Centrica launches support for 13 onshore windfarms in Italy
Centrica plc has agreed Power Purchase Agreements (PPAs) with Glennmont Partners for the trading and balancing of 315 MW of capacity on 13 onshore wind farms in Southern Italy and Sicily.
The deal forms a major part of the company’s route-to-market business in Italy, which aims to further grow, through renewable energy generators, corporates and industrials who are looking to purchase electricity on long-term agreements. During 2017 and 2018, Centrica has been involved in a number of landmark European route-to-market projects with major corporates. The provision of route-to-market services is an important part of the strategy of its Energy Marketing & Trading business to provide price certainty and support new, low-carbon power generation.
The market for PPAs is expected to grow rapidly in Europe and globally as renewable energy reaches grid parity and renewable power subsidies phase out.
Cassim Mangerah, Centrica’s Co-MD of Energy Marketing & Trading, said: “We are delighted to sign these PPAs with Glennmont Partners who are among the most experienced and dedicated investors in clean energy infrastructure in Europe.
Francesco Cacciabue, Partner and Chief Financial Officer at Glennmont Partners, said: “We have a strong track record in the development, construction and operation of renewable energy generation projects. Our investment strategy is focused on sustained investment performance and predictable returns. We welcome Centrica as a new PPA provider in Italy and are very pleased to have signed these PPAs with an investment grade company.”
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.