneration technologies”. He added: “Having placed the subsidy support for this technology on a long-term, sustainable footing, industry can plan for growth with confidence.”

Alan Aldridge, chairman of the Solar Trade Association said: “Despite the currently slow market, the industry can have some confidence that the new tariffs are tight but workable. Householders should be reassured the new tariffs will provide more attractive returns than can be found elsewhere today. The STA is now keen to work with government to get this positive message out.”

Suzlon to supply turbines to South African wind project

Thu, 24 May 2012 10:31:00 GMT

Indian power company Suzlon has been chosen as the preferred bidder for a 138 MW wind project in South Africa.

The AmakhalaEmoyeni Phase 1 development is being built by Cennergi, a joint venture between South Africa's Exxaro Resources and Tata Power Company, India’s largest private power utility.

Suzlon will supply 66 of its S97-2.1 MW turbines under a full EPC deal, with construction due to start early next year.

Cennergi chief executive Thomas Garner said a key factor of Suzlon winning the bid was its “current standing in the energy sector in South Africa”.

Between February and April this year, Suzlon won contracts worth $387m in Europe.

Clean Line seeks customers for 800 km transmission line

Thu, 24 May 2012 10:05:00 GMT

US transmission company Clean Line Energy has received regulatory approval to start signing customer deals for a 800-km overhead line that will connect wind farms in Iowa with Illinois.

The $1.7bn high voltage direct current Rock Island Clean Line is expected to be operational by 2017 and transfer 3.5 GW of renewable power to eastern states.

Houston-based Clean Line said the approval from the Federal Energy Regulatory Commission would allow it to subscribe up to 75 per cent of the Rock Island line's capacity with anchor customers. The remaining capacity would be sold through an open season process, the company said in a statement.

“This approval marks an important step forward in the steady progress of our Rock Island Clean Line project," said Michael Skelly, president of Clean Line.

Germany has ‘Herculean task’ to make energy policy work says new environment minister

Wed, 23 May 2012 14:52:00 GMT

Germany’s move away from nuclear in favour of renewable energy has been described as a “Herculean task” by the country’s new environment minister Peter Altmaier.

Altmaier took up his post on Tuesday after Chancellor Angela Merkel last week fired his predecessor, Norbert Roettgen, after he took the blame for a heavy regional election defeat for the Christian Democrats party.

He said that Germany’s new strategy – decided in the wake of the Fukushima nuclear disaster last year – was “a Herculean task, but it is achievable”.

He was speaking as Merkel met with the leaders of 15 other European states to thrash out her energy blueprint and its implications on other countries. Their agenda was believed to include talks on wind and solar power, grid upgrades and possible sites for storing nuclear waste.

The push to significantly boost renewable power has met with industry opposition in Germany, with transmission companies in particular stating that they cannot keep pace with the urgency to integrate wind and solar power into the grid.

Langlee overhauls wave energy converter

Wed, 23 May 2012 14:15:00 GMT

Norwegian renewable energy company Langlee Wave Power has launched a new version of its E1 Wave Energy Converter.

Langlee says the new design is considerably lighter than the previous model and has cut production costs by 25 per cent.

The upgrade involved removing four steel columns, reducing the weight of the E1 by 40 per cent.

Langlee chief executive Julius Espedal said: “The new lightweight structure is robust enough to withstand wave conditions of up to 25 metres experienced in most coastal islands of the world.”

“We have made the refinements following feedback from customers and shipyards so that it can be manufactured from a simple blueprint wherever a project is being delivered, offering job creation opportunities to local communities.”

The E1 Wave Energy Converter laps up wave movement through large water wings. These move in opposite directions providing power which is converted into electricity through generators.

Langlee is currently in talks over a prototype project in the Canary Islands, where the government is focused on bringing forward renewable energy solutions. The cost of energy in the islands is very high in comparison to the mainland and an area north of the archipelago is considered one of the most suitable for marine energy due to the wave conditions.

The company is also preparing for a full scale demonstration project in Norway next year after securing �800,000 from Innovation Norway and a further �1m from investors.