Sep 3, 2013

Energy Exploration Helps Marine Gensets Demand

2 min
With most of Europe’s shipbuilding activity migrating to the Asian countries of South Korea, China and Japan, the traditional demand for mari...

With most of Europe’s shipbuilding activity migrating to the Asian countries of South Korea, China and Japan, the traditional demand for marine generator sets has dipped. This shift, coupled with the Euro zone recession and financing difficulties, has further deepened the slump in demand for new vessels and thus, marine genset suppliers have been forced to find other avenues of growth. 

New analysis from Frost & Sullivan (, European Marine Generator Set Market, finds that the market earned revenues of €163.9 million in 2012 and estimates this to reach €197.7 million in 2017. 

Although commercial, commodity vessels such as tankers and cargo ships are being built in low-cost Asian countries, Europe’s reputation for building high-value ships such as cruise ships, luxury yachts, icebreakers, offshore support vessels, and tugs has kept the shipbuilding industry alive. Another factor stoking the demand for ships and vessels, and eventually, marine gensets, is the increased oil and gas exploration and production activities as well as growth in renewable energy (especially offshore wind). 

“In the future, wind farms are expected to be constructed further away from the shore and in deeper waters,” said Frost & Sullivan Energy & Environmental Research Manager Malavika Tohani. “With wind farms increasing in size, there will be a requirement for vessels that are highly specialized and fuel efficient, giving marine genset manufacturers a new customer base to supply to.” 

Meanwhile, the demand for oil and gas is continuously rising, especially from emerging economies such as China and India. This has spawned demand for subsea equipment, as the number of offshore explorations for energy resources is multiplying. The need for boats and vessels to engage in these activities bodes well for the marine genset market. 

The market has also got a boost from industry regulations and emission norms, which drive retrofitting activities therefore, the demand for gensets. 

“Increasing emphasis is being placed on ‘green’ trends in the shipbuilding industry, the most important of which is greater fuel efficiency due to a rise in fuel prices,” noted Tohani. “However, lifecycle cost and other environmental concerns are also becoming important, thereby requiring greater R&D by engine manufacturers and subsequently, modifications by genset packagers.” 

Overall, strong demand is expected for large gensets above 1 MW, with Europe focusing on manufacturing high-value, specialized ships and vessels. 

European Marine Generator Set Market is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan’s related research services include: Asia-Pacific Marine generator Set Market, Central and Eastern European Diesel Generator Set Market, and the Russian Genset Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. 


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Apr 23, 2021

Drax advances biomass strategy with Pinnacle acquisition

Dominic Ellis
2 min
Drax is advancing biomass following Pinnacle acquisition it reported in a trading update

Drax' recently completed acquisition of Pinnacle more than doubles its sustainable biomass production capacity and significantly reduces its cost of production, it reported in a trading update.

The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.

The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).

Drax CEO Will Gardiner said its Q1 performance had been "robust", supported by the sale of Drax Generation Enterprise, which holds four CCGT power stations, to VPI Generation.

This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.

In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.

The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.

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