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Engie to switch Chile coal plant to energy storage

  • Spanish Market: Coal, Electricity
  • 11/04/24

French utility Engie is investing approximately $180mn to convert its former Tocopilla coal plant in northern Chile's Antofagasta region into a 116MW standalone battery energy storage system (BESS).

The BESS Tocopilla plant will be able to store 660MWh captured from significant solar and wind curtailment in the north, which has risen by almost 250pc to 1,699GWh in the year-to-date compared to a year ago.

The project involves installing 240 lithium ion-based containers on the former coal plant's site and making use of infrastructure synergies such as its transmission assets. Construction is scheduled to start in June.

BESS Tocopilla will have an average annual generation capacity of 211GWh, the equivalent of supplying almost 90,000 Chilean homes with power, avoiding the emission of 51,231 t/yr of carbon dioxide equivalent, said Engie.

Engie disconnected the 268MW Tocopilla coal and fuel oil plant in September 2022. Its 394MW combined-cycle Tocopilla gas plant, part of the same complex, continues to operate.

Engie is the country's fourth-largest generator with an installed capacity of almost 2.5GW. BESS Tocopilla is its fourth industrial-scale storage project in Chile, one of which is already in operation and another two under construction.


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05/12/24

UK fuel mix disclosure ‘no longer fit for purpose’

UK fuel mix disclosure ‘no longer fit for purpose’

London, 5 December (Argus) — UK company Smartest Energy presented a paper at today's RECS-led UK Rego Day seminar in London, calling for urgent reform of the electricity certification scheme to support decarbonisation goals. Smartest Energy is calling for a shift to full production and consumption disclosure, with generators receiving a certificate of origin for every MWh they send into the grid — regardless of the fuel source. This would allow renewable and non-renewable generation to be tracked and enable consumers to make informed decisions, the paper argues. Another proposal is to gradually move away from the current methodology for fuel mix disclosure, which is based on annual matching — this system effectively means consumption within a specific timeframe can be matched to output in any other period during the disclosure year. The paper suggests an initial shift to quarterly matching, followed by monthly and daily matching. Closer temporal alignment would "encourage investment in grid development and deeper decarbonisation", according to Smartest Energy. It would also give a clearer picture of seasonal and daily energy demand and the physical reality of electricity flows. The paper suggests that more transparency is particularly important now that European guarantees of origin (GOOs) are no longer recognised in the UK, and while electricity continues to flow from the continent through interconnectors. Argus assessments for non-biomass Regos generated in the current compliance period 23 (CP23) — April 2024-March 2025 — averaged £4.19/MWh in November, while CP23 biomass was assessed at an average of £3.88/MWh. In Europe, full disclosure has already been implemented in Austria, Switzerland and the Netherlands. Dutch GOOs tend to trade at a premium to the rest of the continent, with consumer preference for local certificates driving demand. France moved to monthly certificate matching at the beginning of 2021. By Giulio Bajona Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australian thermal coal exports drop on year in October


05/12/24
05/12/24

Australian thermal coal exports drop on year in October

Sydney, 5 December (Argus) — Australia's thermal coal exports dropped by 4.8pc on the year to 17.1mn t in October, because of subdued South Korean and Indian coal demand. Australian thermal coal exports to South Korea have been relatively low since the start of the year. South Korean energy providers bought 9.8mn t of Australian thermal coal between January-October, 17pc less than they did over the same period last year. On the other side of Asia, Indian thermal coal imports have been dropping in recent months, on the back of growing domestic coal production and declining coal-fired power generation. The country imported 122,196t on Australian thermal coal last month, substantially below the 1.5mn t purchased over the same period last year. Australia's two largest trading partners, China and Japan, accounted for 74.2pc of its October thermal coal exports, more than they have at any point since 2020. The two countries bought 29.3pc of the thermal coal sold by Australian firms in May 2021, and have been steadily increasing their coal market share since. Japanese coal imports from Australia fell by 6.4pc on the month to 5.9mn t in October, and may have continued to fall throughout November, according to recently released shipping records. The Japan Meteorological Agency also in early December forecast a warm winter for the county. The difference between Argus ' Newcastle average NAR 6,000kcal and 5,500kcal fob prices rose to $53/t in October, up by 38pc on the year. The value of 6,000kcal coal has remained relatively stable throughout that period, while the value of 5,500kcal coal has slid downwards. Australian mining firms received an average of $111.10/t for their coal in October 2023, down from $116/t a year earlier. Average Australian export coal prices have consistently lagged 2023 prices since the start of the year, although the gap between the two has narrowed from $137.90/t since January to $4.90/t. By Avinash Govind Australia thermal coal exports Oct '24 Oct '23 Jan - Oct '24 Jan - Oct '23 Total (mn t) 17.1 2.0 169.2 164.8 Value ($bn) 1.9 3.0 19.3 26.3 Average Price ($/t) 111.1 4.0 114.2 163.1 Average FX rate 0.7 0.6 0.7 0.7 ABS Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's economy accelerates to 4pc growth in 3Q


04/12/24
04/12/24

Brazil's economy accelerates to 4pc growth in 3Q

Sao Paulo, 4 December (Argus) — Brazil's economic growth accelerated to an annual 4pc in the third quarter, led by stronger consumer spending, according to government statistics agency IBGE. The economy accelerated from 3.3pc annual growth in the second quarter and posted the fastest growth since the first quarter of 2023. Household consumption grew by 5.5pc in the third quarter from a year earlier, while government spending increased by 1.3pc. Services grew by 4.1pc. The industry sector grew by an annual 3.6pc, driven by civil construction and five-year high automotive production in July , according to the national association of vehicle manufacturers. Exports rose by 2.1pc, while imports grew by 18pc. The oil, natural gas and mining industry contracted by 1pc, thanks to lower oil and gas exploration and production. Brazil produced 4.35mn b/d of oil equivalent (boe/d) in the third quarter, down from 4.51mn boe/d in the July-September 2023, according to oil and gas regulator ANP. The electricity and gas, water and sewage management sector increased by 3.7pc from July-September 2023, favoured by higher demand despite higher power tariffs. Brazil faced a severe drought in the first two quarters of the year that lowered river levels at hydroelectric plants and increased power charges in September. But the agriculture and cattle raising sector fell by 0.8pc, with expected production of significant crops such as corn and sugarcane dropping from a year prior also because of adverse weather. Still, output of cotton, wheat and coffee increased by 14.5pc, 5.3pc and 0.3pc, respectively, according to IBGE. The investment rate — the percentage of a country's total production that is invested — grew to 17.6pc in the third quarter, an increase of 1.2 percentage points from the same period in 2023. Brazil's GDP growth in the third quarter was up by 0.9pc from the second quarter, reaching R3 trillion ($494bn). By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Biogas takes record share of EU gas demand in 2023


04/12/24
04/12/24

Biogas takes record share of EU gas demand in 2023

London, 4 December (Argus) — Biogas production in Europe was enough to cover 6.6pc of the EU's natural gas demand in 2023, according to figures from the European Biogas Association (EBA)'s latest statistical report. Combined biogas and biomethane production in Europe was 234TWh, or 22bn m³, last year, the EBA said, while latest Eurostat data show the EU's total natural gas demand was 3,519TWh, or 294bn m³. The EBA has revised its 2023 biomethane production estimate upwards to 4.9bn m³, from 4.6bn m³ in its January report . This amounts to an increase of 0.8bn m³ compared with 2022, the biggest yearly rise on record, with year-on year growth reaching 21pc in the EU and 18pc in Europe as a whole. The number of biomethane plants in the region rose sevenfold last year to 1,510, leaving Europe with installed capacity of 6.4bn m³/yr by the first quarter of 2024. Biogas and biomethane made up 6pc of the EU's renewable electricity consumption last year, which in turn accounted for 40pc of total electricity consumed in the bloc. Italy, France, Denmark and the UK had the fastest production growth rates in Europe in 2023, but Germany remained the region's biggest biogas and biomethane producer at 100TWh. If growth rates continue at last year's pace, most European countries are likely to meet the biomethane targets in their 2030 National Energy and Climate Plans (NECPs), said the EBA. However, there is a significant gap between the volumes committed in the NECPs — which add up to 14.6bn m³/yr — and the 35bn m³/yr target in the EU's REPowerEU plan. The shortfall is partly because of insufficient investment . The EBA's report highlights the role of biogas in replacing Russian gas and LNG. According to Eurostat, 98pc of the EU's natural gas demand in 2022 was covered by imports. The bloc has the potential to produce 111bn m³/yr of biomethane by 2040 , representing over 30pc of EU gas consumption in 2022. Last year, 23pc of European biomethane was used for transport, 17pc for buildings, 15pc for power generation and 13pc for industry. Most German, UK, French, Danish, Dutch and Swiss biomethane is still generally used for heating or electricity, while Norway, Italy, Sweden, Estonia and Finland mainly use biomethane for transport. In France alone, a further 1,232 projects are at various stages of development, although French plants continue to be "on the smaller side" at an average capacity of 197 m³/h, compared with an average 468 m³/h in the rest of Europe, the EBA said. Denmark and the UK have larger plants with average capacity of 1,443 m³/h and 961 m³/h, respectively. Denmark also has the highest ratio of biomethane to natural gas in its grid — by August 2024, the share of biomethane in the Danish gas grid had reached 37.5pc. No new plants have been established to run on energy crops as the main feedstock since 2020, and there is a clear EU-wide trend towards waste feedstocks, in line with regulation that aims to phase out crop-based biofuels by 2030, the EBA said. But the feedstock mix currently used in biogas plants varies between countries and a significant portion is still crop-based, it said. Barriers to growth In a poll of network members, the EBA identified the main factors regarded as the greatest barriers to sector growth. These include market availability, low costs of natural gas, regulatory instability, the lack of a single market for biomethane, the lack of mature voluntary schemes, a political push for other solutions and long-term supply contract hurdles. To ensure 2030 targets are met, the association called for increased regulatory stability , long-term goals to boost investment, cuts to red tape and technology-neutrality under EU rules. By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Argentina streamlines energy efficiency program


03/12/24
03/12/24

Argentina streamlines energy efficiency program

Montevideo, 3 December (Argus) — Argentina's government continues to fine-tune its energy efficiency program, eliminating red tape that slowed the import of appliances and machinery into the country. President Javier Milei's administration launched a new program in August to provide households and businesses with low-interest loans for energy efficiency. It has expanded the program to include more products and incentives. In late November, it announced a regulatory change for importing energy-efficient products, eliminating the need for performance testing, audits and other bureaucratic steps. Companies importing products now only have to provide an efficiency certification. The measure covers products from televisions for households to motors and pumps for businesses. The change is part of the government's efforts to deregulate the economy. It is juxtaposed to the president's skepticism for climate change. Milei eliminated the environment ministry and Argentina's delegation to the recent UN Cop 29 climate talks abruptly left the meeting. The change is part of the government's efforts to deregulate the economy to encourage investment and use of new technology. The government created in July the ministry of deregulation and state transformation and since then has eliminated hundreds of regulations, including more than 100 related to imports. The government has also eliminated more than 33,000 public sector jobs since Milei took office a year ago. "Any effort for energy efficiency has an immediate effect," said Nicolas Vizcaino, co-founder of Greempact, which creates energy-efficiency strategies for companies. "There is no excuse not to focus on efficiency." Greempact analyzes energy consumption data and other variables to create an energy baseline for clients. The data helps design strategies. Its strategies, which include changing technology, improving management and modifying production procedures, have helped some clients reduce consumption by more than 30pc, the company says. Vizcaino said efficiency is the key to the energy transition, because it not only saves a company money, but also has a positive impact on the entire system, from generation to distribution. "One megawatt of energy saved is less expensive and has a much greater impact than one megawatt of renewable energy added to a grid," he said. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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