LMD is a process where a laser beam melts a
consumable such as powder, wire, or strip onto
the surface of a component. The process can
effectively fuse the consumable to the surface
with a full welded joint and can be used to build a
layer of deposited material by cladding a component
or produce a shape by selectively cladding areas of a
component to produce specific features.
"The advantages of LMD have to
do with it being a very low heat input
process, because although the laser
beam interacts with the surface, it
does so only to a very low depth,"
said Fairclough. "The melt point pro-
duced by the laser beam is quite small
so both the dilution of the deposited material in the
base material and the heat affected zone are quite
small. This produces the least damaging effect on the
surface of the material, much less damaging than con-
ventional welding processes."
LMD has already been around for well over a decade
in the aerospace industry where turbine components
tend to be smaller and easier to repair than steam turbine
components. Fairclough believes however that the tech-
nology can be effectively used in the repair of larger
steam and gas turbines used for power generation.
He told Gas to Power Journal that there was
already an integrated machine operating in prototype
form developed by a collaborative group of compa-
nies including TWI. "This machine will inspect a
component to see where the damage is, it will ma-
chine the damage away, it will laser deposit material
back on to the damaged area and finally machine
the component. All this is done on the same machine
using an automated tool changer system," he said.
Currently, there is an application for funding un-
derway to take production to the next stage and Fair-
clough says that two to three years could see the
prototype machine become available for effective on
site trials on the turbine floor.
The decrease in capital and processing costs of
equipment such as lasers, robots and software could
also help make LMD a viable option for steam and
industrial gas turbines in the future, he added. �
Olympics chief to head UK nuclear negotiations with EDF Energy
Weekly News 12 April 2013
Deighton was appointed Commercial Sec-
retary to the Treasury in January and will
work alongside the Permanent Secretary
at the Department for Energy, Stephen
Lovegrove. EDF Energy has already obtained plan-
ning permission for a new nuclear power station at
Hinkley Point, western England,
but the French utility is adamant
that it will not build the facility un-
less it can agree a "strike price" for
the electricity sold under a capacity
contract to be established as part of
the Electricity Market Reform.
Capacity payments - as an addi-
tional source of long-term revenue - will be intro-
duced to give project sponsors certainty for up to
10 years to underpin financing for new gas genera-
tion capacity.
The timing and composition of the capacity mar-
ket auctions, now is expected to take place in 2014
for 2018/19 delivery for the primary auction. How-
ever, forecasts of system margins by the UK energy
regulator Ofgem suggest a tightening earlier than
DECC projections.
Alistair Buchanan, Ofgem's outgoing head, in
mid-February issued a start warning that the UK's
energy supply is in jeopardy as available power gen-
eration capacity is on "a roller-coaster ride heading
downhill" due to a combination of power plant clo-
sures, shrinking gas supply availability and rising
energy demand is tightening reserves margins.
"Within three years we will see reserve margin of
generation fall from around 14 percent to below 5
percent. That is uncomfortably tight," he said. The
UK may face a squeeze on energy supplies that could
lead to power shortages by 2016. �
Laser Metal Deposition offers opportunitiesin steam and gas turbine repairs
Roger Fairclough
Lord Deighton, chief organiser of the London 2012 Olympic Games and former Goldman Sachsbanker, has been appointed by the British government to start negotiations with France's EDF Energy on bringing new nuclear power stations to the U.K. Talks are held with the aim to swiftlyincrease power generation capacity to avoid a supply gap.
Lord Deighton
AGENDA
EIA reduces forecaston US coal exports toEurope in 2013, 2014
3
REGULATION
POLICY
CHP
US president aims to add 40 GW of installed CHP capacity by 2020
4
South Korea’s Integrated EnergySupply Act encourages CHP
5
Malta invites bidderfor new CCGT powerplant
8
Coal to remain dominant in UKpower generation depite CO2 tax
2
NEW PROJECTS
MAKRKETS
TAQA expands Takoradi-2 powerplant in Ghana
7
The rising price spread between coal and
natural gas is helping coal take back mar-
ket share. Coal fired generation captured
nearly everything lost by renewables and
natural gas, surging 21percent higher in March
of 2013 compared to March 2012, according to
Genscape's Generation Fuel Monitoring Service.
"At this point last year, natural gas was eco-
nomically competitive with nearly every delivered
coal – even low cost Powder River Basin coal.
"Now only higher heat content coal delivered
to the Southeast US remains out of the money,"
says Genscape analyst Stephen Maestranzi.
However, over the past year gas prices have
risen more than 60 percent, while coal
prices are only up about 2 percent, accord-
ing to Genscape estimates. As a result, in
March coal-fired generation was 53 percent
higher than gas-fired generation.
Gas prices up 60%, comparedto 2% rise for coalWhile March electricity demand increased 2
percent over March last year, natural gas fired
generation plummeted 11 percent below March
2012 levels. Renewable energy generation also
decreased 14% in March of 2013 versus last
March. Coal-fired generation captured nearly
everything lost by renewables and natural gas,
surging 21 percent higher in March of 2013
compared to March 2012.
Gas at $4.00/MMBtu change economics of fuel switchingApril 2012 was the first time in history that nat-
ural gas-fired electricity generation was as high
as coal fired electricity generation, however as
gas prices have recently reached $4.00/MMBtu
the economics behind fuel switching are dramat-
ically different than last year," he added.
In addition to increased cost competitiveness,
coal's surge has also been helped by stronger
year-over-year power demand. March 2013 stood
in stark contrast to March 2012 as colder than av-
erage temperatures developed over the much of
the Eastern US, extending the winter season.
National power demand was up 2 percent
year-on-year, as warmer than average tempera-
tures were generally limited to the Western US,
which saw warming conditions compared to
the previous month. The strongest cold of the
month was concentrated across the coal-centric
Upper Midwest where winter-like conditions
continued well into March.
Renewable output took biggest hitRenewable generation took the largest year-
over-year hit in March, dropping 14% (6,370
GWh). A major driver of this was weaker
hydro output in the Northwest. Genscape's pro-
prietary monitors on hydro facilities in the re-
gion saw a 36 percent decrease in 2013 –
falling from 10,808 GWh to 6,945 GWh – on
significant declines in snow water equivalent.
Year to date trends in 2013 are consistent
with the March results. Overall, total year-to-
date power demand is up 2%. �
Coal to remain dominant in UK power generation despite CO2 taxFuel prices will continue to make operators favour baseload coal-fired over gas-fired power plants in the U.K.through the summer months and beyond, according to the National Grid's Summer Outlook Report. This isdespite the application of a carbon price support (CPS) of £4.94/ton on April 1 for the 2013-2014 financial year.
The CPS is applied via the Climate
Change Levy (CCL) and is in addition
to the European Union's Emission Trad-
ing System (EU ETS) carbon price. EU
ETS carbon prices were last seen trading at
€5.01/ton (£4.25/ton) for the December 2013
contract on the Ice platform. This makes the
overall price of carbon in the UK about
£9.19/ton. Dec2013 carbon prices are expected
to trade range bound on very low levels
through most of the summer period.
A reduction in the price of gas of about
30p/therm or an increase in the price of coal by
about $60/ton would be required to shift the
economics towards a more balanced position
between the two resources, according to Na-
tional Grid estimates.
Coal prices have declined in the last year,
falling to about $90/ton but are expected to rise
to $110/ton by 2014. Gas prices are expected to
rise slowly with seasonal swings dictated by
weather sensitive demand. Power prices are en-
visioned to rise in line with gas prices.
Demand in the summer months is normally
two thirds of winter demand although there is a
high level of unavailability during the summer
due to maintenance and lower prices.
Overall maximum demand forecast for the
summer is 40.3GW while minimum demand is
forecast at 20.1GW. The forecast minimum
positive surplus at the time of weekly maxi-
mum demand based on normal demand, noti-
fied generator availability and interconnectors
at float is 13.5GW.
The current UK generation capacity
dropped by 2.5GW to 76.6GW since National
Grid issue itsWinter Outlook Report, mainly
due to the closure of several plants. A total of
30.2GW or about 39 percent of this capacity
is gas-fired. �
Genscape: Rising price spread between coal and gas drivescoal generation up 21% in March
Gas to Power JournalPublisherStuart Fryer
EditorAnja KarlTel: + 44 (0) 7017 [email protected]
ReporterMichal ZukTel: +44 (0) 7017 [email protected]
AdvertisingNarges Jodeyri Tel: + 44 (0) 7253 [email protected]
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� COAL VS GAS GENERATION GTP Journal 12 April 20132
Pointing to Europe's continuous sub-
dued economic growth, low electric-
ity demand and competition from
global coal exporters, the Energy In-
formation Administration (EIA) late Tuesday
reduced its forecast for US coal exports over
the coming two years. In the domestic US
power market, meanwhile, natural gas has lost
some market share gained from coal.
In its latest Short-Term Energy Outlook, the
EIA forecast a drop in US coal exports to 107
million short tons (97.7m metric tonnes) in 2013
from, down from last year's record high of 126
million short tons. In its March forecast, the EIA
had assumed US coal exports in 2013 and 2014
would both total 110 million short tons.
By 2014, however, coal exports are likely to
recover slightly, pushing up to 109 million
short tons.
"Continuing economic weakness in Europe
(the largest regional importer of U.S. coal),
falling international coal prices, and increasing
production in other coal-exporting countries are
the primary reasons for the expected decline in
U.S. coal exports," the EIA said in the report.
The delivered US coal price averaged $2.40
per MMBtu in 2012, and EIA forecasts average
delivered coal prices of $2.41 per
MMBtu in 2013 and $2.45 per
MMBtu in 2014.
Gas loses market sharegained from coal"With actual and forecast natural gas
prices in the first 9 months of 2013
well above those during the compa-
rable 2012 period, electricity genera-
tors using natural gas are expected to
lose some of the market share gained
from coal generation in 2012," analysts said.
EIA expects power generators to increase
their use of existing coal capacity, leading to a
7.8‐percent increase in U.S. coal generation
during 2013. "This increase, which results
from the increasing cost of natural gas relative
to coal, raises the share of total generation fu-
eled by coal from 37.4 percent 2012 to 39.9
percent in 2013, but still below coal's 42.3‐
percent fuel share in 2011," it said.
Conversely, the rising cost of natural gas is
forecast to push the share of generation fueled
by natural gas down from 30.4 percent in 2012
to 28.0 percent this year, compared with a
share of 24.7 percent in 2011.
Nuclear power supply at lowestlevel since 2003Nuclear power supply, meanwhile, averaged
2,102 gigawatthours per day in 2012, which was
the lowest level since 2003, according to the
EIA. The drop in nuclear power supply was at-
tributed to extended unforeseen outages at vari-
ous nuclear plants – e.g. Unit 3 at the Turkey
Point plant in Florida, Fort Calhoun reactor in
Nebraska or Southern California's San Onofre
Units 2 and 3 - that came in addition to foreseen
refueling outages and plant maintenance.
Total volumes of electricity generated in the
US are anticipated to grow by 1.0 percent in
2013 and by 0.9 percent in 2014. �
EIA reduces forecast on U.S. coal exports to Europein 2013, 2014
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12 April 2013 GTP Unlimited MARKETS � 3
President Barrack Obama supports an
initiative to expand the currently in-
stalled of 82GW by another 40GW by
the end of 2020.
Obama’s CHP initiativeThe 40GW CHP expansion goal is based on a
2012 Executive Order from Obama which en-
courages the Departments of Energy, Com-
merce, and Agriculture, and
the EPA in coordination with
the National Economic
Council, the Domestic Policy
Council, the Council on En-
vironmental Quality, and the
Office of Science and Tech-
nology Policy to coordinate
policies in order to encourage
investment in industrial efficiency measures
such as CHP.
The installation of a further 40MW of
capacity would save about 1 quadrillion Btu of
energy annually, eliminate over 150 million
metric tons of CO2 emissions and save energy
users some $10 billion a year.
Measures to encouraging growth in the US
CHP sector are no novelty: Following the
1978 oil crisis, Congress provided tax breaks
and passed the Public Utilities Regulatory
Policies Act (PURPA) which required electri-
cal utilities to interconnect with qualified fa-
cilities (QF) such as CHPs which met
minimum fuel specific efficiency standards.
Under PURPA, utilities were required to pro-
vide QFs with reasonable standby and back-up
charges, and to purchase electricity from them
at the utilities’ avoided cost. In the 2000s,
meanwhile, independent power producers
were allowed to sell to the market without
needing QF status.
Shale gas revolution helps spurCHP growthCurrently about 8 percent of US power genera-
tion capacity and 12 percent of MWh gener-
ated annually comes from CHP, according to
the DOE report, while 87 percent of CHP in-
stallations support manufacturing plants.
The recent US shale gas revolution has
helped spur renewed interest in the sector, after
investment in new CHPs slowed down between
2004 and 2005, mainly due to volatile gas
prices and an uncertain economic outlook.
Henry Hub gas prices – a key benchmark
for natural gas – will remain in the $4 to $7
range through 2030, according to projections
from the US Energy Information Administra-
tion (EIA). With 72 percent of US installed ca-
pacity being gas-fired, this is a welcome sign
for cogeneration.
Support schemes at state levelIn 23 states, CHPs are now supported in some
form as part of their Renewable Portfolio Stan-
dards or Energy Efficiency Resource Stan-
dards. The Massachusetts Green Communities
Act, for instance, provides a rebate incentive of
$750/kW for up to 50 percent of total installed
costs for efficient CHP systems.
California has introduced a Feed-in Tariff
(FIT) for CHP below 20MW if the CHP system
is sized to thermal load and operates at greater
than 62 percent efficiency. The FIT price is
based on natural gas prices and is adjusted in
accordance with the time of day and the sea-
son. The FIT is part of the state’s target of up to
6500MW of new CHP capacity by 2030.
Planned retirement of ageing coal-fired
power plants and the introduction of the EPA’s
recently finalised power sector air regulations,
which require power producers to invest in pol-
lution control technology, also opens up poten-
tial for additional demand for new CHP
installations, the report reads.
Some industrial facilities are also expected
to replace their boilers to comply with new pol-
lution standards or address aging equipment
which may provide opportunities for them to
alternatively invest in CHP.
Challenges remainDespite the potential for growth in the CHP sec-
tor, obstacles still remain for new cogeneration
investments, according to the DOE report. Some
utilities still consider CHP to create potential
revenue erosion, introducing rate structures that
recover the majority of the cost of service to
CHPs in non-bypassable fixed charges and/or
ratcheted demand charges which reduce the eco-
nomic advantages of CHP.
New CHP installations require significant
capital investment which can hamper invest-
ment. Due to the comparatively high upfront
investment costs, CHPs project sponsors re-
quire relative certainty about fuel and electric-
ity costs, market conditions, power sector
regulations and environmental policy.
As new-build CHPs need to comply with
various local zoning, environmental, and health
and safety requirements, operators face the
challenge to interact with various local agen-
cies which may have little or no experience
dealing with a CHP project and its particular
requirements. �
US president aims to add 40GW to reach 82 GW of installed CHP capacity by 2020Low gas prices, state incentives, environmental regulations and the retirement of old power plants helps fuelling rising investment in combined heat and power (CHP) installations in the US, according to a Department of Energy (DOE) and Environmental Protection Agency (EPA) report.
PresidentObama
CHP distribution by Industry Sector
Location of existing CHP capacity
� POLICY & REGULATION GTP Journal 12 April 20134
The IES promotes an integrated approach
of building district heating networks in
conjunction to realising new CHP plant
developments as a means to guarantee the
offtake of heat loads to allow for a continuous
deployment and operation of CHP plants. The
Ministry of Knowledge Economy (MKE) is en-
titled to mark out specific areas for development
as Integrated Energy Supply Areas (IESA). The
planning of one of these developments must in-
clude an energy supply network connected to an
Integrated Energy Facility (IEF) which all build-
ings are obliged to connect to.
Under the law, a single company wins the
monopoly rights to build and operate an IEF
through a bidding process. Operators of IEFs
are also eligible for tax reductions on the in-
vestment costs for the heating infrastructure.
District Heating and Cooling CHPs, smaller-
scale heat-driven cogeneration plants for indus-
trial use, and Community Energy Systems –
CHP plants supplying power, heating, and cool-
ing to small groups of residential buildings – are
the three types of IEFs in South Korea.
The implementation of the IES law has seen
a 53 percent reduction in fuel costs, a 72 per-
cent reduction in annual run costs and a 46 per-
cent reduction in emissions.
According to IEA statistics,
South Korea produced 454 504
GWh of electricity and 190 567 TJ
of heat in 2009. Natural gas
amounted for 70 278 GWh or about
15 percent of electricity production
in the same year.
In 2011, South Korea consumed
1.6 Tcf of natural gas according to the
US Energy Information Administra-
tion (EIA). 54 percent of this went to the city gas
network while power generation companies con-
sumed most of the remainder.
South Korea is the world's second largest
importer of LNG due to its low domestic gas
production and lack of international pipeline
infrastructure. In 2011, the country imported
1.6 Tcf of LNG according to the EIA statistics.
About two-thirds of this came from Qatar,
“The outlook for CHP is very
member state specific. There has
been a growth in the number of
small installations over the past
five years but the current combination of mar-
ket conditions is hitting CHP particularly hard
across all sectors," said Dr. Fiona Riddoch,
Managing Director of COGEN Europe.
Currently, 12 percent of the continent's elec-
tricity and 15 percent of its heat are supplied by
CHP, providing at least 35 million tonnes of oil
equivalent (Mtoe) of energy savings annually.
CHPs have limited priceresponse abilityGas-fired CHP installations have experienced
deep cuts to profitability at many periods of the
day due to the lack of consideration for the heat
output of CHP installations in their electricity
market participation, combined with fuel price
fluctuations and reduced electricity demand.
Because CHPs are heat led and the electricity
they generate is in many ways a secondary prod-
uct, their ability to respond to pure price signals is
limited, especially for those CHPs with no storage
and limited flexibility, COGEN Europe told Gasto Power Journal. Changes in the structure of the
market therefore have a big impact on cogenera-
tors when compared to regular power producers.
"Large industrial CHPs who are supporting
the productivity of the wider economy need to
have the ability to place their electricity on the
market," they said.
Efficient CHPs seen as vital for postcrisis EuropeMember states are currently implementing the
EU's Energy Efficiency Directive (EED) which
requires more openness and the improved status
of cogenerators in the electricity industry, as well
as provides provisions for new service markets
in the market where CHP can better compete.
"Post-crisis Europe will need the cogenera-
tion's energy efficiency contributions for
productivity, energy savings and growth.
Member states must implement the EED
ambitiously. Post economic downturn, the
predictability, reliability and efficiency of
CHP make it an important part of the new
energy networks," said Dr. Csaba Kiss, Head
of COGEN Hungary.
Dr. Kiss will present the findings of the
2013 Snapshot Survey of the Cogeneration sec-
tor in Europe at the 20th COGEN Europe
Annual Conference taking place in Brussels on
18 and 19 April. �For more information see www.cogeneurope.eu
South Korea’s Integrated Energy SupplyAct encourages CHPDistrict heating and cooling (DHC) cogeneration currently provides 1.6 million households in 26 SouthKorean areas – mostly in greater Seoul – with power and heat, after an array of new installations came online in the wake of the 1999 Integrated Energy Supply (IES) Act. The latest report of the International Energy Agency (IEA) on cogeneration and district energy highlights the Korean IES regulation as an exampleof CHP best practice.
CHP sector under pressure, COGEN Europe calls for implementation of the Energy Efficiency DirectiveSmaller combined heat and power (CHP) installations are experiencing growth in many EU member statesbut the sector is also under pressure from the effects of the economic crisis, electricity market issues andongoing fluctuations in the price of fuel, according to COGEN Europe’s 2013 Snapshot Survey of the Cogen-eration sector in Europe
12 April 2013 GTP Journal SPOTLIGHT ON CHP � 5
NRG Energy to acquire Gregory CHP plant in Texas
NRG Energy is to acquire the
560MW equivalent Gregory Co-
generation Plant in Corpus Christi,
Texas after entering into a $244
million agreement with a consortium of affili-
ates of Atlantic Power Corporation, John Han-
cock Life Insurance Company and Rockland
Capital. The plant has a nominal generation ca-
pacity of about 400MW and steam capacity of
more than a million pounds per hour – an
amount equivalent to 160MW of electrical
power.
The majority of the plant's baseload genera-
tion is available for sale in the Electric Relia-
bility Council of Texas (ERCOT) system
operator. NRG says that the acquisition will
give them greater capacity in the south zone of
ERCOT where the company currently serves
significant retail load and is looking to expand
its customer base.
A small percentage of the Gregory plant's
electrical generation also goes to the Corpus
Christi Sherwin Alumina plant. The plant is lo-
cated on a site adjacent to the Sherwin Alumina
facility, which also serves as its steam off-
taker.
"The addition of what is, in effect, a six heat
rate, fast start, gas-fueled plant at a significant
discount to replacement cost is an invaluable
addition to our Texas fleet, particularly at this
time with market rules and supply conditions
in Texas placing a premium on flexible opera-
tions," said David Crane, President and Chief
Executive Officer of NRG.
"The Gregory plant's long-term steam con-
tract and additional generation in a zone where
NRG sees significant growth potential comple-
ments our wholesale and retail positions in the
State exceptionally well, " said John Ragan,
President of NRG's Gulf Coast region.
"Adding Gregory to NRG's existing portfolio
of cogeneration and combined cycle plants also
increases our ability to share expertise and best
practices across Texas and the nation."
The transaction is subject to closing condi-
tions including Hart Scott Rodino pre-merger
notification clearance, approval from the Pub-
lic Utility Commission of Texas and third party
consents. It is expected to close in the third
quarter of this fiscal year. �
Gregory Cogen Plant Power
In accordance with the deal, Alstom will de-
liver the parts and equipment for all the
planned inspections, as well as supply all
necessary craft labour and on-site technical
field advisors.
Two additional upgrade packages which are
based on the successful validation of the first
upgrade installed in February 2012 on a single
turbine at the power station are also included as
part of the contract.
"This upgrade repre-
sents one of our most
significant service innova-
tions for the installed
fleet. It helps our cus-
tomers to increase the
competitiveness of their
power generation assets
by increasing plant per-
formance and reducing
operation costs," said
Hans-Peter Meer,
Senior Vice President of
Alstom Thermal Services.
Alstom's GT13E2 gas
turbine is capable of oper-
ating in either a Performance Optimised
Mode for maximising performance or in a
Maintenance Costs Optimised Mode for max-
imising time between inspection intervals. It
can do this with no change in hardware and
Alstom says that this feature provides plant
operators with flexibility in responding to
market conditions.
GT13E2 can be operated performance or cost optimised"The first installation has successfully
demonstrated that this upgrade delivers
substantial benefits. With the new order, the
benefits cumulated across our other machines
will increase our combined-cycle plant
output. The plant efficiency gain will allow
us to reduce our fuel costs and CO2 emis-
sions," added Tony Lyon, Plant Manager
for South Humber Bank from Centrica
Energy. �
Alstom wins €120m gas turbine maintenancecontract for Centrica's South Humber Bank CCPP
GT13E2 MXL2 gas turbine upgrade
Alstom has been awarded a €120 million contract by Centrica Energy for gas turbine maintenance servicesat the 1260MW South Humber Bank combined-cycle power plant (CCPP) in North East Lincolnshire, England.The agreement covers five Alstom GT13E2 gas turbines installed at the plant over the next seven years. Al-stom has been awarded a €120 million contract by Centrica Energy for gas turbine maintenance services atthe 1260MW South Humber Bank combined-cycle power plant (CCPP) in North East Lincolnshire, England.The agreement covers five Alstom GT13E2 gas turbines installed at the plant over the next seven years.
� NEW PROJECTS GTP Journal 12 April 20136
TAQA, a global energy company based in
Abu Dhabi, had originally obtained ap-
proval from the government of Ghana,
as well as financing arrangements in
January 2013 and plans to commission the ex-
panded plant in the fourth quarter of 2014.
Once operational, power supply from the
Takoradi-2 plant, located about 220 kilometres
west of Accra, will account for about 15 per-
cent of Ghana's total generation capacity and
provide electricity for over a million people.
TAQA, had acquired a 90 percent state in
the Takoradi 2 plant in 2007 which leaves 10
percent for the minority shareholder Volta
River Authority (VRA) – Ghana's main power
producer. The Takoradi plant had originally
been fuelled by imported oil but the two com-
panies upgraded the plant to use mainly natural
gas in 2011.
Japanese firm Mitsui & Co and Korean
firm KEPCO will carry out the expansion
works, which involve an augmentation of the
plant's two gas turbines with steam turbines so
that they can operate in combined-cycle mode.
The project is being financed by the Interna-
tional Finance Corporation (IFC), a member of
the World Bank Group, and a consortium of in-
ternational development finance institutions led
by FMO. Lenders participating in the consor-
tium include the African Development Bank,
Deutsche Investitions-und Entwicklungsge-
sellschaft, Emerging Africa Infrastructure
Fund, ICF-Debt Pool and Proparco. The Opec
Fund for International Development and the
Canada Climate Change Program are also par-
ticipating alongside IFC.
"The Takoradi 2 power plant expansion proj-
ect builds on TAQA's position as a trusted oper-
ator of strategic energy infrastructure in Ghana.
By deploying a world-class combined cycle tur-
bine in Takoradi, we are helping Ghana to meet
its growing energy needs while increasing the
efficiency of the electricity generation system,"
said Carl Sheldon, CEO of TAQA.
John Dramani Mahama, President of Ghana,
had earlier outlined plans to double generation
capacity in his country to 5000MW by 2016
with the help of independent power producers
such as TAQA. He also mentioned that he hoped
Ghana could exceed this target to start exporting
electricity to neighbouring countries.
The Takoradi 2 expansion project reflects
our energy for growth programme aimed at in-
creasing investments in the energy sector to
build capacity for the future," he said stressing
the vital role of Independent Power Producers
(IPPs) and Public-Private-Partnerships (PPP),
such as the one between TAQA and VRA, to
cover Ghana's rising energy demand. TAQA's
is the largest IPP in the Middle East North
Africa region and owns a total gross power
generation capacity of 16,395 MW.
The plant's excellent record of over 95%
availability since 2000 is not only a demonstra-
tion of the successful implementation of the
PPP framework but also the significant devel-
opment of technology capacity of Ghana,"
Mahama said during the ground breaking
ceremony. �
TAQA starts expanding Takoradi-2 power plant in GhanaGround has been broken on TAQA's Takoradi 2 power plant expansion project in Ghana. The project aims to expand installed capacity at the primarily natural gas-fired plant from 220MW to 340MW with no increasein fuel consumption.
Siemens will deliver the power island
equipment which includes two SGT6-
5000F gas turbines, two SGen6-1000A
generators, one SGen6-2000H genera-
tor, the SSPA-T3000 instrumentation and con-
trol system, as well as two Benson heavy
duct-fired heat recovery steam generators
(HRSGs) manufactured by NEM. The com-
pany has also signed a long-term service agree-
ment for the main generating components.
The gas turbines, steam turbine and genera-
tors will be manufactured at Siemens main
60Hz power generation equipment manufactur-
ing facility in Charlotte, North Carolina.
The plant is located next to the Panda Tem-
ple I power plant at the Synergy Industrial Park
in Temple Texas. It is the third order awarded
to Siemens by Panda Power Funds, following
the Temple I and Sherman power projects.
According to Siemens, the
plant will be among the clean-
est thermal plants in the US
upon completion with CO
emissions of less than 10 parts
per million (ppm) and NOx
emission of less than 2ppm.
"Siemens' combined-cycle
Flex-Plant 30 is an environmen-
tally friendly solution that can
commence power generation within ten minutes
of startup, and full base-load power production
in less than one hour," said Mario Azar, Head of
Gas Turbine Power Plant Solutions Americas in
Siemens Fossil Power Generation Division.
"To date, Siemens is the only OEM that has
delivered and operated a power plant with
these flexible capabilities. This order from our
valued customer Panda Power Funds, repre-
sents a combined two gigawatts of flexible
eco-friendly power to the Texas region."
Bechtel has been awarded the engineering,
procurement and construction (EPC) contract
for the plant. They will also be responsible for
commissioning the plant.
"Panda Power Funds continues to seek cre-
ative ways to bring critically-needed electricity
to communities in Texas, and we look forward
to working alongside them and Siemens to
bring these significant projects to completion,"
said Jeff Brightman, President of Bechtel's
thermal business line. �
Siemens awarded $300 million power equipment orderby Panda PowerSiemens has received a $300 million order from Panda Power Funds for the turnkey supply of the naturalgas-fired 758MW Panda Temple II Power Project in Texas. The multi-shaft combined-cycle project is due tobe completed at the end of 2015 and will be able to supply the needs of about 750 000 homes. It will utiliseSiemens' Flex-Plant 30 technology and is being built in consortium with Bechtel.
Model of Temple Power Project
12 April 2013 GTP Journal NEW PROJECTS & FINANCE � 7
News in BriefAlstom teams up with AmpacimonApr 8 – Alstom and Ampacimon have
signed a memorandum of understanding to
jointly deliver electric utility solutions.
The agreement provides a framework for
combing Alstom Grid's e-terra 3.0 suite of
control room software solutions with Am-
pacimon's Dynamic Line Rating technology.
The Ampacimon system uses autonomous
Vibration Monitors to acquire data on the be-
haviour of overhead lines, measuring sag and
ambient condition to determine the maxi-
mum allowable load and also to detect icing.
The data is then transmitted to Alstom's e-
terra energy management system at the dis-
patching control centre to be incorporated
into the operators' network view.
The successful bidder is requested to en-
sure that the design of the plants makes
it possible for waste heat from the
CCGT plant to be used in the re-gasifi-
cation of LNG at the LNG facilities, if techni-
cally and economically feasible.
The owner and operator of the LNG regasi-
fication terminal project may also be called
upon to supply a further 150MW of power
for an existing heavy fuel oil-fired plant at
Enemalta's Delimara site, which is to be con-
verted to run on natural gas.
Interested parties will be invited to register
for the Expression of Interest (EoI) and the
Request for Qualification (RfQ) on 11 April,
which will be followed by a Request for
Proposals (RFP) for the project.
Independent investors will first be pre-qual-
ified before being invited to competitively bid
for the PPA and GSA on the condition that
these plants must be built and operated at
Enemalta's Delimara site, and be fully commis-
sioned by the spring of 2015.
Projected annual average gas demand for
both power plants is forecast at 15.6 trillion
Btu, and the Government of Malta estimates
that a storage capacity of about 60 000 cubic
meters of LNG will be required to serve both
the existing Delimara plant and the planned
CCGT plant.
Malta is currently dependent on imported
fuel oil to cover its electricity demand but in the
future the government aims to generate a signifi-
cant proportion of power from natural gas with
the aim of reducing costs, lowering emissions
and to comply with European Union regulations
on combustion emissions. The government said
that it is intent on decommissioning both the old
heavy fuel oil-fired Marsa Power Station as well
as older steam turbines at the Delimara plant.
Electricity demand in Malta has steadily
risen for the last decade with the exception of
the 2008-2010 period due to recession. It is
forecast to rise further as the country's econ-
omy expands. To help meet rising demand, a
new 200MW HVAC power interconnector to
Sicily is also being installed and is due to be
completed in 2014. �
Malta invites bidder for new CCGT power plantMalta's energy ministry and state utility Enemalta will invite bidders to express interest for a long-termpower purchase agreement (PPA) and a gas supply agreement (GSA) on 11 April. The winning bidder of a tender process will be required to supply about 200MW of electricity from a new combined-cycle gas turbine(CCGT) power plant and corresponding LNG regas facilities.
Malta's Power Demand; source: Enemalta
GE said the search for a specific
site for the new center is under
way and will be completed
soon.
The launch of the new Center comes as the
availability of unconventional resources, such
as shale gas, is changing the global energy
landscape and has the potential lead to greater
energy independence of North America. GE
said the Center will initially focus on technolo-
gies that enable safe, efficient and reliable pro-
duction, delivery and use of unconventional oil
and gas.
GE to invest $110m in new oil&gasresearch center in OklahomaGE is ready to invest $110 million to build a new Global Research Center in Oklahoma, creating 125 high-tech jobs with the aim of drivingtechnological advancements in the oil and gas sector and bringingproducts to market faster.
GE Global reserch centrecontinued on next page
� NEW PROJECTS & FINANCE GTP Journal 12 April 20138
Alstom will deliver parts and equip-
ment for the performance of
planned maintenance work, and
will also furnish the plant's own
team with the necessary craft labour as well as
provide on-site technical field advisors.
The delivery of an Alstom gas turbine upgrade
package consisting of technical and operational
improvements is also part of the agreement.
These improvements are designed to lower the
cost of running and maintain gas turbines by ex-
tending the time period between inspections.
"The market for natural gas power genera-
tion has changed considerably since the Lake
Road plant went online in 2002," said Hans-
Peter Meer, Alstom's Senior Vice President of its
thermal services business. "The age of uncon-
ventional gas is shifting the way customers op-
erate their gas-fired power generating facilities.
As Lake Road is increasingly called-on to
provide baseload power, Alstom's service team
will help its operators adapt to this new market
dynamic."
Alstom's GT24 turbine uses sequential com-
bustion. A 22 stage subsonic compressor feeds
combustion air into the first combustor – the
annular eV combustor – where it is mixed with
fuel and burns. The hot gases drive the single-
stage high pressure turbine. Fuel is then
injected into a second burner set, igniting in
the following annular combustion zone – the
sequential eV combustor – and thereby reheat-
ing the air and further expanding it through
four low-pressure turbine stages.
According to Alstom, this process results
in efficiency levels of around 60 percent in
combined-cycle operation and lower NOx
emissions. �
Alstom’sLake Road CCPP
Alstom wins €125m service contract from Lake Road Generating CompanyAlstom has been awarded a €125 million contract by Lake Road Generating Company, L.P. to service its 844MW gas-fired combined-cycle power plant (CCPP) located in Dayville, Connecticut. The scope of the agreement covers the plant's three Alstom GT24 gas turbines.
ABB fault detection technologyput into test useApr 8 – ABB has put its fault detection
technology and applications into test use in
Fortum's Masala substation in Finland.
The tests have indicated that with the
integrated grid automation and substation
automation solution most grid faults includ-
ing transient earth faults can now be located
and isolated, quickly restoring power into
the operable parts of the grid.
Previously it had been very difficult to
locate transient earth faults which if re-
peated could result in a permanent tripping
of the feeder causing a decrease in power
quality.
MHI to supply flue-gas desulfur-ization technology to IndiaApril 8 - Mitsubishi Heavy Industries
(MHI) has agreed to supply India's Bharat
Heavy Electricals (BHEL) with flue-gas
desulfurization technologies.
The licensing agreement covers MHI's
EPC technologies for limestone/gypsum-
based and seawater-based flue-gas desulfur-
ization systems for coal-fired boilers used
in power generation applications and for in-
dustrial boilers, MHI said.
As India's air pollution problems are be-
coming increasingly serious, moves toward
tightening the nation's environmental regu-
lations are under way, and demand for flue-
gas desulfurization equipment is expected
to expand.
Currently more than 60 percent of the
India's electric power, approximately 100
gigawatts (GW), is produced by firing coal.
The country's SOx regulations have not
come fully into force and installations of
flue-gas desulfurization equipment are
limited.
Siemens buys know-how on organic Rankine cycleApril 8 - Siemens Energy has bought spe-
cialized know-how of organic Rankine
cycle technology from insolvency adminis-
trators managing the assets of Maxxtec AG
and Adoratec GmbH.
The purchase agreements have been
signed and Siemens expects the transaction
to be concluded soon.
The organic Rankine cycle (ORC) is a
thermodynamic process which uses fluids
with a lower boiling point than water - such
as silicone oils, refrigerants or hydrocar-
bons - as the working fluid, which allows
electrical power to be generated economi-
cally from lower-temperature sources
as well. �
GE Chairman and CEO Jeff Immelt hailed
unconventional resources, and shale gas in par-
ticular, as "one of the biggest productivity driv-
ers of our lifetime." Since 2007, GE has
invested $11 billion to build broad technical
capabilities that can deliver productivity gains.
Shale gas - a key productivitydriver; GE CEOGE Oil & Gas is the company's fastest-grow-
ing business with revenues of more than $15
billion and earnings and new orders having
each grown 16 percent in 2012. Sectors of
growth include turbomachinery, subsea
drilling, pressure control, remote monitoring
and diagnostics.
Oklahoma City is home to GE Oil & Gas's
Artificial Lift business, which is a recognized
leader in electric submersible pump (ESP)
manufacturing and services with more than 550
GE employees located here.
Taken together with the new Global
Research Center in Oklahoma, the total num-
ber of R&D jobs created will exceed 2,300 and
represent an investment totaling hundreds of
millions of dollars, the company said. �
continued from previous page
12 April 2013 GTP Journal NEW PROJECTS & FINANCE � 9
Save the date in your diaries and contact us using the methods below to register your interest:
Contact: Narges Jodeyri Email: [email protected] Phone: +44 (0)20 7017 3406
Topics to be addressed include:• Progress of Electricity
Market Reforms
• Policy and regulatory
changes impacting
investment
• Achieving a diverse power
generation fuel mix
• Current investment and
financing landscape for
power projects
• Decarbonisation measures
to achieve low carbon power
generation
• Role of gas and coal in the
power market
• Infrastructure development
needs to meet rising power
demand
• Power generation
technology and innovation
Monday 29th April 2013, London
Market Reforms and the Impact on Investment and the Energy Fuel Mix
UK Power Generation
Confirmed speakers include
Giuseppina Squicciarini,Ofgem
Mike Lawn,Bloomberg New Energy Finance
Mark Ripley, National Grid
Jim Fitzgerald, The Advisory House
Mike Wilks, Pöyry Management
Consulting
Melle Kruisdijk, Wärtsilä Power Plants
Organiser
Tim Lord, Department of Energy and Climate Change
Steve Hargreaves,EDF Energy
Rupert Steele,Scottish Power
Keith Maclean,SSEDavid Cox
Gas Forum
Nayan GalaRolls Royce
Tuesday 2nd July – Wednesday 3rd July 2013, Düsseldorf
The future role of Gas toPower in Germany
Confirmed speakers include
Franzjosef Schaffhausen,German Federal
Environment Ministry
Håkan Feuk, E.ON
Dr Fiona Riddoch,COGEN Europe
Melle Kruisdijk, Wärtsilä Power Plants
Dr. Jürgen Tzschoppe,Statkraft Markets
Anne-Malore Geron, Eurelectric
Dr. Jörg Jasper, Energie Baden-
Württemberg (EnBW)
Nayan GalaRolls Royce
Dennis Volk, International Energy
Agency
Swift TarbellPratt & Whitney
Marco Nicolosi, Ecofys
Dr. Tilman Tütken, MAN Diesel & Turbo SE
Sponsors
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