The senior vice-president of Statoil's Natural Gas business unit has lauded his company's contribution to a major district heating scheme and says the German energiewende or energy transition will not succeed without the support of gas-fired power plants.
The Lausward scheme perfectly demonstrates how gas power and heating networks can work well together.
Statoil (NYSE: STO) signed a 15-year agreement with Stadtwerke Dusseldorf to supply its 600 MW Lausward gas-fired cogeneration power plant and Rune Bjørnson (pictured) asserted Statoil confidence in the necessity for gas power in general.
"This new partnership with Stadtwerke Düsseldorf is a stepping stone for Statoil's strategy to promote gas in the power segment throughout Europe in general, but in Germany specifically.
"Without highly efficient and flexible gas plants, the German Energiewende will not be successful. The agreement was possible despite very unfavourable regulatory framework for gas-to-power. Natural gas is the cleanest of all fossil fuels and can contribute to more than 50 per cent CO2 emission reductions compared to coal."
The power plant will become one of the most efficient plants worldwide due to heat production that will be used in the district heating system.
The agreement builds on the liberalising gas, power and emissions markets and the available market price indices to enable risk and reward sharing between parties. It represents a new type of partnership in the German gas-to-power market.
The concept enables Stadtwerke Düsseldorf to run the plant in the most economical way, including steam production for district heating.
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