Gas Turbine Market Is Influenced By the Renewables Developments
The market for gas turbines and components will exceed $75 billion worldwide in
2014. The rate of growth in future years is greatly impacted by the regulatory
and commercial developments in wind and solar and to a lesser extent on biomass,
geothermal and hydropower. This renewables impact is continually assessed
through the iteration of data in three McIlvaine reports: Gas Turbine Combined
Cycle Supplier Program, Renewable Energy World Markets and Biofuels Updates and
Projects.
In a broader sense, the market for gas turbines is impacted by renewables due
to:
• Regulatory favoritism for renewables
• Renewable needs to supplement the intermittent electricity delivery
• Cost of renewables
• Use of renewable sources to create fuels for gas turbines
Gas turbines generate more greenhouse gases than do wind or solar electricity
producers. Regulatory favoritism in the form of either subsidies or penalties
will shape the balance between the fuels.
Forecasting the favoritism impact is difficult for a number of reasons:
• Laws are in constant flux and the future stringency is in question
• Regulations differ greatly between developed and developing countries
• Simple cycle turbines generate 40 percent more greenhouses gases/MWh as do
combined cycle turbines
• Water problems with combined cycle plants can be alleviated with dry cooling
and zero liquid discharge
• Some renewables such as hydropower, geothermal, wave and concentrated solar
have their own water problems.
• Gas turbines fired with biofuels have a low net greenhouse gas impact
• A gas turbine fired with biofuels and with carbon sequestration for enhanced
oil recovery or other purposes would reduce greenhouse gas emissions and,
therefore, be superior to solar or wind
• By reducing the potent methane to CO2, gas turbines fired with landfill gas or
fugitive sources in the oil and gas industry reduce greenhouse gases
Wind and solar are intermittent sources of energy. California is investing
heavily in gas turbine power generation to operate intermittently and,
therefore, provide constant power for the State. Innovations to allow combined
cycle plants to start and stop quickly could boost this market.
The future cost of renewables is another important factor. Solar power in
particular is likely to become considerably less expensive over time. The
question is not only when this will happen but for what portion of electricity
users.
There is a significant market developing for biofuel-fired gas turbines. Both
liquid and gaseous fuels are options. Solid fuels can be converted to gases.
There are waste-to-energy plants in construction and planning which gasify
municipal waste and then use that gas to generate power with gas turbines.
Landfill gases are now commonly utilized to generate power using gas turbines.
Methane is twenty-nine times greater a greenhouse gas contributor than is CO2
over a one hundred year time frame. It is one hundred times more potent over the
first twenty years. Therefore, there is a big advantage in using this waste gas
for power.
For more information on:
Gas Turbine and Combined Cycle Supplier Program, click on:
http://home.mcilvainecompany.com/index.php/markets/28-energy/610-59ei.
Renewable Energy World Markets, click on:
http://home.mcilvainecompany.com/index.php/markets/28-energy/473-n042
Biofuels Updates and Projects, click on:
http://home.mcilvainecompany.com/index.php/databases/28-energy/483-47ai
Renewable Energy Briefs
Starwood Energy Group Closes Financing with GE, Citi and Santander on 211 MW
Wind Project in Texas
Starwood Energy Group Global, LLC, a leading private investment firm focused on
energy infrastructure, announced that an affiliate has completed agreements to
finance and construct its first wind farm, a 211 Megawatt (MW) project 45 miles
south of Lubbock, TX.
The Stephens Ranch project, which represents the first of two phases that will
total 377 MW, will use GE 1.7-100 turbines and be built by Wanzek Construction,
with completion scheduled for late 2014.
Affiliates of GE Energy Financial Services, Banco Santander and Citi have
committed to invest tax equity in the project, and affiliates of Starwood Energy
Group have committed 100 percent of the cash equity. Santander Bank, N.A. and
Citi are also providing a non-recourse construction debt facility (including a
letters of credit facility) totaling approximately $265 million. Additional
financial details were not disclosed.
An investment affiliate of Starwood Energy Group acquired Stephens Ranch in
August 2013 from Mesa Power, an entity owned by T. Boone Pickens.
MidAmerican Solar, SunPower Corp. Synchronize Solar Star Development to the Grid
MidAmerican Solar and SunPower Corp. announced that the first portion of the
579-megawatt Solar Star development – two projects co-located in Kern and Los
Angeles counties in California – was successfully synchronized and is now
delivering energy to the California ISO grid.
The Solar Star projects are owned by MidAmerican Solar. SunPower designed and is
constructing the projects, and will provide operations and maintenance services.
Construction on the projects began in early 2013 and is expected to be complete
by year-end 2015.
The projects currently employ approximately 600 workers at the site.
When complete, the 579-megawatt Solar Star projects are expected to have more
than 1.7 million panels installed, covering 3,230 acres. MidAmerican Solar
estimates that the projects will provide electricity equivalent to powering
nearly 255,000 average California households.
A123 Energy Solutions Installs 3 MWh Grid Storage Solution™ in Spain
A123 Energy Solutions, a leading developer and manufacturer of advanced energy
storage systems, announced the recent commissioning of its Grid Storage Solution
(GSSTM) for Red Eléctrica de España (REE), the Spanish Transmission System
Operator (TSO). The system is rated at 1 MW for three hours, includes power
conversion and controls, and was installed and commissioned at the Carmona
substation near Seville in late December. The energy storage project, named
Almacena, was led by REE and was co-financed by the European Regional
Development Fund. A123 Energy Solutions provided a turnkey solution to REE,
performing all the site preparation, installation, final commissioning and
maintenance of the standardized 1MW/3MWh system.
At the core of this new system is the Long Duration Grid Battery SystemTM
(GBS-LD) with energy storage configurations that range from as little as 100 kW
to large multi-megawatt arrays. The GBS-LD can be packaged in a variety of
different enclosures, ranging from standardized 20-foot, 40-foot, and 53-foot
long containers to custom enclosures, and the systems are also available for
installations in pre-existing buildings or other locations. Utilizing A123
Systems Nanophosphate® prismatic cell technology, the LD GSS can pack up to
100MW of energy storage onto a single acre of land, and is designed for
applications like peaking, shifting, capacity firming, or transmission and
distribution (T&D) support. The GBS-LD product line complements A123 Energy
Solutions' widely-deployed GBS-HR (High Rate) grid energy storage product which
is used for high power applications in the 15-minute timeframe including
frequency response, frequency regulation, and renewable ramp management.
Vadxx Energy Closes on Financing for New Waste to Energy Facility
Vadxx Energy has closed on financing for its first commercial-scale, plastic
waste-to-energy facility. This first unit will be implemented in Akron, OH and
is scheduled to come on-line in early 2015. The regional operation will recycle
almost 60 tons per day of waste plastics, diverting them from landfill disposal.
Liberation Capital, a global private equity firm, entered into an agreement with
Vadxx to fund the first unit, and additional commercial units. Rockwell
Automation is the procurement and construction contractor and will manufacture
and commission the facility.
Vadxx has operated a 1/50th scale pilot facility for several years, working to
optimize its process, test future plastic feedstocks, and educate investors. The
company has received significant support from Northeast Ohio economic
development entities and the state of Ohio.
DTE Energy Accepting Applications for SolarCurrents
DTE Energy is accepting applications for the third offering of its expanded
SolarCurrents customer-owned pilot program, which offers customers a more
affordable way to install solar photovoltaic systems on their homes and
businesses.
The expansion of the SolarCurrents program has added 2 megawatts (MW) of
capacity in four offerings through 2014. A fifth offering in 2015 may take place
for the capacity left over from the first four offerings.
The deadline for project completion is January 5, 2015. Projects can range in
size from 1 to 20 kilowatts (kW). In this offering, a total of 1,000 kW are
available – 750 kW for residential projects and 250 kW for non-residential
projects.
For more information on Renewable Energy Projects and Update please visit
http://www.mcilvainecompany.com/brochures/Renewable_Energy_Projects_Brochure/renewable_energy_projects_brochure.htm
Headlines for the January 10, 2013 – Utility E-Alert
UTILITY E-ALERT
#1157 – January 10, 2014
Table of Contents
COAL – US
Public Comment Period Ends for Regional Haze Requirements for Navajo
Coal-burning Power Plants at issue in Independence
TVA Decision coming on Allen Coal-fired Power Plant
NRG Energy mulls switching Midwest Generation Coal-fired Power Plants to
Gas-firing
Brayton Point needed for Grid Reliability
Duke seeks to extend Operations of Crystal River 1 and 2 through 2018
Clyde Bergemann Power Group Americas receives Order for MATS Compliance
Alliant Energy receives Final Approval to Upgrade Columbia Energy Center
COAL – WORLD
Problems with Norochcholai Power Plant in Sri Lanka
GAS/OIL – US
Alliant to switch M. L. Kapp Power Plant to Gas-firing
Spot Prices for Natural Gas in US at Record High
IMG Midstream to build Small Power Plants in Pennsylvania
Quanta Services awarded EPC Contract for 120 MW Combined Cycle Power Plant in
Alaska
GAS/OIL – WORLD
Tepco aims to start Full Commercial Operations at Kashima Combined Cycle Power
Plant by July
CO2
DOE issues Final Approval for Lake Charles CCS Project Funding
EPA finally publishes CO2 Emissions Limits for New Coal-fired Power Plants
NUCLEAR
Alfa Laval wins SEK 90 Million Heat Exchanger Order in Russia
MHI to establish Nuclear Power Plant Business Unit in Turkey
Pakistan plans for 8,900 MW of Nuclear Power by 2030
Irani and Japanese Collaboration on Nuclear Power?
WATER
TVA says it is moving to Dry Storage to reduce Groundwater Contamination at
Nine Plants
Dammweg Lignite-firing Power Plant uses new RO Membrane to ensure 90 Percent
Organic Removal from River Water.
Metito has USD $25 Million to deliver Water and Wastewater Systems for a new
650 MW Thermal (Boiler)Power Plant in Suez, Egypt
First Energy Barge Plans for Flyash are facing Environmental Resistance
BUSINESS
Changes to Utility Plans
Mississippi Lime Company acquires Huron Lime
Fuel Tech awarded Air Pollution Control Orders in China
Recent News from KC Cottrell
China will Account for 85 Percent of the NOx Control Expenditures this Year
HOT TOPIC HOUR
Air Preheater Changes can greatly improve Plant Efficiency - Hot Topic on
January 9, 2014
“Corrosion Issues and Materials for APC Systems” will be the Hot Topic on
January 16, 2014
Upcoming Hot Topic Hours
For more information on the Utility Tracking System, click on:
http://home.mcilvainecompany.com/index.php/databases/2-uncategorised/89-42ei
McIlvaine Hot Topic Hour Registration
On Thursday at 10:00 a.m. Central time, McIlvaine hosts a 90 minute web meeting
on important energy and pollution control subjects. Power webinars are free for
subscribers to either Power Plant Air Quality Decisions or Utility Tracking
System. The cost is $125.00 for non-subscribers. Market Intelligence webinars
are free to McIlvaine market report subscribers and are $400.00 for
non-subscribers.
See below for information on upcoming Hot Topic Hours. We welcome your input
relative to suggested additions.
DATE SUBJECT
February 6, 2014 Review Of EUEC
February 13, 2014 Impact Of Ambient Air Quality Rules On Fossil-Fueled Boilers
And Gas Turbines More information
February 27, 2014
NOx Catalyst Performance On Mercury And SO3
More information
March 13, 2014 Industrial Boiler Fuel Options: Coal, Biomass Or Gas? More
information
March 27 Mercury Control And Removal More information
April 10 NOx And Ammonia Slip Measurement
To register for the “Hot Topic Hour”, click on:
http://www.mcilvainecompany.com/brochures/hot_topic_hour_registration.htm.
----------
You can register for our free McIlvaine Newsletters at:
http://www.mcilvainecompany.com/brochures/Free_Newsletter_Registration_Form.htm.
Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com