Siemens Power advances coal gasification position

Erlangen, Germany -- Siemens Power Generation Group is acquiring Sustec-Group’s coal-to-electricity technology and engineering activities. The deal includes Future Energy GmbH and Sustec¹s 50% stake in a Chinese joint venture with Shenhua Ningxia Coal Group, Siemens announced 16 May.

Siemens said it also plans to build a 1000 megawatts (MW) coal gasification plant at the Spreetal, Saxony, to accelerate development and testing of the next gasifier generation.

Sustec’s so-called GSP entrained flow gasification process can utilise biomass as well as petroleum coke and refinery residues as feedstocks ­ as well as a wide range of coal grades.

The deal gives Siemens a key technology for environment-friendly power generation that could "re-invigorate interest in integrated gasification combined cycle (IGCC) technology," Siemens Power said.

According to Paula Hollywood of ARC Advisory Group, the acquisition will enable Siemens to increase its footprint in the power generation industry and take a giant leap in coal gasification technology.

"The challenge for all parties developing IGCC technology lies in commercialising the technology such that coal use remains economically competitive despite the additional costs associated with achieving zero emissions," the ARC analyst commented.