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 3417anja@gastopowerjournal.com

ReporterMichal ZukTel: +44 (0) 7017 3402michal@gastopowerjournal.com

AdvertisingNarges Jodeyri Tel: + 44 (0) 7253 3406narges@gastopowerjournal.com

EventsKamil HussainTel: + 44 (0) 7017 3404kamil@gastopowerjournal.com

Subscriptions Stephan M. VenterTel: + 44 (0) 7017 3407venter@gastopowerjournal.com

ProductionVivian CheeTel: +44 (0) 20 8995 5540chee@btconnect.com

� 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

LNG Pipe Supports: Clever Thinking leads to Innovative Line-Stop Design

YOUR BENEFITS: Outstanding Product QualitySavings in Site InstallationReduced Total Cost of Ownership

• Support Installation Independent from Existing Steel Structure

• Superior Clash Free Clamping Design

• Standard Product Range Facilitates Engineering Process

• High Performance to Weight Ratio for Steel Cradles

• Clamping Forces Engineered for Lifetime

• Surpasses the Requirements of the Latest Industry Standards

• Extensive In-House Product Testing Facilities

Having 50 years of experience, well established as the world

market leader in pipe supports, LISEGA provides a full range of

standardized as well as custom designed high quality products

whilst keeping delivery promises.

References available on request.

To complete the product package, the LISEGA Group provides

world-wide after sales service including training for installation

contractors, technical assistance and site supervision.

Interested in project cost savings and want to know more about

our innovative technology?

Please contact: cryo-sales@lisega.com

LISEGA SE - Germany

Hochkamp 5 - 27404 Zeven - Postfach 1357 - 27393 Zeven

Tel.: +49 (0) 42 81-713-0 - Fax: +49 (0) 42 81-713-214

E-Mail: cryo-sales@lisega.com - www.lisega.de

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: narges@gastopowerjournal.com 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

Headline Sponsor