02-2019

German panel advises nation to erase coal-fired power within the next 20 years

A German government-appointed panel has recommended that Germany stop burning coal to generate electricity by 2038 at the latest, as part of efforts to curb climate change.

The so-called ‘Coal Commission’ reached a deal in January following months of wrangling that were closely watched by other coal-dependent countries.

Germany gets more than a third of its electricity from burning coal, generating large amounts of greenhouse gases that contribute to global warming. The 28-member panel, representing mining regions, utility companies, scientists and environmentalists, suggests a review in 2032 could bring forward the coal deadline to 2035.

The new plan foresees that Germany's coal plants will be phased out step-by-step to reduce the output of greenhouse gases. The commission's plan leaves open which plants should be shut down first, saying it's a decision the government needs to negotiate with the plants' operators. The plan also foresees billions in federal funding to help affected regions cope with the economic impact, and to shield industry and consumers from higher electricity prices. The energy transition will also need a huge overhaul and modernization of the country's power grid, the commission's members said.

The decision still needs government approval and casting into laws.

troveo’s expert opinion: The reduction in coal-fired power generation will have to be compensated by an increase in renewable power sources and — at least in the interim — from burning more natural gas, which emits about half the amount of greenhouse gases as coal. While some market observers believe that economic pressure will force coal power plant operators to shut down already in the next decade, the panel’s decision achieving consensus over extremely contradictory positions is an important mile stone giving guidance to affected industries and regions.

troveo partner VPC is ready to play an active role in the transformation of the Lusatian economy working closely with regional players to develop large scale energy storage solutions and novel energetic use of biomass and other materials with low carbon footprint.

By Andreas Stephan, SPRINT! Energy, and Ronald Rost, VPC

At POWER-GEN International conference, speakers emphasised the path to gas in thermal energy generation

At the January 2019 POWER-GEN International conference and exhibition in Orlando, managers of turbine and engine makers were very much in favour of LNG and gas peaker markets.

Paul Browning, CEO OF MHPS Americas, spoke about the JAC series gas turbines offering 400-plus MW capacity and staggering 64-percent efficiency. The first commercial operation of the J series in North America commenced about a year ago at a gas-fired power plant in Oklahoma, but at least 10 more J-Class projects are underway in North America, including three joint efforts with Iberdola in Mexico.

New GE Gas Power CEO Scott Strazik sees huge potential in the near future with the shale gas abundance in the USA to be used in the global market for LNG. “Fundamentally, renewables are growing faster - In reality, when you look at fuel dynamics there’s a lot of opportunity for natural gas.”, Strazik said. He also highlighted the gas contribution to carbon emissions reduction, noting statistics indicate that two-thirds of the 27 percent drop in CO2 in past years is due to the transition from coal to gas.

Managers of Rolls-Royce’s Bergen Engines pointed out their company successes in the peaking power market. The British firm’s new line of B33:45 reciprocating diesel engines, which were developed to provide quickly needed power worldwide. This type of unit offers electrical efficiency of up to 50 percent, while being operational within minutes.

troveo expert’s opinion: The transformation of world electricity generation to renewables will not work without the bridge technology of efficient and highly flexible gas power plants. Especially peaker solutions will be needed in many countries to cope with short term high load situations.

By Andreas Stephan, SPRINT! Energy

Gen-sets of post-hurricane pump stations find new purposes

Nearly 100 industrial-sized gen-sets used to help New Orleans prevent flooding in the “past-Katrina era” are finding new homes and purposes.

Hurricane Katrina ravaged the New Orleans region when it hit in the summer of 2005, causing hundreds of deaths and $160 billion in long-term damage to property and equipment.

Much of the city sits at or below sea level, and the complex system of levees, canals and pumps could not keep up when the surge rolled in with the historic storm. The city had 148 drainage pumps ready for the job, but 80 percent of the city still flooded in Katrina’s aftermath. In 2006, the U.S. Army Corps of Engineers constructed “temporary” water pumps and flood gates to protect New Orleans, Jefferson and St. Bernard parishes, which served the area for the next 12 years.

A new, permanent 714 million $ flood management solution was completed in May 2018, making the old power systems unnecessary there. Once the new, permanent system was in place last year, the Corps. Contractor M.R. Pittman Group LLC to decommission the 12-year-old flood prevention system.

As power engineering online news reported on 18.01.2019, Houston-based industrial gen-set firm Depco Power Systems purchased 92 generators and engines from the dismantled project and took these to its Houston centre for servicing and testing.

Now, Depco is finding new uses for the equipment. Already, 14 “CAT C18 industrial power units” (approx. 500 kW each) have been sold to a pump manufacturer, while eight “CAT 3412 diesel power units” (approx. 600 kW each) are being repurposed by other companies. The remaining units can power oil rigs, other pumps or be used in power generation projects anywhere in the world.

troveo expert’s opinion: We see this re-sale of the pump stations equipment as a good example of how used power generators can be meaningful re-used and that such a re-use can be both technically and financially viable.

By Andreas Stephan, SPRINT! Energy

Our top offer this quarter - moderately used backpressue trubine

• 22 MW back-pressure steam turbine, fully serviced and used only moderately with less than 40,000 operating hours; 2009 (50 Hz)
  
  Euro 3.2 million asking price

If you would like to learn more about this offer, please directly contact our troveo team.

The following sales offers will expire in the coming quarter

• flexible applicable, max. 5 MWth grate firing boiler with modular flue gas cleaning system from the years 2000 to 2007 (50 Hz)
• robust, coal-fired 95 t/h natural circulation boiler with modern membrane wall design and travelling grate firing, only 140 T operating hours; 1983 (50 Hz)

Anyone interested in purchasing these components should contact the troveo team as soon as possible.

New additions of the last quarter include amongst others the following interesting offers to sell

• used 4 MW Siemens SGT-A05 gas turbine generator set; 1995 (50 Hz)
• used 16 MW condensing turbine; 1990 - general overhaul in 2005 (50 Hz)
• used 21 MVA three-phase synchronous generator; 1990 (50 Hz)
• used 23 MW SIEMENS gas turbine from Western Europe, very good condition, only approx. 25,000 equivalent operating hours; 2012 (50 Hz)
• used 70 MW combined cycle power plant (consisting of 2 subunits) with optional heat extraction, gas fired with HEL option, very good condition; 1998 - partly renewed 2013 (50 Hz)

Anyone interested in purchasing these components is kindly requested to contact the troveo team.

Market in good time to improve your chances of selling

The recommendations of the coal exit commission appointed by the German government are currently a subject of controversial debate. One thing everyone does agree on, though, is that the way ahead has now been defined. At present, experts assume that the share of renewables will be about 75 percent in 2030.

But what does that mean when it comes to marketing power plants and components? If marketing is to succeed, an initiative has to be launched in good time at a very early stage.

The benefits are self-evident:

• Potential buyers can be identified in a reasonable period of time, with the offer forming part of the expansion/new-build planning process.
• If marketed successfully, it may be possible to obtain a better price with several buyers competing against each other.
• The facilities are still in operation, and so costly maintenance during decommissioning or cold reserve is not necessary.
• Potential buyers can inspect the facilities in operating condition (enhancing confidence in the facility to be purchased).
• Future operating personnel can be trained under real-world conditions in the facility.

troveo expert’s tip: Market your facility in good time! For a more accurate assessment of the marketing prospects or to find out what your plant is worth, it is advisable to carry out an evaluation. troveo has established a procedure which enables the sales proceeds and the chances on the market to be estimated at little cost.

Prepared in a form suitable for the management, this procedure also assists you in strategic discussions when it comes to developing reuse concepts for the site or drawing up a schedule for remodelling the generation portfolio.

By Hardy Hilliges, VPC

How will it be possible to continue generating electricity at existing coal-fired power plant sites in the future?

In Germany alone, coal-fired power plants with a total capacity of approx. 45 GW are to be phased out over the next 20 years and will no longer be replaced by new coal-fired units. In the article "Post-utilisation concepts for power plant sites" we present some examples of how such sites could continue to be used in a sensible and sustainable manner.

A subsequent use in the energy industry certainly lies in various storage technologies or in the expansion of peak-load power plants. Germany could once again become a pioneer in this field, not only in research, but also in practical application.

In the case of locations in the immediate vicinity of cities, conversion to completely different types of use would also result in sensible options. You can read more about this in the following article.

By Sven Schwärmer, VPC

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