China firm to build low grade coal plant in Australia


China National Electric Equipment Corporation (CNEEC) has won a contract to build a $750m coal fired power station in Australia.

The Latrobe Valley power station near Melbourne in Victoria will use new technologies to enable it to run on low-grade coal, which is often left unused. The state-owned enterprise, which derives 80 per cent of its business from overseas projects, hopes the contract will lead to its involvement in other such projects around the world.

Zhao Ruolin, president of CNEEC, said the new power station could be a major breakthrough for the power generating industry. “It has major implications for the entire industry. We have already got a lot of interest internationally in this development,” he said.

Zhao said if the low-grade coal could be used, it would have major significance for the nation. “China has a lot of low grade coal which is often left in the ground.”


Bangladesh signs nuclear agreement with Russia to cover aching power gap


Bangladesh has agreed that Russia will build a 1 GW nuclear power station at Rooppur, 200 km from the capital Dhaka to combat growing power shortages.

A cabinet meeting chaired by prime minister Sheikh Hasina approved the construction of the $2bn plant, from which power will begin to flow from 2014. Bangladesh has almost 60 power plants, most of which are natural gas or coal fired and are decades old. The country’s natural gas reserves are falling and its coal fields remain unexploited.

It is estimated that Bangladesh, which has peak demand of 5.5 GW, has a structural power shortage of 2 GW.


Indonesia loan to speed up coal plant


Expansion of Indonesia’s Paiton coal fired power plant will go full scale now that the project has a financial agreement behind it.

Work to enlarge the 815 MW supercritical pressure power station had already begun but will now accelerate because owner Paiton Energy will receive a $1215m loan for the scheme, which is 150 km southeast of Surabaya.

The agreement involves Japan Bank for International Co-operation and eight other banks.

Indonesia’s state-owned utility PT PLN has signed a 30 year power purchase agreement to buy the electricity from the plant, which will begin commercial operation in 2012. Mitsubishi Heavy Industry’s Nagasaki works in Japan will supply the steam turbine and boiler.


AES secures agreements for 1200 MW Vietnam coal plant


AES has secured agreements concerning its 1200 MW coal fired plant Mong Duong II in Vietnam.

The US firm has signed a power purchase agreement with state utility EVN under which capacity payments and most payments for operations and maintenance at the facility will be paid in dollars.

The agreement with EVN also allows a fuel cost pass-through denominated in the local currency.

AES will receive locally sourced fuel for the power station from state-owned Vietnam National Coal-Mineral Industries Group. AES has also secured environmental permits and is progressing with agreements for financing and engineering, procurement and construction.

Mong Duong II will begin operation in 2014. AES expects to reach financial close in 2011, when it will invest equity of $400m.


India’s Orissa eyes big capacity boost


A power shortage in Orissa has led the government of that Indian state to negotiate with five companies to build 4.8 GW of power stations.

If the deals go ahead BGR Energy Systems will construct a 1320 MW plant in the Bhapur; JR Powergen Private will build a 1980 MW plant at Kukudabahal; Adhunik Power and Natural Resources a 1320 MW plant in the Birmaharajpur; Maa Durga Thermal Power Company a 60 MW plant in Tangi in the Cuttack district; and Vijaya Ferro and Power Private a 120 MW plant at Tulakhamar Kalahandi.


Rolls-Royce, L&T forge nuclear pact


Rolls-Royce will join India’s Larsen & Toubro (L&T) to bridge the gap in the supply chain for India’s new build nuclear programme.

In the first phase of their co-operation the companies will work on instrumentation and controls. Other areas of co-operation will include engineered products and systems, light water reactor components, engineering services, plus reactor support and waste management.

The agreement to cooperate brings together the experiences of both companies. Senior executive vice-president and board member M.V. Kotwal said the deal will “tap rapidly emerging opportunities in India, the UK and the rest of world”.




China: Beijing is encouraging nuclear power companies to partner foreign firms to build reactors overseas. China National Nuclear president Sun Qin said he expects local nuclear technology will become globally competitive.

China: Siemens will supply spare parts and maintenance services for its four SGT5-2000E gas turbines that will operate in the four 250 MW combined cycle units at the $556m Ningxia East power plant, due for completion in 2012.

China: GE and China Power Engineering Consulting Group Corporation will carry out a feasibility study to advance the use of IGCC technology in the country. In the study’s initial phase they will evaluate the cost and performance of the design of a plant that uses it.

India: Substation builder and operator HVPNL has ordered a 400 kV substation and associated equipment from ABB India for R630m ($14m). The Dhanonda plant in Haryana state will accept electricity from new power stations being built in the region.

Indonesia: State utility PLN will spend up to Rp3.7Tn ($410m) to improve the T&D systems in the capital, Jakarta, to prevent blackouts there. The project will include a 150 kV underground cable and four substations.

Indonesia: An consortium of Ormat Technologies, Medco Energi, Itochu and Kyushu Electric Power has reached an agreement with state utility PLN to raise the sold price of the power generated by a 300 MW geothermal plant in Sarulla, North Sumatra to 6.79 US cents per kW.

Laos: Thailand’s CH Karnchang will set up subsidiary Xayaburi to be the main contractor for a planned 1280 MW hyropower station in Xayaburi province. If the project goes ahead it will cost $2bn.

Philippines: Global Power Panay Philippines subsidiaries will build two 17.5 W biomass power station in Mina, Panay Island, and Nueva Ecija in Luzon. Local agricultural waste will fuel the plants.

Philippines: San Miguel Energy Corporation has won a $870m bid to manage the 1200 MW Ilijan natural gas fired power station in Batanga. The deal will see the country reach its goal of privatizing 70 per cent of its power output.


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