The ability to efficiently burn both LPG and LFO was a major factor in selecting the Wärtsilä LG engines for this project. Once up and running, the hybrid solution will add operational flexibility and will serve to improve the existing grid stability on the island.

The order, booked in June 2020, is Wärtsilä’s first engine/hybrid power plant sale stipulation the first installation of the company’s LG engines, capable of burning both liquid petroleum gas (LPG) and light fuel oil (LFO). The hybrid plant is contractually bound to be fully operational plant by spring 2022.

“The Wärtsilä plant will provide much needed additional baseload capacity to the Island’s electricity supply. It will improve the system’s reliability, while giving us additional fuel and operational flexibility that will lower overall operating costs and reduce the dependence on diesel oil,” explained Lawrence Kupfer, CEO, USVI Water and Power Authority.

The four LG engines will be fuelled by a cleaner burning fuel which will lead to reduced air emissions and enhanced overall air quality. “There is no adverse impact to land, water or the surrounding areas,” Kupfer stressed.

Wärtsilä’s business development manager, Edmund Phillips, said “this project showcases our unique technological capabilities in combining an engine power plant and energy storage, and our commitment to drive the energy transition towards low carbon systems.”

The Finish OEM has previously supplied and installed a 21 MW power plant running primarily on propane gas to WAPA, the main utility of the US Virgin Islands.

A Memorandum on the mýa collaboration was signed by Andreas Schell, CEO of Rolls-Royce business unit Power Systems, and Dr. Uwe Lauber, CEO of MAN Energy Solutions (pictured). Lauber said the aim of the mýa platform is to “reduce complexity for our customers, and to lower the hurdles for getting payback from data.”

Solution providers tend to offer a plethora of digital solutions for performance optimisation. This often results in a “complicated, uncoordinated view of the various equipment that vessel and plant operators maintain,” according to MAN’s head of Digital and Strategy, Per Hansson.

“Essentially, mýa helps solve this problem by simplifying the retrieval of relevant data from these solutions.”

MAN Energy Solutions launched the mýa digital platform in February 2020. Members of mýa can access all of their digital assets via a single interface that integrates all data-streams from OEMs, asset owners and operators and enables a complete system-view.

However, the initiative can only become successfully if many other suppliers and industry actors join up, which is why MAN has been eager to promote the initiative to its customers.

The explicit aim of Rolls-Royce Power Systems is to have the best fleet and asset management service for our customers based on the highest data security standards. “We will focus on delivering this service through our MTU Go! platform, by cooperating with mýa to set standards across the industry,”said Jürgen Winterholler, vice-president of Digital IT at Rolls-Royce PS.

Ultimately, the company aims to build an open, collaborative culture where asset related data can be shared easily and securely between organisations and companies. Winterholler underlined, “we feel the day of technology vendors and manufactures trying to lock customers into their proprietary digital platforms by holding data hostage, is over.”

Energy Aspects’ modelling sees .S. industrial gas baseload demand slowly climb toward 19.4 billion cubic feet per day (bcf/d) through the end of August – up from a low near 18.8 bcf/d in early May at the height of the health crisis.

“We expect part of the recovery to stem from refinery utilisation, which spiked back to 78% in the week ending 3 July, the highest level since March,” said Energy Aspects’ head of North America Natural Gas, Nina Fahy.

“According to our flow data, this is helping support Gulf Coast industrial demand, with Texas and Louisiana industrial gas use up by 6% month-on-month,” she explained. However, built into that 6% recovery is the impact of outsize heat on operations in West South Central.

Hence, the hopes for a swift U.S. economy cannot be pinned on growing manufacturing activity alone.

Industrial energy demand picks up slowly

As the U.S. and Mexican car manufacturing sector regains speed, natural gas exports from Texas to Mexico are also slowly returning to “more normal levels.” Cross-border flows into Mexico have trended above 6 bcf/d on some days this week, Energy Aspects figures show, as cooling demand rose in response to warmer weather.

The U.S. car maker Ford had to shut down some manufacturing plants in the United States, due to supply chain issues with Mexican engines sourced from Chihuahua State, where industrial output is still limited due to Covid-related lockdowns. “The capacity cap in Chihuahua could mean that the issue is not unique to Ford,” analysts said, warning these issues tend to greatly reduce electricity and gas demand from all energy-intensive industries.

GM, in contrast, is calling back hundreds of laid-off workers to its pickup factories. But some 200 workers at its Fort Bend, Indiana, assembly facility are out due to COVID-19, with workers also needed in Michigan and Texas.

Trade flows to Mexico still below pre-Covid levels

Volumes on the Sur de Texas–Tuxpan (STT) gas pipeline are, however, below pre-pandemic levels, averaging 0.85 bcf/d this month so far. STT deliveries into SISTRANGAS via Monte Grande are hovering around 20 mmcf/d this month to date versus 0.2 bcf/d on average in April.

“Despite some reports confirming that the last leg of the Wahalajara pipeline system – Villa de Reyes–Aguascalientes–Guadalajara (VRAG) – is now operational, flow data indicate the pipeline has not yet begun flowing gas,” Ms Fahy pointed out.

The first leg of the system – El Encino–La Laguna – has only delivered an average of 17 mmcf/d over 8-10 July to the Victoria thermal power plant. “Contracting issues between pipeline developer Fermaca and CFE seem to be behind the delay of a full Wahalajara start-up,” she said.  

“As such, we continue to expect Manzanillo sendout to be gradually substituted with VRAG volumes from the first quarter of 2021.”

To set up the microgrid at the Agnew Gold Mine, operated by Gold Fields for some 30 years, Cummins will be working together with the distributed energy producer EDL. The Cummins gas gensets will mostly drive the 23MW off-grid power station, while diesel can be used as a backup fuel. QSV91G generators can provide backup power at temperatures of up to 45°C, Cummins pointed out.

During the first 12 months of operation, the installed and dispatchable capacity at the Agnew microgrid will come to just over 56MW - enough to powering 11,500 homes, though all the energy produced will be used by the gold mine.

Stable operations at 45°C

To be able to keep running at temperatures up to 45°C, the Gold Fields chose to use nine Cummins QSV91G gas generators which can operate in high ambient conditions. The gas gensets can also provide high impact step loads and fast ramp rates while maintaining power quality.

In addition to the QSV91G gas gensets, Cummins also installed two QSK60 diesel generators that can provide the Agnew Gold Mine with additional power at times of peak demand. The diesel genset also have the ability to black start the entire power station in the event of an outage.

To balance electricity demand from the mine with the output of the power plant, a Cummins digital master control (DMC8000) was also installed.

Aspiring for 50% green energy

At the Agnew Gold Mine, one of nine mines operated by Gold Fields, the Australian company had for long been seeking to create an innovative hybrid renewable energy solution. The Agnew mine is in operation for over 30 years, producing approximately 220,000 oz of gold per annum.

To ensure this project was a success, Cummins collaborated with global distributed energy producer EDL, which was selected due to its track record in providing sustainable, reliable energy solutions for remote operations and communities.

David Eccleston, Technical Sales Support Lead, Cummins Power Generation, said: “We’re pleased to be working with EDL to deliver this landmark project, which will provide the Agnew Gold Mine with more than 50% renewable energy over the long term, without compromising power quality or reliability.”

The Ruwais General Utilities Plant has an installed base of four GE 13E2 units that can generate up to 650 MW of electricity, all used for the refinery’s production process.

Planning and executing such an upgrade typically takes up to 18 months, but GE’s team of engineers managed to complete the project within just six months. “At GE, we are committed to supporting our customers power through every challenge and we’re honored to collaborate with ADNOC Refining on this project,” said Joseph Anis, President & CEO of GE Gas Power in the Middle East, North Africa and South Asia.

Ruwais Refinery, managed by ADNOC’s refining arm Takeer, is the largest oil refinery in the UAE with a capacity of 400,000 barrels per day (bpd) – more than twice the size of ADNOC’s Jebel Ali refinery. The refinery supplies a diversified range of petroleum products -- LPG, naphtha, gasoline, jet fuel, gas oil and base oils, fuel oil, petrochemical feedstock and propylene -- to its customers that are mostly based in Asia.

MXL2 upgrade raises GT efficiency by 1.5%

Energy-intensive industries, such as refining, need to ensure a stable supply of competitively priced electricity. Hence, refining companies often choose to build onsite power stations to ensure continuous operation of the refinery’s fracking towers. The GE chief executive singled out upgrade solutions as “an effective and affordable means” to increase power output and lower emissions per megawatt generated.

The MXL2 upgrade enhances allows operators of GT13E2 gas turbines to achieve up to a 1.5 percent increase in combined cycle efficiency and extend inspection intervals up to 48,000 equivalent operating hours (EOH). The upgrade combines GE’s latest technology developments, and over 10 million operating hours of GT13E2 fleet experience.

The retrofit and upgrade of ADNOC’s General Utilities Plant at Ruwais comes after similar upgrades were carried out in recent years on two other gas turbines at the same plant.

Though the systems installed by PowerSecure and Enchanted Rock were almost all basic, Red Cross’ systems rely on Blue Planet Energy’s energy storage solution. These are some of the first mass deployments of solar-plus-storage at non-residential locations that are designed to power schools for more than 24 hours.

Slow start into 2020

While last year saw a record number of microgrids systems installed, annual capacity was down 7% from 2018. However, the first half of 2020 was the slowest start to the year for the microgrid market since 2016.

Shelter-in-place orders and social distancing have already delayed permitting, engineering, construction and interconnection processes for developing microgrids. “While these challenges are being felt now, some developers have expressed concerns around originating new deals as some customers wait to see how the pandemic and recession impact their core business.

“Our outlook for the next two years has been decreased primarily due to project delays.

“Starting in the second half of 2022, we expect to see the challenges of originating new deals during 2020 impacting capacity additions through 2024,” said Maze-Rothstein.

Most systems below 5 MW

In terms of technology, most of the systems installed last year were below 5 MW. According to Wood Mackenzie, this is part of a larger trend.

“The market has shifted from being led by projects above 5 MW pre-2017 to smaller systems starting in 2017. Technology-neutral microgrid developers are taking notice and developing more modular designs,” said Isaac Maze-Rothstein, Wood Mackenzie Research Analyst and report author.

Distributed fossil fuel generation accounted for 86% of installed microgrid capacity in 2019, according to the Wood Mackenzie report.

“Although most of the power distributed via microgrids came from fossil fuel generation last year, we believe that microgrids in the US will become increasingly reliant on renewables technologies. Through our five-year forecast we are optimistic that solar, wind, hydropower and energy storage will grow to account for 35% of annually installed capacity by 2025,” added Maze-Rothstein.

Despite 2019 capacity beating Wood Mackenzie’s forecast expectations, the outlook through 2025 is more conservative due to coronavirus impacts.

The order currently includes refurbishing the fleet with new transmissions and testing both conventional EU Stage V and hybrid traction systems from 2021. Irish Rail said it also plans to introduce into service further MTU Hybrid PowerPacks in the years to come.

In-service date in ‘late 2022’

Delivery is to commence in early 2021, and the PowerPacks are to power Class 22000 trains on scheduled services from late 2022. Rolls-Royce specified that it could equip these PowerPacks with batteries at a later stage, turning them into fully-fledged MTU Hybrid PowerPacks.

“The MTU traction systems we are now supplying set new standards for cleanliness, reliability and fuel economy,” Jürgen Blassmann, Head of Rail Business at Rolls-Royce business unit Power Systems pointed out. Following conversion to MTU Hybrid PowerPacks, Iarnród Éireann Irish Rail will use these drive systems to make fuel savings of over 30%, depending on the route, also reducing CO2 emissions by the same amount.

Follow-up order

For years, some 234 MTU PowerPacks have been powering the Class 22000 trains. In 2018, Rolls-Royce has helped Irish Rail to to refurbish MTU PowerPacks with new transmissions to achieve fuel savings of almost 20%. That same year, Irish Rail announced its intention to trial MTU PowerPacks for the EU Stage V emissions standard.

In a second step, these are now to be converted to Hybrid PowerPacks starting next year. Trials of the EU Stage V PowerPacks are scheduled to get underway this August, following which all nine PowerPacks will be converted to Hybrid PowerPacks and commence operation at the end of 2021.

Irish Rail said it will also explore options to convert its fleet to hybrid operation at a later stage once the test runs have been successfully completed. “Reducing the exhaust emissions of our trains is a key part of our commitment to sustainability and to the strategic ‘Ireland 2040’ project, and with Rolls-Royce we have the right traction partner on board to help us do that,” explained Peter Smyth, Chief Mechanical Engineer at Iarnród Éireann Irish Rail.

Situated in Marbach at the banks of the river Neckar (pictured), the peaking power plant will help balance the regional grid. The OCGT will be equipped with an AE94.3A gas turbine, the related generator and the auxiliary systems.

The contract award is part of Germany’s special network reserve project under which tenders were issued in four areas of southern Germany.

A part of these tenders, Ansaldo Energia has also been awarded an EPC contract for the Irsching gas peaking plant in southern Bavaria. The second order win from EnBW confirms Ansaldo’s presence in the German balancing market segment.

The Italian manufacturer sated it is “proud to support EnBW in its efforts to provide reliable electricity and a stable grid in the framework of massive and constantly growing use of renewable energy.”

GridShare uses artificial intelligence (AI) to learn from consumers’ behaviour and optimise daily charging, leveraging low carbon resources and time-of-day tariffs. Utilities hence can aggregate and manage large fleets of batteries, or electric vehicle chargers, to deliver flexibility services into ancillary markets.

“An intelligent green recovery from COVID-19 is essential to mitigate the impending impacts of climate breakdown,” said Simon Daniel, CEO of Moixa told Gas to Power Journal. “AI technology gives us the edge we need as societies to accelerate the shift from fossil fuels, without placing unbearable costs on consumers.

Itochu Corp leads investment

The $5.8 million in fresh funding came from Moxia’s existing investors, led by Itochu Corp, a Japanese Fortune 500 company. The loan was agreed right after Moixa had doubled the number of batteries managed by its GridShare AI software in Japan to 20,000 in just six months.

Japan’s government 10-year subsidy scheme for homeowners with rooftop solar is coming and end.  GridShare AI algorithms help manage this change in regulation, optimising clean generation and storage on behalf of these small-scale, decentralized, residential power producers.

Exponential growth for GridShare in Japan

Headquartered in London and Manchester, Moxia said it will use the funds to expand its footprint in Japan, the UK, mainland Europe and the US. Parts of the proceeds will also underpin the company’s smart charging partnership with Honda, to be launched in the summer.

There are now more than 20,000 (200 MWh) Itochu batteries able to be managed by GridShare. “This growth is exponential,” the Moixa CEO underlined. In December 2019, the company announced the fleet of batteries had reached 10,000 in just one year.

“The growth pace in Japan alone shows clear demand for smart, scalable solutions for the energy transition,” Mr Daniel pointed out. “By automatically optimising our homes, electric car charging and energy systems to use the cleanest and cheapest power available, we can create a new energy economy that benefits everyone,” he explained. Going forward, GridShare AI is meant to “orchestrate distributed energy assets and EV charging.”

Implementation of the cost cutting program will eliminate of up to 3,000 jobs in Germany and 950 abroad. MAN said it would reduce its workforce in a “socially responsible manner” but did not rule out making compulsory redundancies.

Some of MAN’s key business areas, notably cruise ships, have been badly hit by the economic impact of the Covid-19 pandemic and management does not expect to see a recovery to pre-crisis levels until 2023. Speaking to shareholders, Dr. Uwe Lauber, CEO of MAN Energy Solutions said: “We need to prepare ourselves for a market environment that will remain difficult for a long period of time.”

The restructuring plan is meant to address the current weaknesses, the CEO said and “make lasting improvements to MAN Energy Solutions’ ability to respond to market fluctuations.”

Below target earnings

Dr Lauber underlined MAN had already “begun to combat” such negative market influences in recent years, and the introduced measures helped to meet revenue targets.

“In terms of earnings, however, we haven’t yet reached our goal,” he said, “Therefore, increasing our profitability and improving our competitive ability is key to continue successfully implementing our strategy for the future.”

In 2018, MAN adopted a new strategy of transforming the company from a component supplier to provider of sustainable energy solutions. These new solutions are meant to account for 50% of its business by 2030.