PPC’s energy-sufficiency plan for Crete forwarded to Brussels

An energy-sufficiency plan to cover Crete’s energy needs until an electrical grid-link with Athens is completed for commercial launch, expected within 2025, is now close to being finalized and has been forwarded to the European Commission for approval, energypress sources have informed.

A remuneration formula chosen for the island’s energy-sufficiency plan involves state aid and, as a result, requires Brussels’ approval.

The energy ministry has awarded Crete’s energy-sufficiency project to power utility PPC after alternative solutions involving Heron and Motor Oil failed to make progress.

For its Cretan plan, PPC has reached an agreement with Greek construction and energy group GEK-TERNA to initially lease – for two years, until 2025, and then purchase – the latter’s Heron I, a 147-MW gas-fired power plant, currently stationed in the Viotia area, northwest of Athens.

PPC plans to have the Heron I power plant transferred and reinstalled on Crete in time for this coming summer, when energy demand typically peaks.

A decision was reached, at a recent energy ministry meeting, to cover 75 percent of the power plant’s investment cost, until 2025, through the public service compensation (YKO) account, accumulating related surcharges added to all electricity bills.

The other 25 percent of the investment cost is planned to be covered, between 2025 and 2028, through a remuneration mechanism for emergency reserve units.

The energy ministry is soon expected to bring to Parliament a legislative revision covering the energy-sufficiency plan for Crete.

 

LNG demand in trucking, industrial sectors to rise in ’24

LNG demand in the trucking and industrial sectors, through gas grid operator DESFA’s LNG truck-loading service, enabling refueling of consumption points situated at a distance from the country’s gas network, appears set to rise in 2024, energypress sources have informed.

An increasing interest by market players for more time slots at DESFA’s truck-loading infrastructure, maintained by the operator at its Revythoussa terminal to load tankers, serves as a definite sign of the anticipated rise in LNG demand.

DESFA’s truck-loading infrastructure was launched in October 2022, while a first operational test took place in March, 2022. Three companies, Blue Grid, DEPA Commercial, and Motor Oil Hellas, took part in the testing with LNG trucks. The service has since been operating without issues and offers potential to serve a larger capacity.

Two industrial producers, Fthiotis Papermill, in central Greece, and dairy company Kolios, in Kilkis, northern Greece, have completed developing LNG storage and gasification facilities that are expected to begin operating in March.

At least ten more industrial producers appear interested in following suit by the end of 2024, sources have informed.

LNG appears set to play a bigger role in the heavy-transportation sector, the majority of cargo transfers planned for export to North Macedonia and Bulgaria.

Four refueling stations being prepared by Blue Grid in Athens, Thessaloniki, Patras and Ioannina will help broaden the LNG truck-loading market. The first two of these four stations – in Thriasio, on Athens’ western outskirts, a collaboration with Elin, and in Thessaloniki’s Sindos area, a collaboration with Kolokithas Fuels, are planned to be ready early April.

LNG usage by trucks promises operating cost savings of as much as 30 percent and significantly improved performance in terms of environmental impact.

DESFA launches LNG truck loading service, suppliers keen

Gas grid operator DESFA launched its LNG truck-loading service at Megara, 45 kilometers west of Athens, earlier this week, finally enabling refueling of consumption points located at a distance from the country’s gas network.

The launch, on Monday, was preceded by an extensive performance test of the LNG truck-loading infrastructure last March. Three companies, Blue Grid, DEPA Commercial, and Motor Oil Hellas, took part in the testing with LNG trucks.

Interest in the new service is already strong as gas suppliers appear keen to utilize its flexibility to expand their customer base.

Transportation of LNG via specially designed trucks promises gas supply to industrial consumers, vehicle refueling stations selling gas, areas not connected to Greece’s gas network within Greece, as well as neighboring countries.

Plans are already underway for LNG delivery to distribution networks being developed by gas distributor DEDA in western Greece – in Patras, Agrinio and Pyrgos.

The first LNG station designed to facilitate gas distribution to remote areas was installed in September, 2022 by gas distributor EDA THESS at Elassona, towards Greece’s north. It will supply the local network. The DEPA Infrastructure subsidiary plans to do likewise for gas supply covering other areas, including the Greek islands Skiathos, Skopelos, and Alonissos.

DESFA’s LNG truck-loading initiative represents the first segment of a small-scale LNG supply chain, to be complemented by a small-scale LNG jetty under development at DESFA’s Revithoussa LNG terminal.

This infrastructure will enable bunker vessels to supply LNG-powered vessels, such as cargo ships and container ships, at Piraeus port. It will also allow for ship-to-ship refueling, supporting larger vessels, such as cruise ships.

Energy firms dominate Fortune 500 Europe list’s top spots

European energy firms have bounced back, as highlighted by their dominant rankings on the first-ever Fortune 500 Europe list, published yesterday.

The Fortune 500 Europe list dispels myths about the continent and also reads like a throwback to the 20th century, when energy and automotive industries were the prime players in the global economy – and companies were led by men.

The list’s top spot is held by British energy giant Shell, with six energy companies and three automotive companies featuring in the top 10. This is starkly different to the US list, where three Big Tech companies—Amazon, Apple, and Alphabet—feature in the top 10. In Europe, the largest pure tech company is SAP, at No. 114, followed by 1990s powerhouses Ericsson (No. 141) and Nokia (No. 147).

One would have to go back to the late 1990s to find a Fortune 500 akin to what the Fortune 500 Europe looks like today. Twenty-five years ago, GM topped the US list with Ford and Chrysler not far behind, and Exxon, Mobil (and GE, to a lesser extent) representing the energy sector in the top 10.

The list of Europe’s largest companies, based on revenue, includes four Greek energy companies, Motor Oil, at No, 213, Helleniq Energy, formerly Hellenic Petroleum (ELPE), at No. 243, power utility PPC, at No. 298, and Mytilineos, at No. 444.

On the diversity front, too, Europe lags the US. Just 7 percent of Fortune 500 Europe companies are led by a woman, compared to 10 percent on the US list, a statistic that questions the continent’s progressive image.

The Fortune 500 Europe list includes companies from 24 different countries, ranging, in size, from Germany’s MTU Aero Engines, with revenues of $5.6 billion, at No. 500, to London-based oil and gas giant Shell ($386.2 billion) at No. 1.

Combined, the 500 European companies generated $13.94 trillion in revenue in the most recent fiscal year.

 

Inaugural offshore wind farm auctions in ’27, 6 areas likeliest

Greece’s first auctions for offshore wind farm areas are expected to take place in 2027 with six areas off Crete, Gyaros, Rhodes and Evia considered the likeliest to be offered to investors as part of the country’s efforts for an offshore energy portfolio of 1.9 GW by the end of the decade, energy ministry officials have informed.

EDEYEP, the Hellenic Hydrocarbons and Energy Resources Management Company, overseeing the effort, also set, late last year, 2027 as the inaugural year of these auctions.

The Greek government recently reduced the National Energy and Climate Plan’s 2030 capacity target for offshore wind farms to 1.9 GW from 2.7 GW.

EDEYEP has scoured Greek waters for locations suitable for development of offshore wind farms. Areas making the grade have been included in a National Offshore Wind Farm Development Program, presented just days ago by the company, along with a Strategic Environmental Impact Assessment.

Flora Karathanasi, an EDEYEP consultant, named six of ten prospective offshore areas for initial development that would contribute to the 2030 target. The six areas are located northeast of Rhodes; around Gyaros, in the northern Cyclades; off Agii Apostoli in eastern Evia; off northeastern Crete, between Agios Nikolaos and Sitia; and off eastern Crete.

According to the National Offshore Wind Farm Development Program, five of these areas are planned to host floating wind turbines, while only one, off northeastern Crete, will host fixed-foundation wind turbines.

The program’s presentation coincides with a heightened level of international RES investment interest in Greek offshore areas.

Swedish-headquartered Hexicon’s Head of Business Development, Henrik Baltscheffsky, recently told energypress that Greece can become a European focal point for floating wind energy, a view he reiterated days later at the 5th Renewable & Storage Forum in Athens.

Also, the Greek subsidiary of Denmark’s Copenhagen Offshore Partners is scheduled to launch its Athens office this Thursday. COP is partnering with the fund management company Copenhagen Infrastructure Partners (CIP), with which Greece-based industrial and energy group Mytilineos shares an alliance.

In addition, Corio Generation, a subsidiary of Australian global financial services group Macquarie, has also expressed an interest to enter Greece’s nascent offshore wind sector. It has announced the formation of a joint venture with Greek company Globalsat.

These moves come following a series of like-minded announcements by domestic companies with major international players (Terna Energy – Ocean Winds; Helleniq Energy – RWE; Intrakat – Parkwind; Motor Oil – Masdar).

DESFA forecasts gas demand increase of 25% by 2029

Gas grid operator DESFA expects a sharp rise in domestic gas demand over the next few years, seen rising 25 percent by 2029, according to company data.

Natural gas usage in Greece is projected to rise to 7.3 bcm by 2029, a 25 percent increase compared to 2022, when consumption reached 5.8 bcm. according to DESFA’s data.

DESFA anticipates domestic gas demand will reach 6.7 bcm by 2027 and approximately 15.5 percent over the next two years.

The anticipated rise in domestic gas demand by DESFA is closely linked to the development of new gas-powered electricity stations being established in Greece.

GEK-Terna and Motor Oil Hellas have teamed up for the development of an 877-MW gas-fueled power station in Komotini, northeastern Greece. This project is now under construction and slated for a commercial launch in early 2024.

In addition, power utility PPC, gas company DEPA Commercial and the Copelouzos group have established a partnership for the development of an 840-MW gas-fueled power station in Alexandroupoli, also in the country’s northeast. It is expected to be completed at the end of 2025.

DESFA forwarded its gas-demand data to ACER, Europe’s Agency for the Cooperation of Energy Regulators, for an analysis concerning network fees proposed by the gas operator in consultation staged by RAAEY, the Regulatory Authority for Waste, Energy and Water.

ACER has described the amount of data provided for DESFA’s network fees proposal as insufficient.

The European agency wants RAAEY to clearly set the duration of the new formula for network fees, based on planned investments intended to stabilize gas network flow.

 

Motor Oil, Titan CCS grants step towards value chain

Energy group Motor Oil and cement producer TITAN have been selected for EU Innovation Fund grants, supporting innovative low-carbon technologies, for respective carbon capture and storage (CCS) initiatives taken by the two corporate groups.

Their selections promise to create opportunities for synergies and the development of a domestic value chain in the CCS sector.

For example, an annual sum of 1.9 million tons of CO2 to be captured at TITAN’s production facility in Viotia’s Kamari area, slightly northwest of Athens, will benefit Energean’s CCS project at its depleted offshore oil fields in the northern part of the Aegean Sea.

The Prinos CCS also stands to gain from Innovation Fund selection for cement industry Holcim’s production facility in Croatia, as Prinos is the nearest CCS facility. On a larger scale, the Prinos CCS can develop into southeast Europe’s first CCS facility catering to industry.

Motor Oil’s Iris project, concerning carbon capture at the energy group’s Oil’s refinery in Corinth, west of Athens, has been selected for a 127 million-euro Innovation Fund grant, it has just been announced.

This development gives Motor Oil the opportunity to greatly reduce its carbon footprint, produce 56,000 tons of blue hydrogen annually, and prepare the groundwork for e-fuel production, through the development and operation of a new low-carbon synthetic methanol production plant.

TITAN’s Ifestos carbon capture project, also just selected for an Innovation Fund grant, will enable the group to produce approximately 3 million tons of zero-carbon cement on an annual basis.

Motor Oil: DESFA formula for tariffs should be maintained

Motor Oil and Edison, offering views as well as objections for gas grid operator DESFA’s allowed revenue and tariff formulas for 2024 in consultation staged by RAAEY, the Regulatory Authority for Waste, Energy and Water, have both stressed support for an existing CWD-type formula applied by the operator but oppose a proposed a stamp-duty formula for setting capacity charges.

Motor Oil noted that such a change would burden entry points in the national gas grid’s southern part and benefit the northern entry points.

Motor Oil also contended that DESFA should not maintain a floating LNG tank at its Revythoussa terminal just off Athens as this does not offer a permanent solution and unjustifiably burdens system users.

The energy group also stated that financial support is not needed exclusively for the Revythoussa terminal, as proved by the most recent annual auctions and their results.

Also, Motor Oil noted that DESFA’s ten-year development plan includes big budget increases of over 50 percent that are not justified by the extent of related price increases for materials. As such, Motor Oil believes greater transparency is needed.

 

Hellenic Hydrogen presents plan for hydrogen unit in north

Hellenic Hydrogen, a joint venture involving Motor Oil and power utility PPC, has presented its North-1 hydrogen-producing facility plan, detailing the benefits and advantages of its development at PPC’s old Amyntaio coal-fired power station in northern Greece’s Western Macedonia region, as well as prerequisites that need to be met for the project’s development.

The Hellenic Hydrogen project’s plan was presented by Alexandros Soumelidis, PPC’s Director of New Production Activities, at the 1st Hydrogen & Green Gases Forum, an energypress event staged last Friday.

According to Soumelidis, the joint venture’s investment is budgeted at 130 million euros, while the plan entails developing a facility to offer water electrolysis capacity of 100 MW, with potential for a boost to 200 MW.

The facility is planned to produce annual hydrogen amounts of 12,600 tons, enough to cover the needs of the country’s first off-takers.

Hellenic Hydrogen aims to develop large-scale hydrogen projects that could offer sizeable quantities of renewable gas at competitive prices, a crucial factor to attract industrial consumers.

As part of its plan, the joint venture is considering the development of two further hydrogen-producing facilities, which, according to sources, would be located at Megalopoli, in the Peloponnese, and in the wider area of Motor Oil’s Corinth refinery, west of Athens.

 

 

Motor Oil’s Unagi takeover secures sizeable solar energy portfolio

Motor Oil’s 75 percent acquisition of Unagi, controlling 51 percent of RES companies Baliaga, Pivot Solar and Teichio, creates a solid foundation for the petroleum group to expand in the RES sector, especially solar energy, a sub-sector in which its investments have lagged behind as a result of a focus on wind energy projects, the group’s leadership informed analysts during a presentation of 1Q results.

Motor Oil’s takeover of Unagi primarily concerns a portfolio of licenses rather than RES projects in operation. Baliaga, Pivot Solar and Teichio hold licenses for solar energy projects throughout Greece.

The petroleum group is taking on a 1.9-GW portfolio capacity through the acquisition, of which approximately 380 MW are close to securing connection terms and are expected to be fully constructed within the next year and a half.

The amount agreed to by Motor Oil for the acquisition is 10 million euros, a relatively modest sum as it mostly concerns licenses, analysts were informed by the group’s leadership.

Motor Oil’s share of the cost for RES projects to be developed by Unagi as a first phase is estimated at 100 million euros, the group’s leadership informed.

Motor Oil’s administration, responding to a question on whether it had completed its cycle of purchases in the RES sector with this acquisition, informed it probably had done so as it now finds itself having exceeded goals set. The focus will now be on developing the portfolio’s projects, the group’s leadership stressed.

Motor Oil buys 51% of Unagi, indirect RES partnership formed with PPC

Two of the country’s leading energy groups, power utility PPC and Motor Oil, have entered an indirect partnership in the RES sector following an announcement, by the latter, of a 75 acquisition of Unagi.

According to MORE, a Motor Oil subsidiary, Unagi holds a 51 percent stake in a portfolio of 1.9 GW in solar energy projects, in Greece, currently at various stages of development. The other 49 percent of the Unagi portfolio was acquired by PPC Renewables approximately a year ago.

Unagi’s 1.9-GW in solar energy projects, located in northern and central Greece, have involved three companies, Baliaga, Pivot Solar and Teichio. Control of these projects will now be assumed by PPC and Motor Oil.

Development of the first project in this 1.9-GW portfolio is expected to commence early in 2024, PPC and Motor Oil officials have informed.

PPC plans to sign PPAs to purchase electricity produced by the Unagi solar energy facilities.

Some of the 1.9-GW portfolio’s solar energy projects located in northern Greece’s west Macedonia region are expected to soon receive connection terms from power grid operator IPTO.

Most of the Unagi portfolio’s other projects are at advanced stages of maturity, have received environmental permits, and should secure connection terms by the end of this year.

 

DESFA, RAAEY apart on tariff agreement as deadline nears

Gas grid operator DESFA and RAAEY, the Regulatory Authority for Waste, Energy and Water, still far apart on the operator’s WACC figure for the next regulatory period covering 2024 to 2027, are engaged in tough negotiations as a June 5 deadline for new tariffs approaches.

DESFA set a WACC figure of 9.14 percent in a proposal put through consultation in mid-March. It has been firmly opposed by RAEEY, believing this figure is unjustifiably high.

DESFA ended 2022 with a WACC figure of 7.44 percent, a starting point for RAEEY in its negotiations. The authority, viewing DESFA’s new WACC figure as pivotal as it will serve as a guide in the levels to be set for other operators, believes the operator’s new level should be a little over last year’s 7.44 percent level, and certainly under 8 percent.

The WACC level to be applied by DESFA over the next regulatory period from 2024 to 2027 is one of four aspects that need to be resolved before gas transmission network usage tariffs are set.

DESFA also needs to finalize its operational expenditure figure for the next regulatory period so that an allowed revenue for the operator may be set. The operator has yet to send this data to RAAEY and, consequently, appears likely to miss the June 5 deadline on this matter.

DESFA’s socialization percentage concerning the operating cost of its Revythoussa LNG terminal just off Athens is another unresolved matter. DESFA has proposed that it be maintained at the current level of 50 percent for the next regulatory period.

However, Gastrade and Motor Oil, both developing new floating LNG terminals in other parts of Greece, have protested, contending this figure is excessive and would offer DESFA’s Revythoussa facility an unfair advantage and undermine the financial viability of their investments. ACER, Europe’s Agency for the Cooperation of Energy Regulators, has backed the two companies on this issue.

DESFA’s ten-year development plan covering 2023 to 2032, a fourth prerequisite needed before its new gas transmission network usage tariffs are set, has already received RAAEY’s approval.

 

GEK-TERNA, Motor Oil secure €350m loan for Komotini CCGT, 65% ready

GEK-TERNA and Motor Oil Hellas, co-developing a state-of-the-art, 877-MW combined cycle, gas-fueled power station in Komotini, northeastern Greece, have secured project financing worth a total of 325 million euros from Eurobank and Piraeus Bank, a sum expected to contribute decisively to the CCGT’s further development and completion.

Development of the project, Thermoilektriki Komotinis, is well over the half-way mark and about 60 to 65 percent completed, energypress has been informed. Its developers aim to commence trial runs late next year.

Virtually all of the main equipment to be installed at the CCGT has been received, while mechanical and electrical work is now in progress, along with the development of a substation and interconnection lines.

As previously reported by energypress, a Siemens HL-class gas turbine, the first to be used in Greece, was installed at the facility earlier this year. This cutting-edge piece of technology promises to offer energy efficiency reaching 64 percent.

Three CCGTs to vie for two grid spots covering 1.9 GW, Aurora study shows

Three new combined-cycle gas turbine (CCGT) power plants will be vying for two spots on the electricity grid to cover an available capacity of 1.9 GW, a latest study conducted by Aurora Energy Research and covering the period between 2022 and 2030 has shown.

The Aurora Energy Research study estimated the grid’s available capacity at 2.7 GW but subtracted 820 MW to be offered by the Mytilineos group’s already-completed CCGT in Viotia’s Agios Nikolaos area, slightly northwest of Athens.

The three candidate projects are a CCGT power plant being co-developed by GEK TERNA and Motor Oil in Komotini, northeastern Greece; a power plant being constructed by power utility PPC, gas company DEPA Commercial and the Copelouzos group’s Damco Energy in Alexandroupoli, also in the northeast; as well as PPC’s Ptolemaida V, when it converts from a lignite to natural gas-fueled facility in 2028.

Development of Thermoilektriki Komotinis, the GEK TERNA-Motor Oil CCGT in Komotini, has reached an advanced stage and is considered the most efficient power plant in Greece. Once operational, it will emit 75 percent less CO2 than a lignite plant.

Work on the Alexandroupoli CCGT began last January and is slated for completion in 2025. PPC holds a 51 percent stake, DEPA Commercial has a 29 percent share, and the Copelouzos group’s Damco Energy maintains the remaining 20 percent. This facility will be equipped to also run on hydrogen and mixed fuel.

 

Second Greek-Bulgarian grid link set for pre-summer launch

A second Greek-Bulgarian power grid interconnection, promising to boost transboundary trade and bolster supply security, is scheduled to be completed before summer.

The project, whose Bulgarian section has already been completed, will connect a 200-MVA capacity transmission line running a 151-km distance from Nea Santa in northeastern Greece to Bulgaria’s Maritsa area. The majority of the project’s distance, approximately 121 km, lies within Bulgarian territory.

The interconnection project promises to boost transmission potential at the Greek-Bulgarian border to 1400 MW in a direction from Greece to Bulgaria and 1700 MW from Bulgaria to Greece.

Furthermore, the project will facilitate further RES development in Greece’s north and also enable two Greek power station projects currently being developed to export their production with greater ease.

Construction company GEK-TERNA and energy group Motor Oil have joined forces to develop an 877-MW power station in Komotini, northeastern Greece, while power utility PPC and gas company DEPA Commercial have teamed up for an 840-MW power station in Alexandroupoli, also in the northeast.

Motor Oil reexamining Dioryga Gas FSRU project in Corinth

Energy group Motor Oil is reexamining its plan for the Dioryga Gas FSRU project in Corinth, west of Athens, over concerns created by a change in market conditions, the group’s management revealed yesterday during its presentation of 2022 financial results to analysts.

Petros Tzannetakis, Motor Oil’s deputy managing director, told analysts the group is taking a closer look at details concerning the project.

“We are not saying that we will not go ahead, but that we are still looking at a lot of details,” Tzannetakis noted.

Results of a market test were favorable but market conditions have changed as it has become costlier and more difficult to find LNG carriers, the Motor Oil deputy explained, noting “we still need time before making an investment decision.”

If the project is deemed feasible, the investment will go ahead, Tzannetakis informed.

In its final market test, the Dioryga Gas FSRU project attracted record slot reservation figures for durations of up to 25 years and quantities totaling up to 2 bcm per year.

Located just 22 km from Greece’s existing Revythoussa islet LNG terminal, the Dioryga Gas FSRU would supply electricity producers in Greece as well as markets in southeast Europe.

Last October, RAE, the Regulatory Authority for Energy, approved a capacity increase for the Dioryga Gas FSRU to between 135,00 and 210,000 cubic meters. Motor Oil aims to launch the FSRU in the first quarter of 2024, if the company decides to go ahead with the project’s development.

 

Dioryga Gas FSRU investment decision by Motor Oil in 3Q, clarity needed

Energy group Motor Oil is expected to wait until the end of summer or early autumn before making an investment decision on the development of its Dioryga Gas FSRU project in Corinth, west of Athens, budgeted at approximately 340 million euros, sources have informed energypress.

Though a market test, staged recently by the petroleum group, proved successful, unclear factors still need to be considered before Motor Oil makes decisions, the sources noted.

Motor Oil requires further clarity on gas grid operator DESFA’s plans for an upgrade of a high-pressure gas pipeline segment from Patima to Livadia, mainland Greece.

During recent consultation on DESFA’s ten-year development plan covering 2023 to 2032, Motor Oil disagreed with this upgrade’s timing, scheduled by DESFA for October, 2027, pointing out the Dioryga Gas FSRU, if developed, is planned to be launched prior to this date, in May, 2025.

Doubled pipeline capacity at the Patima-Livadia segment, unjustifiably delayed, according to Motor Oil, will be needed by the company’s Dioryga Gas FSRU in Corinth.

Furthermore, Motor Oil has reacted against DESFA’s doubled cost, to 19.5 million euros, for the development of a related metering station required for the FSRU’s connection to the gas pipeline network. Motor Oil submitted a request, to the consultation procedure, for this part of the project to be taken on by Ellaktor – a construction company in which Motor Oil holds a stake – under the supervision of DESFA.

Last January, state authorities classified the Dioryga Gas FSRU project as an investment of strategic importance, status offering fast-track licensing.

Elpedison set to finalize decision for Thessaloniki CCGT

Helleniq Energy, formerly ELPE, and Edison are close to finalizing an investment decision for the co-development, by their Elpedison partnership, of an 826-MW CCGT, or gas-fueled power station, in Thessaloniki.

Elpedison’s shareholders are expected to reach an investment decision for the 826-MW CCGT in May, sources have informed. Preliminary work linked to this project has already begun at Helleniq Energy’s refineries.

This prospective CCGT was one of the first new-generation projects to have been licensed by RAE, the Regulatory Authority for Energy, back in 2019. However, despite the time that has since elapsed, the partnership’s shareholders had held back on an investment decision.

The country’s decarbonization plan, and its scope, was one issue that troubled company shareholders,

The Elpedison CCGT is fully licensed in terms of environmental, town planning and other requirements.

Despite its early licensing, other CCGT projects of the same class have jumped ahead and are already being developed in various parts of Greece.

The Mytilineos group has already launched an 826-MW CCGT in Agios Nikolaos, Viotia, northwest of Athens. GEK TERNA and Motor Oil have joined forces for an 877-MW Thermoilektriki Komotinis gas-fueled power station. More recently, power utility PPC, DEPA Commercial and Damco Energy reached an investment decision to develop an 840-MW gas-fueled facility in Alexandroupoli, northeastern Greece.

 

PPC’s ENEL Romania takeover talks at price under local standards

Power utility PPC appears to have reached an advanced stage in its negotiations with Italy’s ENEL for the acquisition of the latter’s Romanian subsidiary ENEL Romania, the various aspects of the deal said to be at price levels well below Greek market standards.

PPC’s offer for ENEL Romania’s retail division, for example, totaling approximately three million customers, results in a price of less than 90 euros per customer, which is less than half than the cost of recent corresponding acquisitions completed in the Greek market.

Mytilineos’ acquisition of Watt+Volt, an energy supplier with a portfolio numbering 200,000 customers, was worth 36 million euros, or 180 euros per customer.

The ENEL Romania deal’s price concerning networks is also being negotiated at a price level well below the cost of corresponding acquisitions recently completed in Greece. The price paid by Australia’s Macquarie for a 49 percent stake in Greek distribution network operator DEDDIE/HEDNO works out to 20 percent over the level being discussed between PPC and ENEL for ENEL Romania’s networks.

The same goes for the Romanian subsidiary’s renewable energy division. For example, Motor Oil acquired ELTECH Anemos for a figure twelve times its EBITDA, whereas the Romanian subsidiary’s RES portfolio is being negotiated at a price level of less than ten times its EBITDA.

PPC is negotiating a full acquisition of ENEL Romania for a takeover promising to expand the Greek utility’s interests in the Balkans, with the region’s fastest-growing economy as a base.

 

Turbine installed at GEK TERNA-Motor Oil gas-fueled power station

A Siemens HL-class gas turbine, the first to be used in Greece, has been installed at a prospective 877-MW state-of-the-art combined cycle, gas-fueled power station being developed by GEK-TERNA and Motor Oil Hellas in Komotini, northeastern Greece, planned to be launched in early 2024, Motor Oil Hellas has announced.

The project, Thermoilektriki Komotinis, an investment estimated to be worth 375 million euros, promises to be one of the most efficient power plants in Greece. Once operational, it will emit 75 percent less CO2 than lignite-fired power plants.

Thermoilektriki Komotinis is the second gas-fueled power station that has undergone development in Greece over recent years, following the construction, by the Mytilineos group, of an 825-MW unit in Viotia, northwest of Athens, whose commercial launch is imminent.

Construction of a third gas-fueled power station, in Alexandroupoli, northeastern Greece, as a joint venture by power utility PPC, gas utility DEPA and the Copelouzos group, is scheduled to officially commence this Saturday.

The country requires at least three additional power stations to secure energy sufficiency, according to a recent study conducted by power grid operator IPTO for 2025 to 2035.

Greek energy market attracting major interest at London roadshow

Foreign funds are expressing major investment interest in Greece’s renewable energy market as well as the country’s plan for green energy transportation from the Middle East, while major international energy groups appear extremely interested in Greek upstream developments and the ongoing transformation of Greece as a natural gas hub, a series of one-on-one and group meetings between highly ranked officials of Greek energy groups and international investors have highlighted following the first day of a roadshow in London.

The London event, co-organized by the Athens bourse and Morgan Stanley, has already indicated that 2023 could be a bumper year for foreign investments in Greece’s energy sector.

Of 29 Greek companies taking part in the road show, ten hail from the energy sector, a representation highlighting the strong international investment interest in Greece’s energy market.

Power grid operator IPTO’s ADMIE Holdings, Cenergy, Ellaktor, Elvalhalcor, Helleniq Energy, Motor Oil, Mytilineos, PPC, TERNA and Viohalko, the ten Greek energy groups taking part, will hold further meetings with investors today. These sessions could lay the foundations for new deals.

Over 300 meetings are scheduled to take place at the London event. Many of these will purely focus on energy matters.

 

Revythoussa LNG slot prices soar, driven by Balkan exports

Driven by LNG export potential to Bulgaria and the wider eastern European region, energy companies have submitted bids of between 3.5 and 4 million euros for slots at gas grid operator DESFA’s LNG terminal on the islet Revythoussa, just off Athens.

These bids, made at an ongoing DESFA auction offering slots for the next four years, are roughly three-and-a-half times higher than price levels recorded last year.

Two Bulgarian companies, Bulgargaz and Kolmar, as well as Greece’s power utility PPC and Motor Oil, were the winning bidders at the auction’s session yesterday, securing four of eight Revythoussa slots offered. The other four slots are expected to be taken by bidders today.

Earlier in the week, on Monday, gas company DEPA secured eight slots for 4 TWh, Mytilineos secured five slots for 5 TWh, as did and Bulgaria’s MET.

Greece’s recent transformation as a strategic gas exporter for the wider region has prompted a surge in demand for slots at the Revythoussa LNG terminal.

During the year’s first nine-month period, the country’s gas exports increased by 293 percent, representing over 20 TWh. Bulgaria was the main recipient. Greece has been covering the neighboring country’s gas needs for some months now, following natural gas pipeline disruptions from Russia.

 

Natural gas, heating oil retail prices level for November

The recent plunge in international gas prices appears to have neutralized a retail price advantage that had been gained by heating oil, made possible by generous subsidies. Natural gas and heating oil are now at similar price levels for November.

Though natural gas suppliers have yet to announce retail prices for November, their price levels for the month are widely expected to remain unchanged compared to October, at a level of between 11 and 12 cents per KWh.

Besides a subsidy offered by gas utility DEPA, gas prices are also shaped by the TTF benchmark average of the previous month. Amsterdam’s TTF benchmark ended October at levels of between 135 and 145 euros per MWh, well below levels of 200 to 210 euros per MWh a month earlier.

In response, DEPA has greatly reduced its subsidy for consumers from 9 cents per KWh to 2.5 cents per KWh. Deducting the reduced 2.5 cent subsidy results in a retail natural gas price of 11 to 12 cents per KWh.

Heating oil will also be sold at roughly this level, or marginally higher, announcements made yesterday by the country’s refineries and their retail arms, for an extended period of heating oil subsidies, have shown.

ELPE announced it would extend its 6 cent heating oil subsidy (7.5 cents with VAT) until November 15, while Motor Oil informed it will continue offering a price as competitive as that of October.

As a result, consumers can expect heating oil to be priced at less than 1.40 euros per liter for at least another 15 days.

Motor Oil’s MORE subsidiary eyes new RES projects, steps abroad, storage

MORE (Motor Oil Renewable Energy), the Motor Oil group’s new green-energy subsidiary, just officially presented, will strive for further RES portfolio growth, expected to reach 1 GW once an agreement with ELLAKTOR is finalized, involvement in new green technologies, including energy storage, as well as expansion abroad as its next steps.

MORE already ranks as one of the country’s biggest RES producers, following its agreement with ELLAKTOR, officials noted during yesterday’s official presentation of the Motor Oil subsidiary.

MORE stands to be a company with an EBITDA figure of approximately 130 million euros and capital investments of 1.6 billion euros, they said.

Speaking at MORE’s presentation, Petros Tzannetakis, Motor Oil’s deputy managing director, described the new subsidiary as a significant pillar in Motor Oil’s development as a vertically integrated energy group.

Victor Papakonstantinou, MORE’s general manager, noted Motor Oil group’s involvement with renewable energy is a conscious choice as both the sun and wind are key features of Greece, represent low energy production cost, have a small environmental footprint, and enable electricity generation close to points of consumption, facilitating distribution.

MORE is aiming to complete its deal with ELLAKTOR by the end of the year, company officials noted.

RAE approvals steps towards new FSRUs off Corinth, Thessaloniki

RAE, the Regulatory Authority for Energy, has approved Elpedison’s Thessaloniki FSRU project as well as the final phase of a market test for Motor Oil’s FSRU plan, Dioryga Gas, off Corinth, west of Athens.

For Elpedison, the authority’s approval essentially signals the go-ahead for the Thessaloniki FSRU (floating storage unit) as the decision awards a 50-year project license until 2072.

A 50-50 joint venture involving Elpedison’s two partners, Edison and HELLENiQ, formerly known as Hellenic Petroleum (ELPE), the Thessaloniki FSRU will be developed at the Thermaic Gulf, just a few kilometers from Dock 6 at Thessaloniki port.

The Thessaloniki FSRU, planned to consist of four storage tanks offering a total of 170,000 cubic meters, is scheduled to be launched in 2025.

Besides approving guidelines for the final phase of Motor Oil’s market test concerning the Dioryga Gas FSRU project off Corinth, RAE also approved a capacity boost for this project, to 210,000 cubic meters from 170,000 cubic meters, as had been specified in the project’s original license, as well as Diorygas Gas’ transfer to Motor Oil’s MORE subsidiary, also hosting the petroleum group’s RES projects.

 

Some investors behind CCGTs stalling, others forging ahead

Energy crisis uncertainty and the singling out of natural gas for its exorbitant price levels are factors troubling investors behind new combined cycle gas turbine (CCGT) plant projects.

Some investors have stalled their CCGT investment plans, waiting to see how developments unfold concerning gas prices and availability, while, on the other hand, more aggressive players are forging ahead.

Elpedison has yet to reach an investment decision on a new 860-MW CCGT at the company’s Thessaloniki refinery facilities. Despite having begun some preliminary work, Elpedison’s partners – HELLENiQ ENERGY, until recently named Hellenic Petroleum (ELPE), and Edison – have put their Thessaloniki CCGT project on hold to appraise international and European energy market developments.

If developed, Elpedison’s prospective 860-MW Thessaloniki facility would add to the joint venture’s two existing facilities. The HELLENiQ ENERGY petroleum group is also planning an FSRU at the Thermaic Gulf, which would establish a Thessaloniki hub for the company.

The Copelouzos group has also been troubled by the adverse market conditions. Group member Damco Energy had secured a license for an 840-MW CCGT in Alexandroupoli, northern Greece, but the high cost of natural gas and overall market uncertainty prompted the company to not go it alone and seek partners for the project.

According to sources, power utility PPC and gas company DEPA Commercial have joined Damco Energy for the Alexandroupoli CCGT. Official announcements on the partnership are expected soon.

Elsewhere, the GEK TERNA and Motor Oil groups have begun working on an 877-MW CCGT in Komotini, northeastern Greece. The former, in its publication of first-half results, noted work on the “Thermoilektriki Komotinis” project is continuing, its scheduled launch unchanged for 2024.

 

 

 

 

 

NRG striving for leading role in country’s electric car market

Retail energy firm NRG, a member of the Motor Oil group, is aiming for a leading role in Greece’s electromobility market and has set ambitious objectives, including comprehensive in-charge solutions for businesses and households and an increase of the company’s recharging stations around the country from 500 at present to 1,000 by the end of the year.

New recharging station installations, through business-to-business deals, are being planned by NRG for key points, including at hotel facilities, corporate buildings, supermarket chains and shopping centers, followed by households.

NRG has already established agreements with two supermarket chains, My Market and Masoutis. The agreement with My Market involves the installation of 500 recharging stations at 250 points by the end of 2023, while the Masoutis deal entails the installation of 300 recharging stations at 150 points.

NRG has also reached hotel-sector deals with Costa Navarino and the Greco Hotel group, and, to date, has installed recharging stations at over 80 hotel points.

Covering 70 to 80 kilometers with an electric car costs approximately 6.50 euros, well below the fuel cost tallied by a conventional car model, estimated at 16 euros.

At present, approximately 13,000 plug-in hybrid cars are being used in Greece. Some 4,000 electric cars are in use.

 

Major industries turning to natural gas alternatives

Energy-intensive industries are abandoning, one after another, natural gas as an energy source and turning to alternatives in order to contain their operating costs.

Aluminium of Greece has switched to diesel for smelting procedures at its Agios Nikolaos facility in Viotia, northwest of Athens, while Motor Oil, has begun using naphtha for some of its energy needs, in place of natural gas, whose price levels have spun out of control.

According to sources, another major industrial player, ElvalHalcor, is also examining LPG as an alternative to natural gas, which the company uses for its aluminum and copper smelting furnaces.

However, this fuel switch cannot be carried out instantly as specialized studies focused on safety matters must precede the change. In addition, equipment needed for this fuel switch is not readily available. Also, ElvalHalcor is examining the extent of LPG availability in Greece as an industrial enterprise of its size would require big amounts.

European Commission energy crisis measures set to be announced, which will require energy savings and discourage the use of natural gas, are driving industrial players to seek energy source alternatives.

 

Diesel totaling 500,000 cubic meters part of emergency plan

A total of approximately 500,000 cubic meters of diesel will be required by five natural gas-fueled power stations to run on diesel should Russian gas supply be totally disrupted, authorities involved in the country’s emergency energy plan have estimated.

The turn to diesel, along with lignite, is part of the country’s wider emergency plan. The strategy’s diesel refueling effort at the five power stations, a procedure to last 16 hours a day over a period of between 100 and 120 days, is feasible, officials representing the Hellenic Petroleum (ELPE) and Motor Oil refineries informed an energy ministry meeting yesterday that also involved RAE, the Regulatory Authority for Energy.

The refinery officials believe the emergency plan’s additional capacity required for a three-month period from January through March, 2023, seen is a crucial period, is feasible, despite heightened diesel demand expected in the industrial sector.

Logistical issues stand as the plan’s biggest challenge as the refineries will need to ensure uninterrupted overland diesel supply to power utility PPC’s power station in Komotini, northeastern Greece, and Elpedison’s facility in Thisvi, northwest of Athens, both geographically demanding as a fleet of fuel trucks will need to be assembled for overland supply to the two units. The number of trucks and this supply plan’s cost remain undetermined.

PPC’s power station in Lavrio, southeast of Athens, and Elpedison’s power station in Thessaloniki do not face such issues as both these facilities are situated close to ports.

 

 

 

Power producer diesel reserves focus of emergency meeting

Top-ranked officials representing the country’s Hellenic Petroleum (ELPE) and Motor Oil refineries, electricity producers, as well as RAE, the Regulatory Authority for Energy, will take part in an emergency meeting called for today by the energy ministry to address diesel safety reserves and a conversion to this energy source by a number of natural gas-fueled power stations should Russia completely disrupt its gas supply.

According to a RAE plan, five natural gas-fueled power stations will run on diesel should Moscow turn off the taps. These facilities will need to maintain an adequate level of diesel reserves covering the emergency plan.

Diesel reserve level requirements for these power stations have been increased, up from 5 to 20 days of consumption, or maximum storage capacity. Electricity producers must reach the increased safety levels by November 1.