Includes News on Technology & Innovation Weekly News 26 January 2018 Evonik, Siemens harness Germany’s excess green energy to produce speciality chemicals “Green chemistry” is what Evonik and Siemens are envisaging by using electricity from renewable sources and bacteria to convert carbon dioxide into specialty chemicals. Based on €2.8 million funding from Germany's Federal Ministry of Education and Research (BMBF), the two companies just launched a 2-year research project, called ‘Rheticus’, on electrolysis and fermentation processes. sing electricity to generate chemicals is an idea from the Power-to-X concept. The idea is to help convert and store re- newable, electrical energy efficiently. "With the Rheticus Uplatform, we want to demonstrate that artificial photosynthe- sis is feasible", said Dr. Thomas Haas, responsible for the project in Evonik's strategic research department Creavis. Artificial photosynthe- sis is where CO2 and water are converted into chemicals using a com- Copyright: Evonik Industries AG bination of chemical and biological steps, in a process similar to how In the fermentation process—here at lab scale— special bacteria are convert- ing CO-containing gases to valuable chemicals through metabolic processes leaves use chlorophyll and enzymes to synthesize glucose. up to 20,000 tonnes a year. There is also potential to manufacture other Tests to start in Marl by 2021 specialty chemicals or fuels, Siemens and Evonik said in a statement. The first test plant is scheduled to go on stream by 2021 at the Evonik Some 20 scientists from the two companies are involved in the project. facility in Marl, Germany which produces chemicals such as butanol and Ultimately, the new technology is meant to serve as an energy store, hexanol, both feedstocks for special plastics and food supplements, for capable to respond to power fluctuations and help stabilize the grid. example. The next stage could see a plant with a production capacity of Rheticus is linked to the Kopernikus Initiative for the energy transition continued on page 2 Cheap gas remains dominant fuel AGENDA source in US power sector TENDER Morocco to launch $4.6bn Low-cost natural gas has stayed the dominant source of power generation in the gas project tender 2 United States for the second year in a row. The US Energy Information Adminis- tration (EIA) estimates that gas-fired power plants covered an average of 32% of total U.S. electricity needs in 2017, compared with 30% from coal power plants. IMPORTS Japan’s LNG imports rise for the first year in three 3 lectricity markets throughout the United States benefited from TRADING relatively low gas fuel costs. Mexico to launch online gas trading platform by EThe monthly average price of mid-2018 4 gas delivered to electric generators peaked at $4.14 per million British ther- TECHNOLOGY mal units (MMBtu) in January 2017, but DVI solution save declined during the second half of the Ontario 1.1-GWh 7 year and stayed in a narrow range of $3.10/MMBtu to $3.30/MMBtu. REGULATION Low volatility in gas fuel prices in PennEast pipeline gets the green light 8 H2-2017 contributed to stable wholesale electricity in the eastern United States during 2017 were rela- prices, although late summer heat waves caused short- tively unchanged year-on-year, while average monthly PROJECTS term price spikes in some western electricity markets. wholesale prices in California and Texas increased by IFC helps finance EDM, Wholesale electricity prices at major trading hubs 18% and 27%, respectively. Sasol’s power project 9 continued on page 2 2 l TENDER GTP Journal 26 January 2018 Continued from page 1, top story in Germany which is seeking new solutions to research collaboration. Siemens is providing size – the chemical industry will be able to restructure the energy system. the electrolysis technology, which is used in adapt them flexibly to local conditions. In fu- "We are developing a platform that will the first step to convert carbon dioxide and ture, they could be installed anywhere where allow us to produce chemical products in a water into hydrogen and carbon monoxide there is a source of CO2 – power plant waste much more cost-effective and environmentally- (CO) using electricity. Evonik is contributing gas or biogas for instance. friendly way than we do today", explains Dr. the fermentation process, converting gases "Its modular nature and flexibility in terms Günter Schmid, project responsible of Siemens containing CO into useful products by of location, raw material sources and products Corporate Technology. "Using our platform, metabolic processes with the aid of special manufactured make the new platform attrac- operators will in future be able to scale their micro-organisms. tive for the specialty chemicals industry in plants to suit their needs." These two steps – electrolysis and fermenta- particular", Dr. Haas said. "We are confident tion – are then scaled up from the laboratory that other companies will use the platform and Electrolysis and fermentation and combined in a technical test facility. integrate it with their own modules to manu- Both partners, Siemens and Evonik, are con- Going forward, the Rheticus platform will facture their chemical products", Dr. Schmid tributing their own core competencies to this make it simple to scale plants to the desired forecasts. n Morocco gears up to launch $4.6bn gas project tender The Moroccan energy ministry is preparing to launch a tender for gas upstream projects worth $4.6 billion with most of the gas production earmarked for domestic power generation. The Moroccan government has already selected financial and technical consultants for the venture. ome to some 1.44 billion cubic me- pany intends to replicate ters of natural gas, Morocco pro- its recent success at the duced less than 100 million cu m as Tendrara project where Hof 2015 but the governments aspires it discovered just over 1 to turn the country into an international player trillion cubic feet of gas on global gas markets, energy minister Aziz resources. The upcom- Rabbah told Bloomberg. ing period of back to back drilling in Eastern Tendrara acreage contains about Morocco, in his view, 1 Tcf of gas “has the potential to sig- Upstream projects in Morocco have been at- nificantly increase the tracting players like Sound Energy. This well- core value of our Mo- funded African and European upstream gas roccan acreage and to company has shifted its strategic focus on Mo- establish Eastern Mo- rocco, rather than Italy, unveiling plans for new rocco as a prolific but three-well exploration at its Moroccan acreage. low cost gas province, Giving details on its planned drilling pro- on the doorstep of large and growing energy projected regas terminal in the Moroccan port gramme in Eastern Morocco, Sound Energy markets." city of Jorf Lasfar. said its internally estimated volumes for the ex- Imports volumes are meant to start at ploration potential of the entire Tendrara and Qatari LNG imports to bridge 2 mpta and the government in Rabat aims to Meridja permit areas are 17 Tcf mid-case un- the supply gap have them stepped up eventually to 5 mpta to risked original gas in place. To bridge Morocco’s rising gas demand for underpin several combined-cycle gas turbine Sound CEO James Parsons said the com- power generation, until more domestic supply (CCGT) power projects. Should Jorf Lasfar from new upstream projects comes onstream, LNG imports commence as planned, Mo- Gas to Power Journal Qatar had been considering delivering LNG rocco’s power mix will shift to 13% gas gener- n Publisher from 2020. The cargoes will be shipped to a ation by 2025. Stuart Fryer Editor & Advertising Continued from page 1 Anja Karl Tel: +44 (0)7778 024 139 [email protected] Peak day-ahead wholesale electricity prices according to EIA figures. in regions controlled by the PJM Independent In California, meanwhile, hot summer tem- Senior Technology Reporter Malcolm Ramsay System Operator (ISO), which covers many peratures led to periods of high electricity de- Tel: +44 (0) 207 017 3413 parts of the Mid-Atlantic and Midwestern mand, which neared record hourly levels in the [email protected] states, averaged about $34 per megawatthour late summer. Wholesale prices during peak Subscriptions (MWh) during 2017, or about 1% lower than hours averaged $55/MWh in August, 42% Elena Fuertes Tel: +44 (0)207 253 3402 in 2016. higher than in the same month in 2016. On [email protected] Although prices in ISO New England September 1, day-ahead electricity market Layout & Production spiked to $75/MWh in December, the average prices in the California ISO were higher than Vivian Chee annual wholesale price of $38/MWh in 2017 $200/MWh for four hours and reached Tel: +44 (0) 208 995 5540 [email protected] was just 7% higher than the 2016 average, $770/MWh in one hour. n 26 January 2018 GTP Journal GAS IMPORTS l 3 Japan’s LNG imports rise to fill gap in power generation For the first year in three, Japan’s LNG purchases have risen as gas-fired power plants make up for the missing nuclear power supply. Delays in the restart of nuclear reactors also caused a 4.3% rise in thermal coal imports, while LNG purchases notched up 0.4% to 83.632 million tonnes in FY2017 – driven by a 5.4% rise in December. apan’s integrated utilities in December 2017 for their gas purchases, with 3,915 turned to LNG spot markets to stock up billion yen ($35.58bn) of expenditure their natural gas storages to prepare for versus 3,281bn yen ($29.81bn) in 2016 Jcolder weather in January. The rebound for its 83.34 million tonnes.