Development

Opportunity of the Week: CSSC awards machine tool contract to European companies

CSSC Marine Power Co, a subsidiary of China State Shipbuilding Corporation (CSSC), has recently purchased a variety of production equipment via international tenders, said the tender agent. CSSC chose Fives Landis Ltd’s crankshaft grinder, IMT Intermato SpA’s CNC turn-mill center, Hexagon AB’s gantry coordinate measuring machines, and horizontal machining center from Juaristi TS Comercial SL, said Huang Pianpian from Beijing Rui Chi Fei Si Tender Co, the appointed agent representing CSSC in this case.

Those orders will be delivered within an eight to 18 months period at various Chinese ports such as Nanjing and Anqing.

CSSC is strengthening its position in China’s engine market even with the current low market demand. In July, it acquired a 30% stake in two-stroke JV Winterthur Gas & Diesel (WinGD) from its partner Wartsila Corporation; following the transaction, CSSC owns 100% of WinGD. Market research shows that in China’s medium-speed diesel engine market, Weichai Heavy Machinery and CSSC Marine Power take up a 58.9% market share. In October 2015, CSSC Marine Power renewed the contract with MAN Diesel & Turbo for another 10 years of production of four-stroke medium speed engines. In May 2016, the company’s 6S60ME low-speed diesel engine started operation. The latest designed model is the largest diesel engine constructed by CSSC Marine Power, which weighs approximately 390 tons.

 

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AVR Vidyuth looking for foreign investors for developing 225MW gas-based power plant

AVR Vidyuth Private Limited is planning to start discussions with foreign investors to raise funds for developing a 225MW gas-based power plant at Adavipolam in Yanam district of Puducherry, said Vishnu Vardhan Rao, MD, AVR Vidyut. The company is also looking for a foreign EPC contractor to invest in the project, he added.

Rao said that the proposed project has been approved by the government of Puducherry. Land required for the project has also been procured. Once a foreign investor and an EPC contractor is finalized, AVR Vidyuth will approach the government of Puducherry for allocation of gas required for the project, he added.

The total cost of developing 1MW of gas-based power will be about USD 750,000 (Rs. 5 crore), said Ashok Kumar, Administrator, AVR Vidyuth. Based on this metric, the total project investment (TPI) of the 225MW power unit will be around USD 168.7m (Rs. 1125.8 crore).

Project equipment would typically include air compressors, gas turbines, steam generators, combustion chambers, condensers, fuel burners, jet pipes and propelling nozzles, fuel valves, and synchronous generators, among other equipment.

 

 

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IIICorp Opportunity of the Week: Sonnedix gets loan approval from Green Climate Fund for 143MW solar project in Chile worth USD 265m

The South Korea-based Green Climate Fund recently approved a loan worth USD 49m to a large-scale solar PV project coming up in the Atacama desert in northern Chile implemented by US-based independent power producer (IPP) Sonnedix. Sonnedix, founded in 2010, has raised over USD 554m in equity to date from founders, management, private, and institutional investors. Sonnedix is a JV owned and controlled by Sonnedix Global Holdings Ltd and IIF Solar Investment Ltd (JPM IIF), an entity controlled by the Infrastructure Investment Fund.

The project will have an installed capacity of 143MW (likely AC-rated, while DC-rated capacity will be around 170MW). The project will have the capacity for expansion up to 250MW. The project is expected to require a total investment of USD 265m, with the USD 49m loan being disbursed through the Development Bank of Latin America (CAF). The project will start selling electricity at USD 4.4 per kWh from 2017 onward. This tariff is however expected to increase gradually to reach USD 8 per kWh by 2035.

The EPC and operation and maintenance (O&M) for the project is by Biosar Energy SA, which was acquired in 2012 by the Greece-based AKTOR S.A.

To connect the Atacama solar PV plant power substation, 45.5km of transmission lines and grid connection equipment at the Lagunas substation will be developed by Transelec SA under a build-own-operate-transfer (BOOT) contract and repaid under a 25-year lease with fixed payments and repurchase option of USD 1.

Recently, the Chile government approved legislation that will create a new interconnected transmission network to be established alongside a new independent operator. This will ensure that power generated from renewable energy projects located in remote regions of the country is supplied to population centers.

 

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IIICorp Opportunity of the Week: Unitel’s two-pronged strategy gains momentum in Southeast Asia, lands PT Pertamina catalyst systems deal

Unitel Technologies is supplying Indonesian state-owned oil firm PT Pertamina with its proprietary Octave catalyst research system under the terms of a deal signed recently, according to CEO Serge Randhava. Meanwhile, the company is laying the groundwork to capitalize on a major natural gas-related opportunity in the region.

The deal with PT Pertamina is likely to be worth about USD 2m for the Matawan, New Jersey-based specialty process engineering firm that designs and builds pilot- and full-scale oil and natural gas processing facilities. In March, the CEO told this news service that his firm was in talks to supply Octave systems to multiple oil companies in Southeast Asia.

Unitel’s revenues typically do not exceed USD 15m annualy because it’s primarily a technology firm and sub-contracts much of the engineering work required for its projects to other companies.

Regional LNG opportunities

Randhava said that the opportunity to sell catalyst research systems in Indonesia, and Southeast Asia at large, pales in comparison to opportunities to sell its process engineering services and technologies to the region’s liquefied natural gas (LNG) industry.

Unitel was selected earlier this year by the Korea Gas Technology Corporation (KOGAS) to conduct the front end engineering and design work needed to commercialize a “small-scale LNG business opportunity,” according to a press release from January. KOGAS, the world’s largest importer of LNG, is aiming to design, build and operate multiple 200 TPD LNG mini-plants that will create a virtual pipeline to supply product for local transportation fuel and power generation applications, Randhava said. Eventually, the Korean company would like to build the small-scale plants in countries in need of critical natural gas infrastructure, he said.

“The opportunities to develop small-scale LNG plants should be of great interest to countries like Vietnam, Malaysia and Indonesia,” Randhava said. “I’m excited about that; [KOGAS] is aggressive.”

One application for the small-scale LNG technology KOGAS is developing might be at the Vietnam Block B development, Randhava said. PetroVietnam is aiming to produce 107bn cubic meters of gas and 12.65 million barrels of condensate from offshore Block B, of which 5.06bcm are expected to be brought onshore per year from 2020 to 2040. The fuel is expected to be used to power plants in the Kien Giang and O Mon district of Can Tho city. The initiative entails an investment of about USD 6.08bn.

Randhava noted that the company plans to move onshore only about half of the gas it is producing from Block B. He said that it is likely planning ot either make LNG in small-scale plants onshore for distribution throughout the country, or convert it into dimethyl ether for use in Vietnam and neighboring countries.

Opportunity Size: 15m USD

 

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IIICorp opportunity of the week: GMH seeks funding for proposed USD 800m Tamil Nadu-based TPP

General Mediterranean Holding (GMH) is looking for financiers for its proposed 1030MW merchant thermal power plant at Kattuppalli Village in Thirvallur district in Tamil Nadu (TN), according to Justin Paul, the President Technical at Chennai Power Generation Limited (CPGL), the Indian subsidiary of the Luxembourg-based company.

“The project is awaiting environment clearance, land acquisition, and fuel-supply agreement for the power plant and we will look at financial closure of the plant in the first quarter of 2018,” Paul told this news service.

The company president did not provide a timeline when the EPC tenders would be invited but said that the bids would be invited soon after the environment clearances and fuel supply agreements are in place.

The 1030MW power project had experienced difficulties when North Chennai Power Company Limited refused to spare 70 acres of land to CPGL for the plant due to a reported overlap in location of the two companies’ power plants. The terms of reference (ToR) for the project were initially issued in 2009, however these expired in 2013 due to the inability to resolve the land issue. A fresh application to issue the ToR was submitted in September 2015, which was approved in early June this year.

The total project investment (TPI) comprises USD 788.5m (Rs. 5245.6 crore) and the facility will source coal from Indonesia and Australia. It will consist of two 515MW steam turbine generator (STG) sets and two pulverized coal-fired subcritical boilers. The balance of plant (BoP) package will comprise the coal and ash handling plant, water treatment plant, desalination plant, compressed air system, electrical controls, instrumentation and control, and chimney, all of which cost USD 639.3m.

The total plant area will cover about 319 acres of land, including an ash pond area, along with 23 acres within Coastal Regulation Zone (CRZ) area that will be utilized as corridor for sea water pipeline and for coal conveying at a total cost of USD 27.5m.

There will also be a requirement for the installation of electrostatic precipitators (ESPs) and flue gahis weeks desulfurization (FGD) systems however these will be decided based on the fuel supply agreement signed.

“If required, we will invite separate bids for the construction of the FGD plant,” said Paul.

 

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IIICorp Featured Opportunity of the Week – China Three Gorges, SGCC in the frame to buy stakes in Brazil’s Santo Antônio do Jari hydropower project

Odebrecht Energia, a unit of Brazilian construction major Odebrecht SAGrupo Cemig, and Construtora Andrade Gutierrez could be negotiating the sale of their respective stakes [totaling 51% at about USD 2.6bn (CNY 17bn)], in the Santo Antônio do Jari hydropower project.China Three Gorges Corporation (CTG) and State Grid Corporation of China (SGCC) are two of the candidates to pick up the stakes.

The Santo Antônio do Jari project is built on the Madeira River in Rondônia. It has an installed capacity of 3568MW, when all the turbines will be installed, which is estimated to be around November 2016.

“The Brazilian entities reach out to CTG and SGCC, and expect to sell the stakes to Chinese corporations. They are also in talks with the companies from other countries,” said Li Chang, a source from China’s Economic and Commercial Counsellor in Brazil, a part of the People’s Republic’s Ministry of Commerce.

“This deal is in process. But they decline to share more information with us,” Li added.

 

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Exclusive to IIICorp: Japanese firm IBIDEN Co Ltd shows interest in BHEL’s emissions contract

ibidenTokyo-based IBIDEN Co Ltd is among several companies, including Chinese firms, that have submitted their expressions of interest (EOI) to state-owned Bharat Heavy Electricals Limited (BHEL) for a proposal to design and engineer the latter’s emission control systems for power plants and its integration with the boilers on a project-to-project basis. A BHEL official also told IIICORP that the EOI is applicable to all BHEL power plants across the country. According to its website, the power major has 20,000 MW installed capacity and going by IIICORP metrics, the contract could be worth upwards of USD 400m. The EOI comes in the wake of recent emission norms laid down by the Indian Ministry of Environment, Forests and Climate Change (MoEFCC).

IBIDEN Porzellanfabrik Frauenthal GmbH, a subsidiary firm majority owned by IBIDEN Co Ltd, manufactures the CERAM brand of catalyst and industrial honeycombs at its facility in Frauental, Austria. CERAM has developed into a global supplier of catalysts and industrial ceramics and currently has customers in more than 40 countries with over 400 employees. In the course of its international expansion, the company has set up subsidiaries in the United States and South Korea. The introduction of progressive environmental legislation around the world is a key driver of the CERAM´s business activities, says its website. The company’s environmental management system ensures responsible use of natural resources and systematically reduce its wastewater, solid waste streams, and atmospheric emissions.

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