Energy
GE to spend another $10 billion on energy research by 2020
LONDON – General Electric Co plans to intensify research focusing on complex energy projects such as waterless fracking and gas turbine efficiency by earmarking an additional $10 billion through 2020 for its “ecoimagination” budget.
The new spending is set to be announced by Chief Executive Jeff Immelt on Monday.
The research budget shows how reliant GE has become on the energy industry, its fastest growth area, as it works to become a dominant supplier of equipment and services to oil, natural gas and alternative power companies at a time when the United States undergoes an unprecedented energy boom.
While GE doesn’t forecast what it plans to spend on its main capital budget in future years, the new commitment gives investors a clue as to what the company’s priorities will be into the next decade.
The “ecoimagination” project, which was formed in 2005 to broadly focus on sustainability and other environmental issues and has cost nearly $15 billion, had been set to expire next year. Executives are extending it to 2020 with the additional $10 billion.
While the overall goals of the project will remain, a larger percentage of the funds will go to energy-related projects, an acknowledgment of where Immelt and other executives see the future of the company Thomas Edison founded in 1892.
“We have a very broad, long-standing commitment to energy,” said Mark Little, GE’s chief technology officer and head of global research.
NEXT GENERATION FRACKING?
As part of the new focus, GE will study with Norway’s Statoil how to use carbon dioxide (CO2) in hydraulic fracturing, the process commonly known as fracking which mixes more than 2 million gallons of water per well with chemicals and sand to extract oil and natural gas.
The energy industry’s copious use of water has put it into conflict with some residents in Texas, New Mexico and other arid states, and many companies have been trying to find ways to curb fracking’s use of water, looking at using CO2 and even propane.
While CO2 fracking is not economical today, the companies hope to find a way to collect CO2 at the wellhead, recycle it, use it to frack again, then collect the CO2 and repeat the process, Little said.
“Ideally, we’d have a virtuous cycle going on,” he said.
A key challenge will be to help the CO2 carry proppant, a type of sand that holds open the cracks in rock so oil and natural gas can escape, much like water does in current methods.
GE also wants to boost the efficiency of its natural gas-powered turbines to 65 percent from today’s 62 percent. The company believes its existing research into jet engine efficiency could help significantly reach this goal, Little said.
COMPRESSED NATURAL GAS IN A BOX
The company plans to study how to make wind turbine blades cheaper and more efficient through the use of different composite materials, as well as expand its “CNG In A Box” product, which lets natural gas producers compress the fuel directly at the well to be used locally in engines.
The “ecoimagination” project is part of GE’s larger research and development budget, worth roughly $5 billion to $6 billion per year.
The project began in 2005 with a goal to spend $5 billion on efficiency projects within five years and was renewed in 2010 with a goal of spending an additional $10 billion by 2015. So far, it has brought in $160 billion in revenue by creating new products and saved $300 million on water and emissions costs, GE said.
A movement into energy is not new for GE, which last year bought Lufkin, aiming to sell the company’s oilfield pumps in international shale fields and collect data to help oil producers become more efficient.
GE has also become of the world’s largest wind turbine manufacturers since it bought Enron’s wind business in bankruptcy.
– REUTERS
Energy
BP, Trafigura, Vitol Lead Global Offtake Of Dangote’s Refined Products
The Lagos based, 650,000-barrel-per-day Dangote Petroleum Refinery and Petrochemicals (DPRP) might be struggling for real acceptance in Nigeria’s domestic market, but the international markets appear to have embraced it with both hands.
As at Wednesday, November 6, 2024, three global oil dealers account for as much as 75 percent of refined products being lifted from the DPRP.
In a development touted as reshaping petroleum trading between Africa and Europe, Vitol Group, Trafigura Group, and BP Plc were listed by Bloomberg as the dominant buyers of fuels from the DPRP.
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Going by the data, it can be seen that the three global dealers accounted for the bulk of the plant’s shipments since flows began ratcheting up around the middle of 2024.
The report was backed by data from Precise Intelligence, a new oil-and-gas trading analytics firm based in Geneva.
The data showed refined products offtake from February 27 to October 10 with other customers, and indicated that the Nigerian market took 25 percent of total fuel purchases from the DPRP in the period under review.
Recall that the DPRP on starting operations, kick-started the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS) (petrol).
The management of the DPRP has been consistent in expressing confidence that as soon as it becomes fully operational, it would peak at processing up to 650,000 barrels a day of crude into products including gasoline and diesel.
The implication is that at its peak, the DPRP would be the biggest single plant in Europe or Africa, conferring on it the capacity to reshape the regions’ oil and fuel trading.
Oil industry pundits note that the coming on stream of the DPRP has already trimmed a glut of Nigerian crude.
Analysis of the report showed that the refinery has loaded almost 6 million tons of fuel since starting up.
This is equivalent to almost 45 million barrels, loading rates averaged about 35,000 tonnes a day in October, its data showed.
The DPRP itself said late last month that the refinery had reached processing rates of about 420,000 barrels a day of crude.
Stakeholders are paying close attention, which sees the composition of fuel cargoes loading from the DPRP closely watched because it offers clues into where the refinery is at in terms of starting up different processing units.
On the products sold, the figures show that automotive gas oil — commonly known as diesel — is the largest cargo type being lifted, accounting for the highest proportion of shipments. This is followed by fuel oil, which ranks second in terms of volume.
Together, these two products make up more than 60 percent of the total output being collected from the plant.
Other significant fuel types being processed include gasoline, which is used for cars and other light vehicles, and jet fuel, primarily utilised by the aviation industry for aircraft.
Energy
Minister of Power, Adelabu Champions Mini-Grids Amid Northern Power Crisis
In the wake of a prolonged power crisis impacting Northern Nigeria, Minister of Power Adebayo Adelabu visited the Zawaciki 1MWp mini-grid project in Kano, underscoring the potential of decentralized renewable energy solutions to alleviate regional power shortages.
The project, operated by Bagaja Renewables, provides daytime electricity to the Gida Dubu community, offering a vital source of power as the region faces widespread blackouts.
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Sadiq Zakari, Managing Director of Bagaja Renewables, welcomed the Minister to the facility and highlighted the critical timing of the visit.
“Bagaja Renewables had the distinct honor of welcoming the Honorable Minister of Power to the Zawaciki 1MWp interconnected mini-grid,” Zakari said.
“This visit comes at a critical time, as Northern Nigeria endures a prolonged blackout, underscoring the urgent need for alternative power solutions.
The Zawaciki mini-grid has been instrumental during this crisis, providing at least 9 hours of daytime electricity to the Gida Dubu community, demonstrating the potential of renewable energy in addressing the region’s energy needs.”
Minister Adelabu praised the Zawaciki project as a model for interconnected mini-grids nationwide, noting its role as a sustainable solution for communities grappling with unreliable power supply.
“The Honorable Minister expressed admiration for the Zawaciki project, recognizing it as a viable proof of concept for interconnected mini-grids across Nigeria,” Zakari stated.
“He emphasized the importance of such initiatives and called on state governors and other key stakeholders to support efforts to decentralize and strengthen the nation’s power infrastructure.
By backing projects like Zawaciki, stakeholders can play an instrumental role in reducing reliance on the national grid and ensuring a more stable power supply for local communities.”
Zakari underscored the transformative potential of private-sector renewable energy projects in Nigeria’s power landscape.
He said, “As we have witnessed here at Zawaciki, private-sector-driven renewable energy solutions can transform Nigeria’s energy landscape. With the right policies and support, we can empower communities and enhance energy resilience, even in times of national power instability.”
In addition to the Zawaciki project, Bagaja Renewables is developing several renewable energy initiatives across Northern Nigeria. Among these are:
Barhim Estate, Katsina: A residential power initiative aimed at expanding energy access for households in the region.
Kura-Karfi Commercial Cluster, Kano: Focused on delivering clean and reliable power to commercial areas, this project aims to support local businesses and stimulate economic growth.
Kafin Hausa, Jigawa: With site fencing completed, Bagaja Renewables is preparing to begin technical design and engineering work for a mini-grid in Kafin Hausa, slated to start construction soon.
Zakari said, “These projects represent Bagaja Renewables’ unwavering commitment to building a resilient, decentralized, and renewable-powered energy future across Northern Nigeria.
“Bagaja Renewables is dedicated to collaborating with the government and stakeholders to scale up renewable energy solutions that will support communities, industries, and essential services.
“We believe that decentralized power generation is the future for Nigeria, and we are eager to contribute to a sustainable, reliable, and inclusive energy system for all.” he added
Energy
Power Restored In Four Northern States After 10-Day Blackout
Power has been restored across Plateau, Bauchi, Gombe, and Benue States, bringing relief to residents who endured a 10-day blackout.
The Jos Electricity Distribution Company confirmed that electricity was reinstated around 7:20 p.m. on Wednesday, prompting celebrations in Jos, the Plateau State capital, and other affected areas.
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The prolonged outage was caused by the tripping of a major 330kV transmission line between Benue and Enugu states, leaving several northern states without power.
The blackout severely impacted daily life and economic activities, with residents expressing frustration over the disruption to businesses, healthcare services, and personal livelihoods.
In response, President Bola Tinubu took swift action, summoning Minister of Power Adebayo Adelabu and National Security Adviser Nuhu Ribadu to address the crisis.
Presidential Adviser Bayo Onanuga disclosed on Monday that President Tinubu directed the Ministry of Power and relevant agencies to expedite restoration efforts.
“President Tinubu is deeply concerned about the reports of vandalism and deliberate destruction of essential power infrastructure,” Onanuga said in a statement.
“The President has tasked TCN engineers with bringing immediate relief to the affected states and implementing a long-term solution to prevent future outages.”