Energy Briefs Issue 71

++jalisco++US$757.5 billion to be invested in Jalisco’s electric network

The Federal Government announced the CC Guadalajara I project along with an investment amounting to US$830 million for power generation in western Mexico. This same metropolitan area will receive the greatest benefits. Guadalajara will be generating more electricity. Natural gas will be used as fuel to ensure the optimum development of the infrastructure in order to have sufficient high quality power at competitive prices. The purpose is to foster, guide and enable comprehensive green growth which will preserve nature while generating wealth, competitiveness and employment. In addition, the aim is to strengthen domestic policy on climate change and promote environmental stewardship.

++sonora++Sonora invests in solar energy research

The Central Tower Experimental Field, Campo Experimental de Torre Central (CEToC) has been created in the Sonora Desert for research and the development of technology that generates power from solar energy. The plant has a solar concentration system that allows obtaining heat for several processes, but the main one is for generating power. The capacity of the field, where US$1.15 million has been invested, includes two thermal megawatts. It consists of 23 heliostats and the plans in 2014 are to install 20 more covering 36 square meters each. The system was installed by the University of Sonora and UNAM (Autonomous University of Mexico), together with the National Council for Science and Technology, i.e. Consejo Nacional de Ciencia y Tecnologia (Conacyt).

++petrofac++Petrofac may exploit shale gas in Mexico

Petrofac wants to be among the first companies to exploit shale gas in Mexico using hydraulic fracking technology. This Houston-based petroleum company is one of the first foreign companies to operate oil fields in Mexico. The work will be carried out through two integrated service agreements entered into with Pemex. Other companies, such as Halliburton and Schlumberger are also expected to enter agreements. Beatriz Camarena, Co-owner of Productores Energy, LLC, said that investors in the energy sector are waiting for Mexico to complete the regulatory laws for the sector in order to have a clear, stable, and applicable ruling framework.

++pacific_rubiales_energy++Colombian petroleum company excited about the opening of the energy sector in Mexico

According to information from Bancolombia, the oil company Pacific Rubiales is excited about the up-coming opening of the energy sector in Mexico. According to Bancolombia’s report, during an analysts encounter in New York, officers from Pacific Rubiales spoke about a possible joint venture with the state-owned company Petroleos Mexicanos (Pemex). Pacific Rubiales, the second oil company in Colombia, would then become one of the first companies to enter into this type of agreement in Mexico, once the pending changes are enforced.

++penoles++Peñoles will have a new electric power generation plant

The Mexican mining company Peñoles announced a project for the generation of electric power based on diesel. It will provide for an expansion in their capacity to generate electricity. Peñoles pointed-out that the investment in this project amounts to US$200 million, and It is expected to generate 6.57 gigawatts per hour with a consumption of 1,749 cubic meters of diesel. Peñoles estimates a 480 megawatt increase in their demand for electric power in 2014. The Mining Chamber of Mexico explains that power generation with diesel is becoming increasingly common among companies in the mining sector, representing 66.9% of total energy consumption due to its low cost, which runs well below the price of electricity.

++nyce++Boom in energy-related standards in Mexico

According to Juan Pablo Nava, Chief Operations Officer with NYCE, the firm specializing in standards, there has been a boom in the last two years in Mexico regarding the ruling of products and services related to energy efficiency. He explained that the current Federal Government has expedited the work left by previous administrations, which had entered into agreements to reduce carbon emissions into the environment and expedite more efficient use of non-renewable resources. As an outcome, they are therefore developing a number of standards to foster the use of equipment with much greater energy efficiency.

++sinaloa++Construction of Los Mochis gas pipeline has begun

Pedro Joaquin Coldwell, Energy Minister, headed the ground-breaking ceremony for the construction of the Topolobampo-El Encino gas pipeline in Los Mochis, Sinaloa. In addition to Minister Coldwell, the event was attended by the head of the state-run power generation and distribution company, Comision Federal de Electricidad (CFE), Enrique Ochoa Reza. He said that with the construction of the gas pipeline electricity will be produced for a lower cost. In addition to being environmentally friendly, he added that jobs will be generated and economic growth will be promoted. Thanks to Energy Reform, he reiterated, CFE will evolve from being an electric company to become an energy company capable of trading natural gas, in addition to electricity-related services.

++pemex++Pemex modernizes their ships fleet

Pemex has already launched a plan to modernize its oil tanker fleet. The age of some ships ranges between 29 and 41 years old. The modernization program will total over US$250 million, and its purpose includes substituting around 20 ships in the minor fleet that are obsolete and inefficient to operate. The program started last year by changing three ships, and this year four more have joined the fleet. Two double hull tankers started operating last March. They will distribute fuel in the Gulf of Mexico and the Pacific Coast as part of Pemex’s Oil Tankers Fleet Modernization Program.

++queretaro_escudo++Mega-plant for wastewater treatment inaugurated in Queretaro

The companies Operadora Queretaro Moderno (OQM) and Vert Energy inaugurated a wastewater treatment plant in the El Marques Municipality of Queretaro. It will provide service to around 80,000 people when it is operating at full capacity. Fernando Delgado, Vert Energy CEO, said during an interview that the plant has a technological system to catch solids not yet dissolved in the water. The process reduces generation of sludge by 50%. “It is not only a water treatment system,” Mr. Delgado explained, “…but also offers reduced energy consumption, in addition to solving the sludge management problem. It does this by turning sludge into a commodity that can be used in other industries”.

++ge_logo++GE Energy Center invests in efficient lighting

The General Electric Engineering Center (GEIQ) is located in Queretaro and has invested US$200,000 to install LED lighting. This strategy is expected to save 40% in electric power consumption. According to Vladimiro de la Mora, CEO, GEIQ, the savings achieved with this investment will amount to US$380,000 within the next five years. The market value of LED technology in Mexico is US$80 million, according to Robert Torrijos, Commercial Director, Industries with GE. Estimates are that this business will grow 20% in 2014 because industries such as automotive, metal-mechanics and food are putting money into technological changes in lighting.

++mexichem2++Mexichem will invest US$600 million in an electric plant

Mexichem, the chemistry company, will install a new electricity co-generation plant in Veracruz or Tamaulipas. According to Antonio Carrillo Rule, CEO, it will have a capacity of 500 megawatts. Mr. Carrillo explained that such a power station was conceived to take advantage of the opportunities to be opened vis a vis Energy Reform, for instance, since it will feed 16 plants they have here in Mexico and the surplus will be sold. The investment required by a power station of that size is around US$600 million. On this issue, Mr. Carrillo explained that the amount of resources to be allocated to this project is still being analyzed and that they will have a final plan by next December.

++bosch2++Bosch plants in Mexico will use Aeolian energy

Robert Bosch entered into an agreement with Enel Green Power to supply Aeolian energy to seven of their eight plants. In addition, Rene Schlegel, President of Robert Bosch Mexico, announced that power will be supplied to the corporate offices and the distribution centers run by the German company throughout Mexico. Both companies will invest US$150 million in the construction of Stage II of the Dominica Aeolian Park which is located in San Luis Potosi. It will be equipped with wind turbines capable of generating 250 GWh/year, Nicola Melchiotti, General Manager for Mexico and Central America with Enel Green Power, pointed-out. Bosch will consume 25% of the energy to be generated by this Aeolian Park to supply between 60% and 70% of the energy required by their plants and distribution centers. This strategy will prevent the emission of 38,100 tons of carbon dioxide annually. This is equivalent to CO2 emissions from 7,300 cars.

++cfe++Spanish firm will build the stage for a thermal power station in Mexico

The state-owned power generation and distribution company, Comision Federal de Electricidad (CFE), entrusted to the Spanish company Acciona, the design, procurement, construction and set-up of the thermal power station identified as Baja California Sur V. The company, which manages infrastructure, renewable energy, water and utilities, said that the plant, located at La Paz, will have a net capacity of 46.8 megawatts and will be completed by June 2016. The power station will therefore contribute to greater energy efficiency in the zone, closely observing the international emission standards set by the World Bank.

++vive_energia++Yucatán will have their first Aeolian Park in 2015

The company Vive Energia will invest US$192 million in Dzilam Bravo, Yucatan, in order to build the first Aeolian park in the state. It is expected to start operating in September 2015. From the total investment, US$138 million will be allocated to infrastructure. In total, this will have 36 air-generators with an installed capacity of 70 megawatts. It will also include a transmission line that will connect the Park to the CFE substation located 27 kilometers away. The rest of the investment corresponds to maintenance and operating costs for the Aeolian Park throughout its 20-year life.

++alstom++Alstom enters agreement with CFE

The French company Alstom made public today that they have entered into an agreement for US$125 million with Mexico’s state-owned power generation and distribution company Comision Federal de Electricidad (CFE). This project will create over 2,000 direct and indirect jobs. The agreement also involves the French company Isolux. It was entered into for the conversion of two 158 megawatts units in the Altamira Thermal Power Station. The purpose of the services to be provided by these French companies will be to change the fuel these units need to operate. The reconversion will provide for a substantial decrease in the operating cost of these units, since the drop in consumption is considerable.

++cemex++Cemex will finance the construction of two Aeolian Parks

The Mexican Cemex, one of the largest cement companies in the world, obtained financing to build two Aeolian parks in northern Mexico. The effort will require an investment amounting up to US$650 million. Cemex had been working for two years on structuring the financing for the Ventika Project, which considers the construction of two Aeolian Parks in General Bravo, Nuevo Leon, with a capacity of 126 megawatts each. In a separate press release the Spanish Group Acciona said that they have been granted the agreement for the construction, operation and 20-year maintenance of both Ventika Aeolian Parks.