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Green Globe: Abengoa scores €650M role in building world's largest solar complex

SNL Image
The Beam Down concentrated solar power pilot project in Abu Dhabi, United Arab Emirates, where the biggest solar power facility in the world is being built.
Source: Associated Press

Clean technology maker Abengoa SA has been selected as a partner in the world's largest solar complex, located in the United Arab Emirates, providing a boost to the company's first-quarter results.

Shanghai Electric Group Company Ltd, which is building the 700-MW extension of the Mohammed bin Rashid Al Maktoum Solar Park with Dubai Electricity And Water Authority and ACWA Power, picked Abengoa to provide concentrated solar power technology for the project's fourth phase, the Spain-based company announced May 9. Abengoa will provide a 100-MW central tower with concentrated solar power technology and build three 200-MW solar thermal collectors.

The value of Abengoa's work on the solar complex will be about €650 million, making up most of the company's €802 million in new projects awarded during the first quarter.

"In line with our strategy guidelines, Abengoa will focus on projects identified in the Middle East, South America, Europe, Mexico and Central America regions," CFO Victor Pastor said during the company's May 16 first-quarter earnings call.

The Mohammed bin Rashid Al Maktoum Solar Park has a total planned capacity of 1,000 MW by 2020 and 5,000 MW by 2030, making it the largest single-site solar facility in the world once it is completed. United Arab Emirates' officials have touted the project as part of the country's ambitious goal to increase the share of clean energy in its total power production to 75% by 2050.

Sweden-based wave energy company Seabased AB announced that a wholesale distributor in Bermuda signed an agreement for 40 MW of wave energy parks in the Caribbean.

According to a May 14 news release, Bermuda General Agency agreed to buy two wave energy projects, each with a capacity of 20 MW. The first phase will be a 5-MW pilot project, which is expected to be operational by fall 2019 after the company conducts feasibility studies. Seabased CEO Øivind Magnussen said the company's wave energy technology is "a perfect option" for Caribbean islands that have "desirable wave climates and a high need for energy."

Wave energy, like tidal power, is a form of hydropower. Both technologies have raised concerns over potential adverse effects on marine life in nearby waters, according to the U.S. Energy Information Administration. There are a handful of projects around the globe, but wave energy installations have yet to be proven as a viable source of commercial electricity. In 2014, Lockheed Martin announced a joint venture to create the world's biggest wave energy project, a 62.5-MW installation off the coast of Australia.

Alstom SA signed a deal with General Electric Co. for GE to buy Alstom's remaining stakes in three energy joint ventures for €2.59 billion. The assets will transfer Oct. 2.

The renewable energy, grid and nuclear businesses were set up as part of GE's €12.35 billion acquisition of Alstom's power and grid businesses, including the France-based company's gas turbine segment. However, the global gas turbine market has contracted dramatically. CEO John Flannery said during the company's April 20 earnings call that GE sees the market going below 30 GW in 2018, lower than the 30 GW to 34 GW the company had expected. The decline has been attributed, in part, to the growing demand for renewable energy and energy efficiency, but GE has rebuffed criticism that it is relying on its renewable energy business to pick up the slack from the power side.

"I think you can make a timeline and say that GE has been making investments to take advantage of the energy transition," GE Renewable Energy spokesman Jim Healy said in an April 20 interview.

Elsewhere

* Poland's largest state-owned public power company, PGE Polska Grupa Energetyczna SA, is backing away from building the country's first nuclear power station and plans to shift its focus to offshore wind, Reuters reported, citing two sources.

* U.S. tariffs on imported solar panel materials have pushed South Korea-based Hanwha Q CELLS Co. Ltd. to seek new markets in other regions such as Europe.

* In China, electric and hybrid vehicle sales were up 149% in April compared to a year ago, according to Business Green.

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