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Daily Energy News

Policy & Regulatory

The Philippines Ministry of Energy has announced that oil companies will be allowed to commercialize the more pollutant (and cheaper) Euro-II compliant automotive diesel oil, in an attempt to reduce the effect of rising international fuel prices on the national inflation rate. The motion shifts the country from a Euro-IV standard stated by the Environment department in 2016 to reduce pollution, since Euro-IV fuels have sulphur content of 50 ppm, compared to 500 ppm for Euro-II fuels.

India plans to triple its ethanol production from 1.4 to 4.5 billion liters by 2022, in order to reduce oil imports by INR 12,000 crore (US$1.7bn). The Indian government has adopted a national policy enables the blending of ethanol produced from damaged food grains, rotten potatoes, corn and sugar beet. The country plans on adopting a B10 target (10% ethanol blending) by 2020 and a B20 (20% blending) by 2030.

The next Brazilian A-6 auction for renewable energy projects to be held on 31 August 2018 will offer 1 GW of new wind capacity. Potential investors were expecting a 1.5 GW account for this bid, but a lower volume will be awarded due to the lower demand induced by the economic crisis.

The Central Java province of Indonesia has set a 21% target for renewables in total energy demand, 2% lower than the national target of 23%. The regional administration plans to issue a bylaw to adjust the gap between the targets.

Infrastructure & Investments

The Danish energy group Ørsted (formerly DONG Energy) has reached a milestone in the construction of the 1,200 MW Hornsea offshore wind project in the United Kingdom. The group has installed the four substations, including the first offshore reactive compensation station in the world. The €3.4bn wind park consists of 174 turbines rated 7 MW each. Construction started in January 2018 and the project is expected to be fully commissioned in 2020.

Blockchain company Soluna plans to develop a 900 MW wind project to supply electricity to a future computing centre in Dakhla in the Morocco-administered Western Sahara region. The first phase worth US$100m would install 36 MW, with construction starting in 2019 and commissioning in 2020. The entire project spanning over 150 km2 would be completed in 2024 at a cost of up to US$2.5bn.

The Canadian Nuclear Safety Commission (CNSC) has granted another 10-year license - from 1 September 2018 to 31 August 2028 - to the Ontario Power Generation's (OPG) Pickering nuclear power plant in Ontario (Canada). Pickering 1 and 4 are scheduled to stop operations in 2020, and Pickering 5 to 8 in 2024. The new license includes post-shutdown activities and stabilisation work until 2028.

Russian energy group Novatek has begun shipments from the second 5.5 Mt/year LNG train of its Yamal LNG project in Yamal peninsula in Russia. The train is already working at its nameplate capacity and has produced more than 250 kt of LNG during its commissioning.

Energy Markets

South Korean conglomerate Daewoo has made a gas discovery in Block D-12 in the Bay of Bengal in Bangladesh, adjacent to Myanmar’s Block AD 7, in a basin that is shared between Bangladesh and Myanmar. Bangladesh could hold five prospective structures that would near three gas fields in Myanamar having 8 tcf (226 bcm) of reserves. The five structures could be moderate gas fields.

Forecasts

According to the Indian Ministry of New and Renewable Energy (MNRE), India is on track to reach 100 GW of installed solar capacity by 2022. A total of 23.1 GW of capacity were already installed in July 2018, 10 GW were under construction and tenders were issued for another 24.4 GW. The National Institute of Solar Energy estimates that India's solar power potential can reach 748 GW.