A planning application to Lancashire County Council to drill, hydraulically fracture and test the flow of gas from up to four exploration wells at its site at Preston New Road will be made before the end of this month.

A separate planning application for a second proposed exploration site, at Roseacre Wood, will also be submitted to the Council a few weeks after the Preston New Road application, according to a Cuadrilla statement yesterday.

“This application could be a really important milestone for Lancashire and the UK as we seek to unlock Lancashire’s shale gas potential,” said Cuadrilla chief executive Francis Egan.

“The development of the shale gas industry has the potential to bring significant investment, community benefits and opportunities for local people and the North West and UK economies.”

Exploration of the Preston New Road and Roseacre wood sites was first suggested by Cuadrilla in February, having decided to press ahead with the development of just these two sites on Lancashire’s Fylde coast rather than the six announced in summer 2013.

Previous Cuadrilla operations in the Fylde coast area have been linked with causing seismic events, with fracking at its Preese Hall blamed for two minor earthquakes in Blackpool in 2011. These led the government to suspend all shale oil & gas development in the UK until December 2012.

As part of the the planning application for Preston New Road, Cuadrilla announced yesterday that plans will also be submitted to install a network of seismic monitoring stations within a 4km radius of the proposed exploration site.

Environmental campaign group Friends of the Earth (FOE) accused the government and Cuadrilla of colluding to promote fracking ahead of the two planning applications, and warned that the operations would damage the Fylde coast environment.

“The public is rightly concerned that fracking causes more problems than it solves – there are risks for our water supply, our health and the beautiful Fylde environment, and it won’t lower energy bills or create anywhere near as many jobs as renewables,” said FOE North West campaigner Helen Rimmer.

Entergy Louisiana, LLC signed a 10-year commercial and contractual agreement with PennTex North Louisiana, LLC to supply up to 25 MW of electric power to PennTex’s Lincoln Parish power plant near Arcadia, La., beginning in March 2015.

In March 2014, PennTex announced plans to construct a natural gas processing plant at a new site in Lincoln Parish, which is expected to be completed and operational by March 2015. Once commercially operational, the new facility will process natural gas to remove natural gas liquids and deliver the residue gas to the intrastate and interstate pipeline systems.

As a strategic joint venture between PennTex and producers in the northern part of the state, PennTex NLA aims to develop midstream infrastructure in support of growing production from its partners and other producers in the area. PennTex is in discussions with producers regarding additional expansions to its facilities as well as additional midstream services to support regional producers.

Entergy’s Louisiana utility companies provide electric service to more than one million customers through the operating companies Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. and natural gas service to nearly 93,000 customers in the greater Baton Rouge area through Entergy Gulf States Louisiana. With operations in southern, central and northeastern Louisiana, the companies are units of Entergy Corp.

Entergy Corp. is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with about 30,000 MW of electric generating capacity, including more than 10,000 MW of nuclear power, making it one of the nation’s leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11 billion and about 14,000 employees.

Despite growing global interest in Kenya’s oil and gas industry, its first competitive licensing round has been postponed to at least Q4 2014; however, this delay could serve as a long-term benefit for the country’s economy, as well as its oil and gas industry, says an analyst with research and consulting firm GlobalData.

John Sisa, GlobalData’s Lead Analyst covering Upstream Oil & Gas in the Sub-Saharan region, states that international interest in Kenya’s oil and gas sector has intensified over the last 20 months, following Tullow Oil(Tullow) and Africa Oil Corporation’s announcement of the country’s first commercial oil discovery in block 10BB/13T within the South Lokichar Basin.

According to GlobalData, block 10BB/13T alone could generate approximately $10 billion in revenue over a 30-year production period, based on regional geological characteristics and well test results. This volume of cash flow alone will cause Kenya’s Gross Domestic Product, which is currently at $40.7 billion, to grow at an average yearly rate of 0.83%.

Sisa says: “The delay in Kenya’s first licensing round could prove beneficial to the country’s economy, as International Oil Companies (IOCs) could make additional, commercial oil and gas discoveries before the end of the year. This would in turn strengthen prospectivity and interest in the country’s oil and gas industry.

“Additionally, competition among IOCs during the delayed bidding process may be significantly greater than at present, and the round could include higher licensing costs and tougher fiscal terms that would maximize government revenues.”

Sisa believes that the Kenyan government has indicated its willingness to develop an early oil production facility by 2016, which would allow Tullow to produce oil from block 10BB/13T at marginal rates until the proper infrastructure is in place for shipment.

“This early monetization of oil reserves would generate more revenue for the Kenyan government’s budget and would therefore act as a crucial component of economic growth. Similarly fundamental in accelerating such growth is the proposed development of the Kenya-Uganda crude oil pipeline, which is designed to pass through block 10BB/13T and South Sudan,” the analyst says.

A new port is currently being developed in Lamu, Kenya, which would also host a new refinery that receives oil from Uganda, South Sudan and Tullow’s block 10BB/13T. GlobalData expects this refinery to be launched by 2018.

Duke Energy Florida (NYSE: DUK) has announced plans for three major construction projects to continue meeting the needs of its customers. If the plans are approved by the Florida Public Service Commission, the company will construct a state-of-the-art, highly efficient combined-cycle natural gas power plant in Citrus County and two simple-cycle combustion turbine generators at the Suwannee Plant near Live Oak.

Additionally, it will install new equipment at the Hines Energy Complex near Bartow to increase efficiency and power output.

Officials also announced the retirement timeline for two coal-fired units at the Crystal River Energy Complex.

If approved by regulators, the projects will benefit customers by increasing systemwide reliability and efficiency while reducing emissions.

“We are making these investments to continue providing our customers with the most cost-effective energy solutions and highest level of reliability with limited environmental impact,” said Alex Glenn, Duke Energy state president – Florida. “We are committed to ensuring our customers’ energy needs are met 24 hours a day, seven days a week now and in the future.”

Today, Duke Energy Florida will provide the Florida Public Service Commission an update in Tallahassee on these projects. On May 27, 2014, the company will formally submit the plans to the commission for approval. A commission ruling is expected later this year.

New combined-cycle natural gas plant in Citrus County

After a months-long request for proposals process, Duke Energy Florida has selected its self-build option to construct a 1,640-megawatt combined-cycle natural gas plant to help serve Florida’s approximately 1.7 million customers starting in 2018. The anticipated cost to build the new plant is approximately $1.5 billion, including financing costs.

“Our proposal is the most cost-effective option for customers that provides systemwide reliability, ensures regulatory compliance and meets our needed 2018 in-service construction timeline,” said Glenn.

The new plant will be located on 400 acres adjacent to the existing Crystal River Energy Complex. Construction and related activities are expected to add several million dollars to the local tax base. During the height of construction, 600 to 700 jobs are expected to be created.

If all regulatory approvals are received, construction is expected to start in early 2016. The plant’s first 820 megawatts are expected to come online in spring 2018, and the second 820 megawatts are expected to be available by December 2018.

The plant will receive natural gas through a new pipeline Sabal Trail Transmission is constructing. The pipeline will start in Alabama, extend through Georgia and end in Central Florida. Sabal Trail Transmission will license, construct and operate the natural gas pipeline.

Duke Energy Florida also announced its intent to retire Crystal River coal-fired units 1 and 2 due to changing federal environmental regulations. The retirements will take place when the Citrus County combined-cycle plant becomes operational.

New simple-cycle combustion turbine generators at Suwannee Plant near Live Oak

To meet customers’ energy needs starting in 2016 as identified in Duke Energy Florida’s 10-year site plan, the company also plans to build two simple-cycle combustion turbine generators on 68 acres at the Suwannee Plant. The 320 megawatts of generation will accommodate peak electricity demand and serve customers beginning in 2016. The anticipated cost to build the units is approximately $197 million, including financing costs.

The three steam plants built in the 1950s are slated to be retired in 2016 when the combustion turbine generators become operational.

Duke Energy will help employees through the plant retirements and redeploy as many as possible to other positions within the company.

Equipment additions at Hines Energy Complex near Bartow

At the Hines Energy Complex in Polk County, which has four combined-cycle power blocks, Duke Energy Florida plans to install inlet air chilling units to increase efficiency and power output during the hot summer months. Chillers are like air conditioning units, cooling the outside air that is used during the combustion process.

By 2017, these upgrades will add about 220 megawatts to the plant’s existing 1,912 megawatts of generation. The anticipated cost to install the chillers is approximately $160 million, including financing costs.

Duke Energy Florida owns coal-fired and natural gas generation providing about 9,000 megawatts of owned electric capacity to approximately 1.7 million customers in a 20,000-square-mile service area.

Siemens has agreed a $1.3bn deal to buy Rolls-Royce’ energy aero-derivative gas turbine and compressor business.

The Bavaria-based company is looking to strengthen its position in the power generation and oil and gas industries, and close a profitability gap with rivals GE and ABB.

Rolls-Royce’s Energy gas turbine and compressor business has around 2,400 employees. In 2013, it was reported within the results of the Energy business where it contributed £871m of revenue and £72m of underlying profit.

The transaction excludes certain smaller power generation sector assets. On completion of the transaction, Rolls-Royce’s shareholding in the Rolls Wood Group (RWG) joint venture, that provides maintenance, repair and overhaul services, will be transferred to Siemens.

The transaction has been approved by the boards of directors of Rolls-Royce and Siemens, and is expected to complete before the end of December 2014, subject to closing conditions, including regulatory approvals.

In terms of results, Siemens (NYSE: SI) this week reported quarterly earnings that missed analyst estimates on more charges at Siemens’s power transmission unit.

As part of the Rolls-Royce deal, Siemens will pay the London-based company an additional $340m over 25 years to get exclusive access to aero-turbine technology in the 4- to 85 MW power output range. The turbines with an output below 66 MW fill a gap in Siemens’s product portfolio.

As part of an overall restructuring, chief executive Joe Kaeser has added Royal Dutch Shell Plc (RDSA) executive Lisa Davis to his team. She will join Siemens’s management board on in August with responsibility for power operations. Michael Suess will step down from a similar role “for personal reasons and by mutual consent” and with immediate effect.

The UK government was today accused by the Renewable Energy Association (REA) of ducking an opportunity for much-needed biofuels policy reform, with no clear policy framework for sustainable biofuels.
This follows the response of the Department of Transport 9DfT) to two important consultations on renewable transport fuels, including its plans for so-called “advanced biofuels”.
The department has proposed a limited set of changes to the Renewable Transport Fuel Obligation (RTFO) but stopped short of outlining how it will meet its binding 10% 2020 renewable transport target.
The current RTFO obligation level is set at 4.75% by volume, or approximately 3.5% by energy, so a nearly three-fold increase in biofuel supply is needed by 2020.
REA chief executive Dr Nina Skorupska said this morning: “Sometimes policy moves too fast and becomes unstable, as we’ve seen with drastic changes to support for solar power.
“But sometimes policy moves too slowly and remains unclear, as we are still seeing with sustainable biofuels.
“Government has missed an opportunity here to set out a trajectory to its 2020 10% renewable transport target and will not introduce any substantive support for advanced biofuels until the second half of 2015 at the earliest.
“Meanwhile the UK is missing out on jobs as investors move their money to more supportive policy environments, such as the USA.”
Dr Skorupska urged the government to “up its game on transport to make the most of the economic and environmental benefits of sustainable biofuels. It doesn’t make sense to refuse to raise the RTFO obligation level when it is committed to a near-threefold expansion on current levels by 2020.”
She added that a proven market in conventional biofuels was vital for building confidence and spurring investment in advanced biofuels which, although costlier and more technologically risky right now, could provide even greater environmental benefits.

Loans of up to £400,000 per farm are available from today in a new initiative to help farmers in England who want to build small-scale AD plants on their farms.
They are available from the On Farm Anaerobic Digestion (AD) Loan Fund of as part of a £3 million initiative administered by the government-funded Waste Resources Action Programme (WRAP).
The first stage of the Fund, which was launched in October 2013, offers grants of up to £10,000 per farm to help farmers develop business plans for on-farm AD projects. This has already received nearly 400 enquiries.
The second stage is a loan, funded by Defra and managed by WRAP, which aims to support the construction of on-farm AD plants generating less than 250kW of energy, and which will utilise farm waste such as manures and slurries.
“The capital loan fund is designed to support farmers who are finding it difficult to obtain asset finance for such projects from the usual commercial sources, and comprises of a maximum loan per farm of £400,000, or 50% of the capital,” said a spokesman for WRAP.
He explained that the lending amounts varied from £50,000 to £400,000 and farmers would need to match the value of loan with finance from other sources. Interest rates would vary between 3% – 12% depending on the risk and the individual details of the project.
Different repayment options were available and they would not conflict with eligibility to claim from incentives schemes such as the Feed-In Tariffs (FITs.
UK environment minister Dan Rogerson said he hoped the loans would encourage the anaerobic digestion sector to grow.
“This will strengthen local economies by producing local energy, cutting waste, reducing greenhouse gas emissions and recycling valuable nutrients back into the land,” he added.

Researchers from the University of Surrey were today awarded funding by the UK government and the government in India for two projects to explore how nanotechnology will impact the future of renewable energy.
Awarded to researchers from the Advanced Technology Institute (ATI) at the University of Surrey through the UK-India Education and Research Initiative (UK-IERI), both programmes will involve close collaboration between universities in the UK and India, as well as with Tata Steel Research and Development UK.
The first project will look into how to effectively capture and store solar energy using an approach known as ‘inorganics-in-organics’, in which composite materials work together to increase efficiency.
The second project will examine the use of zinc oxide nanomaterials in ultra-high sensitivity gas sensors that can be used in environmental monitoring devices to deliver improved sensitivity and increased energy efficiency.
Project leader Professor Ravi Silva was confident that the nanotechnology projects offered direct solutions for the key challenges that the energy sector faces.
“Working with cutting-edge nanomaterials such as ZnO, graphene and carbon nanotubes, we can revolutionise energy storage and capture,” he added.

With the first Feed-In Tariff (FIT) degression applied from April 1, the Green Investment Bank (GIB) is expected to come out in support of the UK’s anaerobic digestion (AD) and biogas industry at the country’s biggest biogas event in July.
Partha Vasudev, vice-president waste & bioenergy at the GIB, has been confirmed to speak at the UK AD & Biogas 2014, organised by the Anaerobic Digestion and Biogas Association (ADBA), at the NEC in Birmingham on July 2 and 3.
The GIB invests in UK projects which are both green and commercial and it has identified waste as a priority sector for its investment, appreciating the potential for anaerobic digestion to deliver against the bank’s mandate to deliver sustainable green growth.
“Anaerobic digestion is an exciting market for the Green Investment Bank. The technology is at the core of government waste policy, and with a good pipeline of projects it can help us meet our investment goals and accelerate investment in the green economy,” said Mr Vasudev recently.
“The strong growth in the marketplace over the last year is exciting and we look forward to working with the industry to achieve its potential.”
GIB has identified that AD capacity already available to be developed requires investment of around £650m, and the bank’s support in this investment would make a significant difference to the UK’s AD infrastructure and the speed at which it develops.
The bank’s investment funds have already committed a combined £10m to TEG’s Dagenham AD plant – where build was completed last month – and Earthly Energy’s Teeside AD plant, where construction began in March 2013. The potential for further investment in both the waste and farming sectors is an exciting prospect.
ADBA chief executive Charlotte Morton said: “I am delighted that the Green Investment Bank will be presenting at UK AD & Biogas 2014. The bank has already made a hugely valuable contribution to the industry through its early investments and its first market report, and we look forward to hearing how they have seen that market develop.
“In the future, there are huge opportunities to support the market more widely. The government’s response to the Ecosystem Markets Task Force recognised the key role that smaller AD plants can play in supporting climate-smart farming and confirmed that they ‘will work with WRAP and the Green Investment Bank to explore the financing of farm-scale AD projects at an aggregate level, both for equity investments and for debt financing.”
“Given the challenges facing smaller scale AD, GIB’s analysis of the market in general will be fascinating.”

Rising production of natural gas in the Marcellus shale play in the Appalachian basin continues to outpace the growth in the region’s pipeline takeaway capacity, which has led to supply backups in the region, the US Energy Information Administration reported in a weekly gas report. Because of this fact, EIA observed, new gas production is unable to flow to areas of high demand, “placing downward pressure on prices in the region.” EIA noted that this phenomenon has also “contributed to a number of natural gas wells in Marcellus remaining backlogged, with a Feb. 28 report from Barclay’s estimating that more than 1,300 wells there are drilled but not completed.” EIA noted that several proposed and recently completed projects will provide additional pipeline infrastructure to relieve some of the Marcellus supply glut. “Projects that have recently come online, such as Transcontinental Pipeline Co.’s (Transco) Northeast Supply Link, have expanded the capacity of pipelines to move gas north, into the New York and New England demand centers. Recently, there have also been several proposed projects to move natural gas from the Marcellus region south, reversing flows on pipelines that historically sent natural gas from the Gulf Coast to consumers in the Northeast,” EIA said. Transco announced on Apr. 17 that natural gas shippers entered into firm delivery contracts for the full 0.44 bcfd of planned expansions under its Dalton Expansion Project. The Dalton project allows gas to flow south from New Jersey to Georgia on the Transco mainline. Transco currently has a peak design capacity of 9.8 bcfd, and flowed as much as 2.8 bcfd of Marcellus gas to the Northeast this winter, according to data from Bentek Energy LLC, EIA reportd. Transco has submitted a request with the US Federal Energy Regulatory Commission for the Dalton project, and currently plans to begin construction in April 2016 and begin service in May 2017.