Industrial Torc Global

October 19,2009

Peruvian Copper Projects to $5.1 Billion

Giant miner Xstrata plc (LON:XTA) (Zug, Switzerland) (LSE: XTA.L) announced major investments in the company's Peruvian copper mine projects, Las Bambas and Antapaccay, at the 29th Perumin - Convencion Minera, one of the most important mining conventions in Latin America, last month in Arequipa, Peru. Las Bambas is now expected to be worth $3.8 billion and Antapaccay is expected to be worth $1.3 billion, totaling $5.1 billion; previously, the two were thought to be worth $2.2 billion.

The Las Bambas project entails the construction of an open-pit mine and a 140,000-ton-per-day concentrator plant with two grinding lines. Mining operations are expected to produce 324,000 tons per year of copper, and 4,600 tons of molybdenum during a mine's life of 18 years. Las Bambas is in the city of Cotabambas, in the Apurimac region, some 150 kilometers from the Xstrata's fully owned and operational Tintaya mine. The company expects to complete a feasibility study in December and to present the environmental impact assessment to the Peruvian Authorities in mid-2010. Construction is expected to start at the end of 2011, with project completion set for the second quarter of 2014.

The Antapaccay project entails a smaller mining operation, with an open-pit mine and a 70,000-ton-per-year concentrator plant with one grinding line, designed to produce 160,000 tons per year of copper over 22 years. Antapaccay is just 12 kilometers from the Tintaya mine and is also known as the Tintaya mine expansion project. Tintaya is expected to close operations during 2013, when Antapaccay mine will be operational. The economic evaluation stage is being completed in the next few weeks and the construction is planned to start at the end of 2010. Bechtel Chile Limited (Santiago, Chile) is in charge of the feasibility studies for both projects.

Xstrata operates both projects though subsidiary Xstrata Peru S.A. (Arequipa, Peru). Also in Peru, Xstrata owns 33.75% interest in the joint-venture Compania Minera Antamina S. A., which operates the open-pit Antamina copper-zinc mine.

October 18,2009

Chinas Power Consumption Increases 10.42%

From January to September, China's overall social power consumption reached 2,663.55 billion kWh, a 1.4% increase compared with the same period in 2008. Of that amount, power consumption in the first industry reached 72.46 billion kWh, a 6.35% increase; consumption in the second industry reached 1,954.94 billion kWh, a 1.67% drop; consumption in the third industry reached 293.50 billion kWh, an 11.26% increase; and consumption in the household of urban and township residents reached 342.65 billion kWh, up 11.73% year over year.

From January to September, the overall power consumption of industry reached 1,927.26 billion kWh, a 1.8% drop year over year. Of that amount, the growth in light and heavy industry dropped 2.74% and 1.6%, respectively.

There are a total of 17 provinces and regions with increases above the national average level (1.4%). Xinjiang jumped to the top in the rankings (9.9%), followed by Jiangxi (7.95%), Hainan (7.87%), Anhui (7.57%),Yunnan (7.25%), Hunan (6.63%), Hebei (6.41), Beijing (5.25%), Chongqing (5.11%), Sichuan (4.02%), Guangxi (3.81%), Guizhou (3.71%), Shandong (3.23%), Fujian (2.44%), Tianjin(2.03%), Zhejiang (1.92%) and Hubei (1.67%).

From January to September, the national investment in power source projects reached $29.15 billion. (The investment in power source projects from January to August was corrected to $24.85 billion). As of the end of September 2008, the total installed capacity of power plants of 6 MW or more in China reached 800.18 million kW, a 9.2% increase year over year. Of that amount, installed capacity of hydropower reached 155.51 million kW, a 14.1% increase; thermal power reached 622.03 million kW, a 7.2% increase; nuclear power reached 9.08 million kW, remaining at the same level; and wind power reached 13.33 million kW, an 88.8% increase.

From January to September, the average accumulated utilization of power generation equipment in China reached 3,352 hours, a drop of 283 hours year over year. Of that amount, the average utilization hour of hydropower equipment reached 2,671 hours, a drop of 180 hours year over year; and the average utilization hour of thermal power equipment reached 3,515 hours, a drop of 284 hours year over year. From January to September, the average coal consumption in power supply reached 341 grams per kWh, a drop of 6 grams per kWh year over year; the accumulated plant service power consumption rate reached 5.88%, of which hydropower was 0.60% and thermal power was 6.68%; and line-loss rate reached 6.21%, an increase of 0.24% year over year.

October 16,2009

CCGT Plant for U.K.

E.ON UK (Coventry, England), part of German energy giant E.ON AG (OTC:EONGY) (Dusseldorf, Germany), has revealed plans to build a 1,600-megawatt (MW) combined-cycle gas-turbine (CCGT) power station in High Marnham, in Nottinghamshire, England.

The project is in the very early stages. E.ON is currently seeking public feedback about the project, but the energy giant is looking to submit a planning application early next year. If successful, the 1,600-MW plant will be up and running by 2018, generating enough electricity for up to 2 million homes and businesses. The plant will be constructed on the site of the old High Marnham coal-fired plant, a 945-MW facility that was mothballed in 2003 after more than 40 years of service.

Andy Burnett, E.ON's project development manager, said: "We're looking to secure the option to develop a power station at High Marnham that will help ensure we can keep the lights on for our homes and businesses in the most secure and affordable way, while also helping to tackle the global threat of climate change. If built, the new plant could produce power for over two million homes and would bring a range of opportunities for local people and businesses in terms of jobs and services that would be required during construction and beyond."

E.ON has submitted a request for "scoping opinion" to the Department for Energy and Climate Change (DECC), Nottinghamshire County Council, Bassetlaw District Council, and a number of other statutory consultees. Public opinion could play a key role in getting permission for the new plant, as getting the green light and securing funding for new fossil-fuel plants are becoming increasingly difficult.

E.ON has already announced that it has postponed plans for the controversial Kingsnorth coal-fired plant in Essex, while Dong Energy (Skaerbaek, Denmark) has pulled out of a project to build the 2.14 billion euro Hunterston on the Clyde coal-fired plant with Peel Energy (Manchester, United Kingdom). For additional information, see news items from October 12 and 15, 2009 - E.ON Shelves £1.5 Billion Kingsnorth Coal-Fired Plant Replacement and Dong Energy Cancels Two Coal-Fired Projects.

Burnett added: "We're very proud of the relationships we have in our local communities, so while it's still very early days, we're absolutely committed to talking to everyone so they can ask any questions they may have."

E.ON hopes to obtain permission for the project, as in nearby West Burton, rival EDF Energy, the U.K. arm of French utility Electricite de France SA (EPA:EDF) (Paris), is constructing a 1,300-MW gas-fired plant next to the existing 2,000-MW coal-fired plant. Work commenced in January 2008, and the power station will be ready for commercial operation in 2011 with an expected life of 25 years. Once completed, the CCGT plant will generate enough power for 1.5 million homes.

October 15,2009

India's L&T Plans 5000 Megawatts

Indian engineering and construction major, Larsen & Toubro Limited (BSE:500510) (L&T) (Mumbai) is reportedly considering a foray into the power generation sector, with plans to invest in 1,000 megawatts (MW) to 2,000 MW of power generation capacity in the coming years, and eventually expand to an overall generating capacity of 5,000 MW in a period of five years thereafter.

The Indian government has committed to investing $12.3 billion in the power generation and transmission sectors this fiscal year. L&T expects to win orders worth more than $2.2 billion in power generation projects this year. The firm is also optimistic about securing orders in the power transmission business, which accounts for about 75% of the revenue and 70% of the operating income of L&T's Engineering, Construction and Contracts (ECC) division. India is expected to invest $10 billion during the next five years in enhancing the country's transmission network.

L&T's foray into the power generation business began in January 2005, when it announced plans to develop a 400-MW power plant at Uttaran, near Surat in Gujarat, with an investment of nearly $260 million. The project marked the firm's first venture in developing a power plant, although the firm had been providing engineering, procurement and construction services to developers of power plants and distribution and transmission infrastructure. L&T also announced plans to foray into the power distribution and transmission businesses after attaining financial closure for the Uttaran power project, then expected in January 2006. The project was executed by L&T's ECC division. L&T also indicated that it would float a new special purpose vehicle to handle the new business segment.

In July 2007, L&T announced a significant restructuring of businesses, under which L&T Power Projects Limited (L&T PPL) and L&T Power Development Company Limited (L&T PDC) were formed. L&T PPL was designed to be the investment arm for all the group's thermal, hydro and nuclear power projects, while L&T PDC would execute coal-fired and multi-fuel power plants. L&T PPL also was entrusted with the group's ventures in the power transmission and distribution sectors.

At the time, L&T announced plans to develop coal-based power generating capacities of up to 5,000 MW during a period of five years, with a total investment of $4.3 billion. The venture was to be funded in a debt-to-equity ratio of 70:30, with L&T investing $1.3 billion and raising the balance funds through debt. L&T also planned to bid for ultra-mega power projects through its power subsidiary.

In June 2008, L&T revised investment plans for power generation projects. While the target of developing 5,000 MW of power generating capacity during a period of five years remained unchanged, the overall investment envisaged rose to $5.4 billion, and the firm planned to fund the initiative in a debt-to-equity ratio of 80:20, with L&T investing $1.08 billion and raising the balance funds required through debt.

Last month, L&T secured a $430 million contract from GMR Energy Limited (Bangalore, Karnataka) to develop a gas-based power plant at Vemagiri near Rajahmundry in Andhra Pradesh. The power plant will comprise two units of 384 MW each and will be developed on a lump sum turnkey basis by the end of March 2012.

L&T also secured a contract last month from the state government of Himachal Pradesh to develop the 149-MW Sach Pass hydropower project. The firm is developing the $108 million, 60-MW Singoli Bhatwari hydroelectric power project on the Mandakini River, under a contract secured in May 2006 from the state government of Uttaranchal. L&T is executing the contract on a build-own-operate-transfer basis and will operate the power plant for 45 years. The firm also will develop a 12-kilometer, 132-kilovolt transmission line as part of the project.

With more than four decades of experience in the power sector by way of providing engineering, procurement and construction services and undertaking civil, electrical, mechanical, and instrumentation works, L&T has participated in more than 100 power projects with a combined generation capacity of 35,000 MW. The firm is looking to tap into opportunities present in India's burgeoning power sector through a foray into the power generation segment.

October 08,2009

Italian IES Refinery

Researched by Industrial Info Resources (Sugar Land, Texas)--The 51,000-barrel-per-day (BBL/d) IES refinery, located in Mantova in the region of Lombardy, Italy, is scheduled to perform a maintenance shutdown in November. The refiney is owned by MOL Hungarian Oil and Gas plc (Budapest, Hungary).

The shutdown is planned to start November 2, and units are expected to be brought online November 28. Although maintenance will take place in the Topping, the 24,000-BBL/d Visbreaking, the Vacuum, the 8,900-BBL/d Thermal Cracker, and the MildHydrocracking, the entire facility will have to be brought offline because the plant has only one production train. Cestaro Rossi & c. SpA (Bari, Italy) and Ais are in charge of the turnaround. Both companies have worked with the refinery for a long time.

The next planned maintenace turnaround is scheduled to take place in the fourth quarter of 2010, and the next overhaul in the fourth quarter of 2012.

The refinery has a potential storage capacity of 8,000 tons per day, and refines petroleum mainly from Syria, Egypt, Russia, Iran and Iraq.

October 07,2009

2010 Capitol Spending.

Researched by Industrial Info Resources (Sugar Land, Texas)--Because of the recession, the Oil & Gas Transmission Industry has been going through an adjustment period or global reset of sorts. In 2009, economics, combined withregulatory and funding issues, forced many companies to place projects on hold, delay spending or cancel projects entirely. Project owners are re-evaluating projects and trying to reduce costs where possible.

Against such a backdrop, one might expect a pessimistic outlook, but certain sectors show promising signs for a positive 2010 as far as capital spending is concerned. Some of the more positive sectors include shale gas developments such as the Barnett Shale, which are attracting increased pipeline infrastructure construction, as well as CO2 pipeline construction.

Join Ilna Penny, Senior Pipeline Analyst for Industrial Info, as she explores these developments on this week's "Navigating the Currents of Change" webcast.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.

September 22,2009

BP Sells Indian Wind Assets

Researched by Industrial Info Resources (Sugar Land, Texas)--BP plc (NYSE:BP) (London, England) has divested the company's wind power assets in India with the sale of BP Energy India Private Limited (BPEIPL) to independent power producer Green Infra Limited for $95 million. The equity component of the sale amounts to $37 million, while the debt component amounts to $58 million.

The transaction was a result of a strategic decision taken by BP to focus on offshore wind development projects in the United States, where its wind energy portfolio consists of nearly 100 projects with a combined potential power-generating capacity of more than 20,000 megawatts (MW).

With the acquisition of BPEIPL's assets, comprising three wind power plants with a total capacity of 100 MW, Green Infra is the largest independent power producer in India's renewable energy sector with a total capacity of 124 MW. BPEIPL owns and operates a windfarm in Maharashtra and two wind power projects in Karnataka. The 40-MW windfarm in Dhule, Maharashtra, commenced operations in the second half of 2007. The 36.3-MW wind power plant in Bharmasagara, Karnataka, was commissioned in the last quarter of 2008, while the 23.1-MW windfarm in Telagi, also in Karnataka, was commissioned in the first quarter of this year. Green Infra operates a 25-MW windfarm in the southern Indian state of Tamil Nadu.

Green Infra is a joint venture between IDFC Private Equity (IDFC PE) (Mumbai), a wholly owned subsidiary of Infrastructure Development Finance Company Limited (BSE:532659) (IDFC) (Chennai, Tamil Nadu) that is India's largest private equity fund focused on the infrastructure sector, and Emergent Ventures India (Gurgaon, Haryana), which provides advisory services in Clean Development Mechanism (CDM). Green Infra has 100% equity support from IDFC PE, which has committed funds of about $75 million, of which more than $41 million already has been disbursed to the independent power producer and includes the equity component entailed in the recent transaction with BP.

The acquisition of BPEIPL is in line with Green Infra's plans to invest $623 million in 500 MW of renewable power-generation projects across the country by the end of the 11th five-year plan period, 2007-12. According to plans announced by the firm in April, about 300 MW of the proposed capacity would be generated from wind power plants, 100 MW from small-sized solar power projects, and the remainder from small-sized, gas-based and biomass power plants. The overall cost of developing the proposed renewable-power projects is estimated at $1.25 million per MW of installed capacity.

Green Infra operates assets worth more than $155 million, including a project development pipeline of more than 300 MW, as well as 20 MW of assets eligible for generation-based incentives awarded by the Indian government. The firm plans to pursue organic as well as inorganic growth through further acquisitions. IDFC PE estimates that only 7.5% of India's estimated potential in generation of renewable energy has been harnessed so far. The firm also intends to focus on the development of onshore windfarms, which are less expensive than offshore wind power projects.

According to a recent publication titled "Indian Wind Energy Outlook 2009," released jointly by Global Wind Energy Council (Brussels, Belgium) and Indian Wind Turbine Manufacturers Association (Chennai, Tamil Nadu), wind power is expected to address up to 24% of India's power requirements and generate 213,000 green-collar employment opportunities by the year 2030. The sector is expected to attract annual investments of about $9.86 billion during this period.

BP clarified that the sale of its wind assets in India would have no impact on other businesses conducted by the firm in the region. The firm holds a 71% stake in leading automotive lubricant producer Castrol India Limited (BSE:500870) (Mumbai). BP owns a coal-bed methane block in Birbhum, West Bengal, and a deepwater-gas exploration block in the Krishna-Godavari basin. The firm also has been operating Tata BP Solar India Limited (New Delhi) as a joint venture between BP Solar International Incorporated (Frederick, Maryland) and Tata Group (Mumbai) since 1989. The venture manufactures solar cells, photovoltaic modules and solar thermal systems, and exports about 60% of its products primarily to Europe.

In the U.S., BP has interests in six windfarms with a total installed capacity of more than 1,000 MW, and an additional 1,000 MW of wind power projects that are in advanced stages of development. The firm operates the Fowler Ridge I project in Indiana, with a capacity of 400 MW; the Cedar Creek windfarm in Colorado, with a capacity of 300.5 MW; the Sherbino I project in Texas, with a capacity of 150 MW; the Flat Ridge I windfarm in Kansas, with a capacity of 100 MW; the Silver Star I windfarm in Texas, with a capacity of 60 MW; and the Edom Hill wind power project in California, with a capacity of 20 MW.

(there are no exact PEC matches with US windfarms above. There are PECS for new BP projects and expansions)

September 15,2009

Siemens Energy Secures $132 Million

Researched by Industrial Info Resources (Sugar Land, Texas)--Siemens Energy (Erlangen, Germany), a subsidiary of Siemens AG (NYSE:SI) (Munich, Germany), recently secured an order valued at $132 million from OOO RN-Tuapsinskiy NPZ, a subsidiary of NK Rosneft OAO (LSE:ROSN) (Moscow, Russia), for the supply of six industrial gas turbines and generators for generation of steam and electricity as part of the expansion of Rosneft's Tuapse refinery on the Black Sea coast in the Krasnodar territory of southern Russia.

Siemens Energy will supply six SGT-800 gas turbine units of 47 megawatts (MW) each. Three units will be delivered in the latter half of 2010, while the remaining three units are scheduled for delivery by the end of 2012.

RN-Tuapsinskiy is undertaking expansion and upgrading projects to augment the refining capacity of the Tuapse facility from about 110,000 barrels per day (BBL/d) to about 250,000 BBL/d. The refining depth will be enhanced from 56% to 95%, and the upgrade project will allow the refinery to produce products compliant to Euro-4 and Euro-5 standards.

Commissioned in 1929, the Tuapse refinery is Rosneft's oldest refinery and the only Russian refinery located on the Black Sea coast. The facility specializes in the production of motor fuel. Crude oil feedstock for the refinery is procured from western Siberia through the Transneft pipeline system and from Rosneft's oilfields in southern Russia through the pipeline and by rail. Located near the Tuapse oil-loading terminal, the refinery exports nearly 90% of its petroleum products, while the remainder is sold in the domestic market. In 2008, the refinery processed 110,000 BBL/d of crude oil and had an output of 5.11 million tons of petroleum products. Output from the refinery comprised 2.26 million tons of fuel oil, 1.7 million tons of diesel fuel, 1.02 million tons of gasoline and naphtha, and 60,000 tons of other petroleum products.

Upon completion of the expansion and modernization program, the Tuapse refinery is expected to fully cater to the demand for high-quality fuel in the Southern Federal District of Russia. In addition, the Tuapse oil-loading terminal is being upgraded to a trans-shipment capacity of 17 million tons per year, which will augment exports from the refinery.

Siemens Energy previously supplied three SGT-800 turbines of 45 MW each to Rosneft for the development of a 135-MW gas-turbine power plant at the Priobskoye oil deposit in Siberia. Awarded in April 2008, the contract was valued at more than $58 million. The power plant was to be developed in three stages, with the three SGT-800 units to be used in the first 135-MW stage, which was scheduled for commissioning in December 2008. The second and third stages were scheduled to go on stream in December 2009 and April 2010, respectively. In a more recent press release, Siemens reports having received orders from Rosneft for a total of seven SGT-800 turbine units for the power plant. With a power generation capacity of 315 MW, the plant will cater to the power requirements of Rosneft's facilities associated with the oilfield. The facility will operate on a feedstock of petroleum gas and is part of Rosneft's strategy to increase the utilization of associated gas produced in the oil field.

Siemens Energy also supplied three SGT-800 turbine generator units to the Kolomenskoe combined heat and power (CHP) plant in Moscow, which commenced operations in June this year. The facility has an overall efficiency of 83% and supplies 136 MW of electric power and 171 million kilocalories per hour of district heat to Moscow. The power plant was constructed by NaftaSib Energiya OOO (Moscow) under a contract with the government of Moscow.

In January this year, Siemens Energy supplied two SGT-800 gas turbines as part of a $147 million equipment supply contract placed by OJSC Territorial Generating Company #9 for the development of a CHP plant in Perm in the Volga federal district. The project is part of the reconstruction of a 60-year-old CHP plant in the region and is aimed at increasing the thermal capacity of the facility from 57 MW to 180 MW. The new CHP plant is scheduled to go online in 2010.

The SGT-800 unit was launched in 1997 under the name GTX100 and had a power rating of 43 MW. The power rating in simple-cycle applications was subsequently increased to 45 MW and more recently to 47 MW. Electrical efficiency increased from 37% to 37.5%. (In combined cycle power plants, output has increased from 64 MW to 66 MW, and efficiency has increased from 53% to 54%.) The unit offers several benefits, including high efficiency, high reliability, low lifecycle-costs, and operability under extreme climatic conditions. Capable of operating on a variety of fuels including liquid fuel, natural gas, and dual fuel as feedstock, each unit is also equipped with a Dry Low Emissions combustion system that minimizes emissions of nitrogen oxides under a range of operating conditions. To date, Siemens has fulfilled or is currently executing orders for the supply of 29 SGT-800 units to Russia.

September 15,2009

Siif Energies do Brasil

Researched by Industrial Info Resources (Sugar Land, Texas)--Siif Énergies do Brasil (Fortaleza, Brazil), a company that specializes in developing wind power projects, formally inaugurated its 105-megawatt (MW) Praia Formosa windfarm last September 10 in Camocim, a resort town in the northeastern state of Ceará.

The windfarm began operations the last week of August, when units were commissioned after being granted approval by the federal energy authority (ANEEL). The windfarm consists of 50 Sulzon S88 wind turbines, with a nominal capacity of 2.1 MW each.

With a total investment of $276.86 millon, Praia Formosa has become the biggest windfarm in northeastern Brazil, making Ceará the leading state regarding windpower generation. The windfarm, as with many others across the country, was built under incentives from the Program for the Promotion of Alternative Sources of Energy (PROINFA), set up by the Brazilian government early in this decade.

The construction of Praia Formosa made it necessary to build an additional 80 miles of power transmission lines that will send 416,678 megawatts an hour to the electrical grid each year.

September 15,2009

Japan's Nuclear Rokkasho

Researched by Industrial Info Resources (Sugar Land, Texas)--Japan's nuclear reprocessing plant at Rokkasho has suffered further delays and is now scheduled for completion by October 2010. The delays have been caused by problems with the vitrification line at the facility, which now needs to be cleaned and re-inspected. Japan Nuclear Fuels Limited (JNFL) (Rokkasho), the operator of the plant, has applied to the Ministry of Economy, Trade and Industry for permission to change the project's plan.

The delay is one of several that have plagued the controversial site. The work plan for the facility has been amended 14 times since the legislation for the facility was passed, with problems with the vitrification process causing several recent delays.

In the vitrification line, powdered and dried radioactive waste is mixed with molten glass and then permanently stored in special flasks. JNFL intends to begin cleaning the interior of the vitrification unit this month, paying special attention to areas where liquid waste adhered to during earlier tests. After completion of the cleaning process, the insulation resistance of the unit will be restored and tested for effectiveness by December.

At the same time that the cleaning work is carried out, JNFL will inspect more than 200 pieces of equipment that may have been contaminated by the nitric acid contained in the waste used in the latest trial run, and replace parts as may be required. In addition, the furnace used to produce the molten glass in the vitrification process also will be inspected as some ceiling bricks had fallen to the bottom. Any glass residue will be removed, and the furnace will be re-inspected and prepared to restart the test run by July 2010.

In March 2008, JNFL filed a change to the scheduled work plan because of problems with the glass-melting furnace. In November 2008, the government required JNFL to submit a further report following a resumed test to produce vitrified waste, which showed an increase of metal chaff accumulation on the base of the furnace. The delays caused a reduction in the amount of fuel planned to be processed in the first few years of operation. About 160 tons of fuel were scheduled to be processed in the 12 months ending March 2010, but this plan has been shelved. While 320 tons of fuel were to be processed over the subsequent 12 months, now only 80 tons of fuel would be processed during the period.

When fully operational, the Rokkasho plant will be able to process up to 800 tons of used nuclear fuel, equivalent to used fuel produced by 40 nuclear reactors of 1,000 MW each. According to JNFL, this represents 80% of used fuel produced by all of Japan's nuclear power stations. However, there is the far greater problem of the 11,000 tons of spent nuclear fuel that is currently stored onsite at Japanese power stations.

A number of organizations have voiced opposition to the Rokkasho plant, including Greenpeace and the Stop Rokkasho project, claiming that the plant is directly above an active geological fault and could cause an earthquake, releasing highly toxic plutonium (present in the spent nuclear fuel at about 0.9%) from the plant. There also are concerns that the plant could increase the danger to Japan from terrorist attacks.

The original 1989 estimates for the construction of the Rokkasho complex, which includes the high-level nuclear waste facility, a uranium enrichment plant and a low-level radioactive waste landfill, were about $6.9 billion. However, costs have since escalated considerably, and total investment in the facility is now estimated to be more than $20 billion.

September 15,2009

European Energy

Researched by Industrial Info Resources (Sugar Land, Texas)--United Kingdom-based power generation companies are increasingly looking to the opportunities provided by the alternative power sector, and the U.K. government is hoping to entice more activity in this area by launching a £7.2 million ($11.9 million) hydrogen fuel cell competition.

The news comes in the same week that major energy companies and partners announced plans to create an ambitious hydrogen infrastructure in Germany. Energie Baden-Wuerttemberg AG (ETR:EBK) (EnBW) (Karlsruhe, Germany), E.ON AG (OTC:EONGY) (Dusseldorf) and Vattenfall AB (Stockholm, Sweden) have teamed up with Linde AG (ETR:LIN) (Munich, Germany), Daimler AG (NYSE:DAI) (Stuttgart, Germany), OMV Aktiengesellschaft (WBAG:OMV) (Vienna, Austria), Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), and NOW GmbH (The National Organization Hydrogen and Fuel Cell Technology) (Berlin) to create a two-phase memorandum of understanding to make hydrogen-fuelled cars a reality in Germany.

The U.K.'s Department of Energy and Climate Change (DECC) is proposing a competition for up to £7.2 million of funding for companies to develop hydrogen and fuel-cell technology. According to DECC, hydrogen and fuel cells have the potential to drastically reduce carbon emissions because they only emit water and heat as by-products. The energy conversion in fuel cells is more efficient than those of other technologies, including traditional internal combustion engines.

Energy and Climate Change Minister David Kidney said: "The U.K. has the right combination of expertise, ingenuity and determination to bring hydrogen and fuel cell technology to the global market. We're providing real help now to help advance this technology in the UK, keeping us at the forefront of advanced green manufacturing."

In Germany, Phase I will include the evaluation of options for an area-wide rollout of hydrogen fuelling stations nationwide and the definition of a joint business plan agreement, including an analysis of possible public support measures. The goal is to install new hydrogen-fuelling stations by 2011. If successful, Phase II will see the continuation of the rollout of fuelling stations to support the introduction of hydrogen-powered vehicles by 2015.

"By means of hydrogen produced using power from renewable energy sources, we will supply a low-emission fuel and ensure 'green' mobility," said Udo Bekker, member of the board of Vattenfall AG. "In Hamburg we are already putting this into practice. By the end of this year we will start work there on the construction of Europe's biggest hydrogen filling station."

EnBW CEO Hans-Peter Villis said, "Regardless of whether vehicles are refuelled with hydrogen or electricity, it remains a fact that these innovative drive technologies will only be sustainable with a reliable infrastructure and only with CO2-free electricity for hydrogen production or for recharging batteries. EnBW will support both technologies, with its technological know-how in the power generation field and its large proportion of CO2-free electricity."

In Ireland, the semi-state-owned electricity utility, Electricity Supply Board (Dublin), has committed to rolling out a national infrastructure for charging electric cars as part of a 10 billion euro push into the renewable energy sector.

E.ON is already working with Ceramic Fuel Cells in the U.K. to develop micro combined heat and power (mCHP) fuel cells for the budding micro-generation market. They are working together to create a commercial mCHP product by 2012, based on the Gennex fuel cell. E.ON predicts it could ship 100,000 of these cells over a 6-year period.

Electricite de France (EPA:EDF) (Paris, France) has invested £700,000 ($1.15 million) in fuel cell specialists, Ceres Power, which is close to launching its 'electro chemical engine' for mCHP in the domestic marketplace. The company, based in Crawley, Surrey, England, is part owned by Centrica and says its product will use slightly more gas than a regular gas boiler but that it is twice as efficient with regards to carbon emissions and is capable of generating electricity as well.

September 14,2009

OKTA Refinery

Researched by Industrial Info Resources (Sugar Land, Texas)--The 54,000-barrel-per-day (BBL/d) OKTA refinery located in Skopje, Macedonia, is undergoing an overhaul. The plant is owned by Hellenic Petroleum SA (ATH:ELPE) (Aspropyrgos, Greece) and operated by OKTA (Skopje).

The OKTA refinery halted production September 1 for approximately 30 nonproduction days to perform inspection and cleaning of the Atmospheric Distillation Unit, the 14,000-BBL/d Gasoline Hydrodesulfurization Unit, the 4,700-BBL/d Kero Hydrodesulfurization Unit, the 8,700-BBL/d Gas Oil Hydrodesulfurization Unit, the 3,000-BBL/d Light Naphtha Isomerization Unit, the 10,200-BBL/d Catalytic Reformer, the 1,500-BBL/d Liquid Petroleum Gas Recovery Unit, the Monoethanolamine Unit, and the 87-BBLd Sulfur Recovery Unit. All units are expected to be back online September 30.

After performing the necessary inspection, authorities will decide which maintenace work will be performed on the next overhaul, scheduled to take place May 2010. The refinery, which began production in 1982, has a production site of nine units and performs overhauls every year.

September 10,2009

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September 10,2009

La Coruna Refinery - Spain

Researched by Industrial Info Resources (Sugar Land, Texas)--The 119,000-barrel-per-day (BBL/d) La Coruña Refinery , owned and operated by Repsol YPF SA (NYSE:REP) (Madrid, Spain) usually performs programmed shutdowns every four years in the Conversion Area and every five years in the Distillation Area.

La Coruña Refinery is divided into two major areas: Conversion and Distillation, each of them divided into different subareas. The Conversion Area experienced its last general maintenance turnaround in 2008. The 50-nonproduction-day planned shutdown started September 19 and finished November 10. As previously mentioned, this area has a four-year period between each planned shutdown, therefore the next shutdown is expected to occur in 2012. Turnarounds in this area include several units such as the 32,000-BBL/d Fluid Catalytic Cracking unit, the 19,000-BBL/d Vacuum 2 unit, and the Amine 4 unit, among others.

The Distillation Area had its last planned turnaround in 2006; consequently, the next one is scheduled to take place in 2011. During these operations, units such as the 50,000-BBL/d Crude 1 unit and the 18,800-BBL/d Vacuum 1 unit and the will be serviced.

La Coruña Refinery is one of five refineries that Repsol operates in Spain.

September 09,2009

Petroleos de Venezuela S.A.

Researched by Industrial Info Resources (Sugar Land, Texas)--Venezuela's state-owned Petroleos de Venezuela S.A. (PDVSA) (Caracas) has been forced to import gasoline due to expansion work and repetitive unplanned shutdowns at the company's Fluid Catalytic Cracking units, which are in different locations around the country.

The completion of the expansion project on the 51,000-barrel-per-day (BBL/d) FCCU and 18,000-BBL/d Alkylation units at the 127,000-BBL/d refinery in El Palito, Carabobo, which began on March 4 and involves the complete overhaul of all the processing units, is to be completed by the end of September. The units are set to be back online by mid-October. The refinery's 140,000-BBL/d Crude and the 71,000-BBL/d Vacuum and BTX units have been online since June 10.

On August 27, the company was forced to shut down the 130,000-BBL/d Flexicracker unit at its 635,000-BBL/d Amuay refinery due to tubes leaks. As a result, the Alky unit is being kept offline, while the 85,000-BBL/d Crude 1 and 120,000-BBL/d Crude 3 have been placed into hot-oil circulation. The FCC at this refinery previously had been shut down for 11 days in early August due to issues with the reactor.

Completion of the ongoing expansion work at the Cardon Refinery's FCCU and Alkylation units has been delayed several times this year. Maintenance began in mid-February 2008 on the 11,000-BBL/d Alkylation unit to increase the unit's capacity from 1,500 tons per day to 2,400 tons per day. The FCCU project, which began in August 2008, aims to expand the unit's capacity from 11,000 tons per day to 12,800 tons per day, along with several other processing units. The units originally were scheduled to restart in mid-January, and again in March and April; however, authorities have been informed that the restarts again have been rescheduled, now to mid-October because of the lack of workforce and inclement weather.

The 52,000-BBL/d FCCU at the Willemstad Isla, Curacao, refinery remains offline since August 27 after all the processing units at the facility were forced to shut down due to an unexpected power outage. The 45,000-BBL/d Crude 2 A, the 8,000-BBL/d Feed Crack 1 and the Alkylation units also are kept offline. Separately, the cat cracker's fractionator is having its catalyst removed. Main authorities expect to restart the offline units by September 5.

September 08,2009

StatoiHydro - Norway

Researched by Industrial Info Resources (Sugar Land, Texas)--StatoilHydro ASA (NYSE:STO) (Stavanger, Norway) is successfully advancing with the Karsto's Expansion Project 2010, with 35% of the liquefied natural gas (LNG)-related project construction complete.

The project's main objective is to comply with enviromental agreements and new policies, which involve the control of CO2 emissions and ensure the supply of LNG in the region, by revamping the oldest facilities of the existing plant.

The project includes two new sub-projects, including four metering stations for loading from tanks to carriers, and replacement and equipment for mixing gas between the Statpipe and Asgard pipelines.

The main objective of these facility installations is to ensure the right CO2 level in the plant. On August 24, KBR Incorporated (NYSE:KBR) (Houston, Texas), a U.S.-based engineering construction and services company, announced that subsidiary M.W. Kellogg Limited had been awarded two contracts which cover site preparation, foundations and road work in connection with the implementation of these two new sub-projects.

The Karsto processing plant, located in the north of Stavanger and operated by Gassco AS, processes and transports gas and condensate (light oil) from major regions of the Norwegian continental platform.

September 07,2009

China Begins Construction

Researched by Industrial Info Resources (Sugar Land, Texas)--Following the successful commissioning of the southeast Shanxi-Nanyang-Jingmen 1,000-kilovolt (KV) transmission line, the first 1,000-kV ultra-high-voltage AC demonstration transmission project in China, the National Development and Reform Commission (NDRC) approved the second batch of ultra high voltage transmission projects recently, the NDRC announced on August 31.

Among the second batch of projects is the 750-kV Fenghuang-North Urumuqi-Turpan-Hami transmission project in Xinjiang and several 500-kV transmission projects in the Inner Mongolia region and Yunnan. The 750-kV transmission project in Xinjiang involves the construction of 4 transformer substations with a total capacity of 5,500 megavolt-amperes and 1,301 kilometers of transmission line.

The $848 million transmission line from southeast Shanxi to Jingmen via Nanyang was officially commissioned in January this year, which marks the beginning of the construction of an ultra high voltage grid in China. However, this transmission line is located within central China, which doesn't involve the nation's strategy of transmitting power from west to east. Approval of the second batch of ultra high voltage transmission projects will directly promote the west-to-east transmission program into the ultra high voltage age.

The State Grid will invest more than $14.7 billion for the construction of ultra high voltage transmission projects in next three to four years. It is expected that the total investment of the State Grid in ultra high voltage transmission projects will surpass $87.7 billion by 2020, according to Yinbiao Shu, Vice President of the State Grid Corporation of China (Beijing), at 2009 International Conference on UHV Power Transmission held in Beijing on May 21.

As reported, China's power consumption is expected to reach 7.7 trillion kilowatt-hours in 2020, about twice the current value. China's coal, water and wind energies are mainly concentrated in the western region, long-distance and large-scale power transmission from the west to the east will be essential. Construction of the ultra high voltage grid will greatly reduce line loss, improve transmission efficiency and reduce costs.

September 04,2009

BP Oil Discover

People in the oil industry are celebrating quite a discovery.

Drillers in the Gulf of Mexico have tapped into one of the deepest wells in the world. Oil producer BP says it has found new oil in its Gulf of Mexico Fields estimated at about four to six billion barrels worth.

The new oil well is more than 35,000 feet deep. It's expected to rank among the largest petroleum discoveries in the United States.

September 03,2009

Rheinland Godorf Refinery

Researched by Industrial Info Resources (Sugar Land, Texas)--The 195,300-barrel-per-day (BBL/d) Rheinland Godorf Refinery (North), located in Germany and owned and operated by Shell Deutschland Oil GmbH (Hamburg, Germany), is undergoing a shutdown on several processing units. Shell Deutschland Oil GmbH is a subsidiary of Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands).

The plant, which began operations in 1957, is divided into three production areas: MMO (Maintenance, Manufacture, Operations), MMK (Maintenance, Manufacture, Conversion) and MME (Maintenance, Manufacture, Energie).

Rheinland Godorf Refinery halted production on August 31 for 26 days to perform cleaning and maintenance work on the MMO and MME areas. The shutdown will affect the Crude Distillation 1, the Vacuum 1, the Vacuum 2, the HDS (Gasoil), the HDS (Naphtha), the Platformer, the Thermal Gas Oil and the Bitumen Plant, among others. Units are expected to resume operations on September 25. For more details, view related July 24, 2009, news article - Germany's Rheinland Godorf Refinery Offline for Maintenance Turnaround.

September 03,2009

India's NPCIL and South Korea's KEPCO

Researched by Industrial Info Resources (Sugar Land, Texas)--Nuclear Power Corporation of India (NPCIL) (Mumbai), India's nuclear power generating company, has signed a memorandum of understanding with Korea Electric Power Corporation (NYSE:KEP) (KEPCO) (Seoul, South Korea) to conduct joint nuclear power technology studies. The agreement will include the technology licensing and construction of APR-1400 nuclear reactors. The deal also allows for assistance in knowledge transfer of nuclear power technology; maintenance and operations of nuclear power plants; and nuclear fuel and equipment supply.

Earlier, NPCIL signed similar deals with Westinghouse Electric LLC (Monroeville, Pennsylvania), GE-Hitachi Nuclear Energy Incorporated (Wilmington, North Carolina), and Areva SA (EPA:CEI) (Paris, France). The cooperation agreement with KEPCO is expected to open doors for South Korea in India's nuclear power sector. The agreement with South Korea is the fourth nuclear power cooperation agreement signed by NPCIL this year. International energy firms are focusing on developing nuclear power in India after the Nuclear Suppliers Group lifted the 34-year nuclear trade embargo.

KEPCO is emerging as a leading player in the global development and supply of nuclear reactors. The company is also offering its APR-1400 Pressurized Water Reactor, developed from Westinghouse units, to Belarus, Poland, as well as the Middle East and North Africa. Recently, KEPCO acquired a 17% stake in uranium supplier Denison Mines Corporation (TSX:DNN) (Toronto, Ontario) for $68 million. The deal is expected to provide some relief to South Korea's growing nuclear fuel demand, which has a present requirement of 4,000 tons per year of uranium; Denison Mines produces around 1,000 tons per year.

South Korea houses a production facility for APR-1400 at Shin Kori. The country is planning to set up five more manufacturing units by 2015. It has 20 operating nuclear power reactors, and plans to build four other models. South Korea, which derives about 40% of its energy needs from the nuclear power sector, has targeted 27,300 megawatts (MW) of installed nuclear power generation capacity by 2020.

India has 17 operating nuclear power plants, generating about 4,120 MW of power annually. Three reactors with combined capacity of 2,660 MW are under construction. India has envisaged a three-pronged nuclear power development initiative. This includes construction of 28 new reactors, which, on commencing operations, will achieve the target of 40,000 MW of additional power generating capacity by 2020. Contribution of nuclear power to the national grid has been targeted at about 25% by 2050. NPCIL also has commissioned eight 700-MW Pressurized Heavy Water Reactors with indigenous technology. The company is also planning to construct nuclear reactors with capacities of 1,000 MW and more with international cooperation. Despite being a late entrant in this sector, India is expected to attract domestic and international nuclear power investments of more than $27 billion in the next 15 years.

September 2, 2009

Kuwait National Petroleum

Researched by Industrial Info Resources (Sugar Land, Texas)--According to reports published by the Arabic daily newspaper Al-Watan, state-run Kuwait National Petroleum Company (KNPC) (Safat, Kuwait) may retender contracts to set up the Al Zour refinery near the Kuwait-Saudi Arabia border, after canceling the earlier tender issued in March 2009 because of parliamentary opposition. The paper mentions that the retendering process is likely to start after Kuwait's Supreme Petroleum Council makes an announcement about the project. A consultancy firm is likely to be hired to assess the project under the supervision of the Central Tenders Committee. However, most sources view the project as cancelled.

The 615,000-barrel-per-day (BBL/d) project was first announced in 2005 when Kuwait's refining capacity was 900,000 BBL/d. The original cost estimate of the project was about $6 billion, but this soon increased to an unexpectedly high $15 billion following the rapid increase in demand and refining capacity worldwide. The refinery was scheduled to begin operations in 2012 and would have increased the country's refining capacity to 1.4 million BBL/d combined with upgrades to two other refineries. The Al Zour refinery, when completed, would have been the world's fourth-largest refinery and would have supplied low-sulfur fuel oil to the nation's power plants.

KNPC proceeded with front-end engineering and design (FEED) work and the selection of project managers and contractors. Five companies were awarded engineering, procurement and construction (EPC) contracts worth $8.4 billion in May 2008. However, the project faced a great deal of political opposition. Lawmakers alleged several tender violations, including the award of a $2 billion project management contract to Fluor Corporation (NYSE:FLR) (Irving, Texas) without a tender. A few members of parliament are believed to have questioned the feasibility of the project and the procedures that were followed in awarding the contracts. In March 2009, KNPC informed the companies that had secured contracts that the tender had been cancelled, although the decision to set up the project had not been cancelled. KNPC cited the fact that an independent body had declared that the project was unfeasible as reason for the cancellation of the tender.

The cancellation of the tender came as a shock to all concerned parties, especially as $1 billion had already been spent on the project. Cancellation charges could raise this amount, bringing to prominence the immense difficulties in making decisions about such large-scale projects.

In May 2008, EPC contracts were awarded to a consortium of JGC Corporation (TYO:1963) (Tokyo, Japan) and GS Engineering and Construction Corporation (SEO:006360) (Seoul, South Korea), which was awarded a $4 billion contract to provide the main manufacturing units of the refinery. SK Energy Company Limited (SEO:096770) (Seoul) was awarded a $2 billion contract to provide the refinery's subsidiary units. Daelim Industrial Company Limited (SEO:000210) (Seoul) was awarded a $1.184 billion contract to provide the refinery project with tanks. Hyundai Engineering and Construction Company (SEO:000720) (Seoul) was awarded a $1.12 billion contract to equip the project with the necessary offshore facilities. All of these contracts remain cancelled.

Income from oil accounts for 95% of the public revenues of Kuwait. According to 2008 estimates, Kuwait had a refining capacity of about 2.2 million BBL/d and about 100 billion barrels of oil reserves. There appears to be numerous doubts about the accuracy of the quantity of oil reserves in the country.