Ataseven Energy Production, a Turkish energy company operating in the wind power sector, and Epuron, a German company operating in the fields of wind, solar power and bio-energy, have announced their plans to make a joint investment in wind power in Turkey.
Speaking at a press conference on Saturday, Mustafa Serdar, Chairman of Ataseven Energy, said they applied to the Energy Market Regulatory Authority (EMRA) for licenses to establish ten wind power plants with a total capacity of 2,986 megawatts. Serdar said they expect to profit from Turkey's huge potential in wind power. He explained that they plan to establish the new plants in Bursa, Izmir, Balikesir and Manisa.
Joachim Muller, Epuron's Executive Board Member for Finance, said there is a good investment environment in Turkey and that the government should ease the bureaucratic procedures for renewable energy investment. He underlined that the introduction of incentives will boost energy investments in Turkey.
Turker Baloglu, Epuron Turkey Director, said the company expects to invest around EUR 700 million in Turkey.
The wind energy sector is in its infancy in Turkey, where only 17 percent of the 198 billion kilowatt hours of electrical energy generated in 2008 came from renewable energy sources. Most of the sites that are feasible for the operation of wind energy power plants in Turkey belong to the Treasury. This acts as an advantage for building wind energy plants as the state promotes the usage of this land for wind energy without any fees and guarantees the purchase of the energy produced by these plants for seven years. The government has plans to extend this period to ten years.
Russia could spend USD 7 billion on Turkish nuclear plants
Sergei Shmatko, the Russian Minister of Energy, said last week that a state-backed consortium could spend up to USD 7 billion on a project to build four nuclear reactors in Turkey, whose total cost is USD 18-20 billion. Speaking on the sidelines of an energy conference, Minister Sergei Shmatko said a consortium led by state nuclear engineering firm Atomstroyexport and electricity trader Inter RAO have submitted a letter of intent to participate in the Turkish government tender.
The consortium is also to include a Turkish minority partner that Shmatko identified as Ciner Group. "We have to provide 30-35 percent of the funds from our own resources, and we will need to secure the rest on the market" Shmatko said. “The Turkish government does not intend to provide any of the funding”, he added.
Shmatko added that the four reactors would each have a capacity of 1,200 megawatts, and that the consortium could receive about USD 60 billion by supplying more than 400 billion kilowatt hours of power over 15 years. Ankara is seeking to develop a nuclear power industry in order to reduce its reliance on foreign energy imports and boost capacity to meet growing demand. Atomic energy is expected to cover 20 percent of the nation's electricity needs by 2030. Shmatko said Turkey wants ultimately to build at least 25 nuclear reactors.
Turkey to invest more in geothermal energy
Hilmi Guler, the Turkish Minister of Energy and Natural Sources, stated that Turkey will invest more in geothermal energy as part of a planned USD 120 billion investment program by 2020.
"Around USD 120 billion will be invested by 2020 in the Turkish energy sector and geothermal energy will have a substantial share of that", Hilmi Guler told news reporters before the opening of an international geothermal energy workshop in Istanbul.
Guler said the government introduced new legislation on renewable energy resources, calling on private investors to take advantage of the country's geothermal potential, which he said is the greatest of Europe.
Turkish electricity to be connected to EU system
Ilhami Ozsahin, General Manager of Turkish Electricity Transmission Corporation, said they are continuing their efforts to create a synchronized interconnection between the Turkish electricity system and the European electricity system and added, “There is demand for renewable energy in the European countries. Turkey has massive renewable energy sources. Companies may increase the level of renewable energy in their countries by means of purchasing Turkey’s energy. This may contribute to an increase in renewable energy investments in Turkey".
RWE, OMV establish Caspian Energy Company
RWE Supply & Trading and OMV Gas & Power have established the Caspian Energy Company in the UK. The company has been set up in order to explore infrastructure solutions that will link the gas resources of the Caspian region to Europe.
The joint ownership of the Caspian Energy Company (CEC) by both RWE and OMV is subject to approval by the relevant competition authorities. Once approval is granted, RWE and OMV will hold equal shares of CEC.
CEC will shortly commence a detailed analysis into gas transport infrastructure options that could provide Europe with access to natural gas from the eastern side of the Caspian Sea.
Based on the study's outcome, CEC will then enter into the development, construction, ownership and operation of gas transport systems across the Caspian Sea.
The respective gas could then be fed into the existing South Caucasus gas pipeline or other newly built pipelines, and from there on into Turkey and the Nabucco gas pipeline, which will form the backbone of the Southern Gas Corridor.
Alstom Hydro to supply equipment for Turkish hydropower plants
Alstom Hydro has signed a contract with Turkey-based Enerjisa Enerji Uretim to supply equipment for three new hydropower plants being constructed on the Seyhan and Goksu rivers in the Adana province in southern Turkey.
Enerjisa Enerji Uretim is owned by Austria-based Verbund and the Sabanci Group, and aims to achieve an installed capacity of 5,000MW and expects to handle 10% of the Turkish energy market by 2015.
Once completed, the Kavsakbendi, Kopru and Menge power plants will have a total power output of 417MW, contributing approximately 1,200GWh to Turkey's annual power generation.
The overall contract value is around E100 million, out of which more than E70 million is for Alstom Hydro. The company is responsible for the design, supply, transportation, supervision and commissioning of the turbines and generators. Alstom's consortium partner, GES, is responsible for balance of plant and overall installation of equipment.
The Kavsakbendi plant will comprise of three 61MW turbine generator units rated at 66MVA, while the Kopru facility will comprise two 74MW units rated at 80MVA. The Menge plant will comprise two 43MW units rated at 50MVA. The three power plants are expected to begin commercial operations between 2010 and 2011.
Iberdrola board approves proposal to reinforce organizational structure
Spanish energy company Iberdrola has announced that its board has approved the proposal to reinforce the company's organizational structure by setting up two departments concerning international operations and business development.
The new international department will be headed by Amparo Moraleda, who immediately prior to this appointment was chairman of IBM's subsidiaries in Spain, Portugal, Greece, Israel and Turkey.
EDF Energies Nouvelles invests in Turkey
French clean energy company EDF Energies Nouvelles has acquired a 50% interest in Polat Enerji, a Turkish wind power developer.
This transaction will enable EDF Energies Nouvelles (EDF EN) to establish itself in the Turkish market. It reportedly fits in with EDF EN's strategy of expanding into burgeoning high-potential markets. Polat Enerji owns two wind farms in service with 50MW in total capacity, and an 80MW facility under construction, as well as four projects at advanced stages in their development, representing capacity in excess of 200MW. All these assets are equally owned in partnership with another Turkish company.
David Corchia, CEO of EDF EN, said: "We are pleased to be moving into the Turkish market alongside Adnan Polat, a very high-quality partner, with a longstanding presence in Turkey. We share common goals in renewable energies and the desire to go ahead with profitable projects carrying controlled risks. Turkey represents a country with great potential in which EDF EN will be able to harness the benefit of both its wind energy and solar energy expertise."
Turkey nuclear decision seen by Dec 20
Turkey's Atomic Energy Board will submit its decision by Dec. 20 on a nuclear power plant tender that saw a single bid submitted by a Russian-led consortium, Turkey's Energy Minister Hilmi Guler said on Wednesday. The board's approval is necessary before state-owned electricity firm TETAS can make the final technical decision on whether or not to move ahead with the tender.
A decision on the bid from Russian firms Atomstroyexport and Inter Rao and Turkey's Park Teknik Group has been delayed due to requests for additional details of the consortium's plans. The plant is planned for a site at Akkuyu near Mersin on the Mediterranean coast, with a capacity of 4,000 megawatts, plus or minus 25 percent.
Volvo Truck, Petrol Ofisi sign co-operation agreement
Volvo Truck and Turkey-based oil refiner and supplier Petrol Ofisi have signed a co-operation agreement, pursuant to which, Volvo truck buyers who purchase their fuel from Petrol Ofisi will gain special advantages which will help them buy new Volvo vehicles at discount prices.
Turkish, Israeli, Indian ministers to meet for Med Stream project
Turkey's Energy Minister Hilmi Guler said he would meet his Israeli and Indian counterparts in the coming days over the Med Stream oil pipeline project. Med Stream, a multi-purpose offshore pipeline project to connect Turkey and Israel via the Mediterranean Sea, is planned to transport oil, natural gas, water, electricity and fiber optic cables. India is interested in the project to import oil from the line through the Red Sea with loading tankers from an Israeli port. The project is estimated to cost around 8 billion euros.
Normally, crude oil is shipped to the Far East in 50 days, but when the Med Stream is completed, transportation of crude oil from the Red Sea would take only 19 days. Feasibility studies of the pipeline are planned to begin by the end of this year and are expected to be completed in the summer of 2009. Construction of the pipeline is planned to start no later than early 2010. Guler also said the Indian oil company had been cooperating with the Turkish Petroleum Corporation (TPAO) in Libya, and that similar cooperation should be developed in other countries.
Turkey, Norway discuss cooperation on energy
Cooperation on energy is on the Norwegian crown prince’s agenda for his meetings with Turkish officials in Ankara. Turkey and Norway are preparing to launch joint projects for building hydroelectric plants, investing in solar energy and oil explorations in the Black Sea.
The joint projects would include building hydroelectric plants, investing in solar energy and oil explorations in the Black Sea.
On the same day, Turkey and the Netherlands discussed how cooperation on wind power could be conducted, during another forum held on the occasion of the visit of Dutch Foreign Trade Minister Frank Heemskerk.
"We are in need of 500 kilovolt home-style wind turbines and 2.5 megawatt turbines, we could make a cooperation with you on that and are awaiting a long-time marriage from you," Güler said.
Exxon, TPAO Black Sea investment up to $450 mln
U.S. oil major Exxon Mobil and Turkey's state-owned petroleum firm TPAO will invest between $400-450 million in the first stage of oil exploration in the Black Sea, TPAO chief executive Mehmet Uysal said on Wednesday. He was speaking at a ceremony where the two sides signed an agreement to explore for oil in the sea, which lies to the north of Turkey.
Drilling is expected to begin by the end of 2009 or the start of 2010 if oil is found in the Black Sea, where officials estimate the volume of reserves at 10 billion barrels.
Enka Power to implement GE's fuel-efficiency upgrades at Turkish power plants
GE Energy has announced that Enka Power has become the first global customer to invest in GE's fuel-saving technology for gas turbines. The efficiency upgrades will be made at two of Enka Power's Turkish power plants at Adapazari and Izmir.
When completed, the upgrades are expected to increase the total output of five combined-cycle blocks by approximately 35MW, or enough power to serve an additional 150,000 Turkish households. GE's fuel saving technology will help each gas turbine reduce carbon release by 1% per MW produced.
Ricardo Cordoba, president of GE Energy Western Europe and Northern Africa, said: "Increasing the efficiency of the country's electricity production to meet this demand is a cornerstone of the Turkish government's plans for economic growth and related societal improvements."
EWE increases stake in Bursagaz and Kayseri Dogalgaz
German power and natural gas utility EWE has increased its interest in Turkish regional energy suppliers, Bursagaz and Kayseri Dogalgaz, from 39.9% to 80% in each case.
The regional utility company Bursagaz, with 130 employees, has more than 500,000 contracts for natural gas supply in the Bursa region of northwestern Turkey. Kayserigaz, with 143 employees, supplies approximately 130,000 natural gas customers in the Kayseri region in Turkey.
Sabancı starts work on three power plants
Sabancı Holding, a Turkish company with interests in finance and energy, started work on three power stations it's building with Austria's Verbund. The three plants, in the northwestern town of Bandırma and the southern cities of Kahramanmaraş and Adana, will cost $1.1 billion and will meet 4 percent of Turkey's electricity needs when completed.
Turkey and Iran have resolved problems on planned investment in the South Pars gas field and they may sign a production accord in November, Turkish Energy Ministry sources told Reuters last Thursday. They said Turkey was opposed to an Iranian plan to build a new pipeline to transport natural gas to Europe and that the planned Nabucco project pipeline should be used instead.
France's Schneider Electric to grow in Turkey
Christian Wiest, the chairman of the international department of French-based Schneider Electric and a member of the executive board of the company, said that the company would make new investments in Turkey. "We are employing 1,250 workers in our facilities, and we are investing in Turkey because Turkey is close to the Middle East, North Africa and Caucasus and Turkey has an educated and qualified labor force," Wiest also said.
Vestas to supply V90-3MW turbines for Ayyildiz project in Turkey
Vestas, a developer of wind power systems, has received an order for five units of its V90-3MW wind turbine for installation in the Ayyildiz project located in the Balikesir province in the northwestern part of Turkey.
With an estimated annual production capacity of approximately 57GWh, the Ayyildiz wind power plant is expected to save the environment from almost 25,000 tons of CO2 and will be able to meet the electricity needs of more than 9,000 Turkish households. Delivery of the turbines is scheduled to start in the first quarter of 2009, and the project will be completed by the third quarter of 2009.
Chinese investors come to Mersin for energy investments
Serafettin Asut, CEO of Mersin Chamber of Commerce and Industry, has stated that Chinese firms are getting prepared to make investments in Mersin following the cooperation protocol signed on 17 September between China Suzhou Innovation Park and Mersin Technopark and that a firm located in the Mersin Technopark has drawn the attention of the Chinese firms due to a product it developed for human health. Asut said, "After the simulation process, Chinese firms intend to implement industrial design and application operations for the device in laboratories that are appropriate for nanotechnology production."
Czech CEZ buys 37.4 pct of Turkey's Akenerji
The Czech power utility CEZ purchased a 37.4 percent stake in Turkey's Akenerji for $302.6 million. CEZ, the largest power producer in central Europe, will pay $302.6 million (224 million euros) for the shares to Turkeys Akkok Group, which will retain 37.4 percent of the distributor.
Akenerji is planning to raise energy output to 3,000 megawatts in five years from the current 500 megawatts in cooperation with
CEZ. "This increase will require investment worth about $3 billion (2.2 billion euros)," Novakova added.
In the summer, a grouping comprising CEZ and Akenerji won a tender for the distribution network in the Sakarya province in northwestern Turkey, offering $600 million. The Czech state owns about two-thirds of CEZ, which already figures among Europe's top 10 electricity companies in terms of production capacity and turnover.
It has rapidly expanded in recent years across central and southeastern Europe, buying up power plants and distribution companies with the avowed aim of becoming the biggest player in the region. The group made a profit of 1.75 billion euros in 2007.
Turkey to sell most power grids by end-2009
The Turkish Privatization Administration (OIB) expects to sell the majority of Turkey's remaining electricity distribution grids by the end of 2009, OIB president Metin Kilci told Reuters. Turkey plans to sell 20 power grids and has so far sold four. The most recent sales were for a grid servicing central Anatolia, which brought the highest bid of $440 million, and another grid in eastern Anatolia. Those tenders came shortly after the sell-off of a grid serving Ankara and another in northwest Turkey.
Otto cites contingent resources for Turkey's Edirne license
Otto Energy Ltd., Perth, which expects to begin gas sales from western Turkey's Edirne license area in the Thrace basin in mid-2009, said the license is estimated to contain a 8.5 bcf contingent resource in the six discoveries made to date and a further 15.7 bcf in undrilled structures. Incremental Petroleum Ltd. operates the project with 55% interest. Otto Energy has 35% and Turkish partner Petraco has 10%.
EBRD board votes in favor of investment in Turkey
The board of directors at the European Bank for Reconstruction and Development said Tuesday it had voted in favor of investing in Turkey. Turkey has been a shareholder of the EBRD since its inception in 1991, when it was created to encourage former Soviet countries to adopt market economies. Ankara asked in April that its status within the bank be changed to a country of operations.
The EBRD said that the country's application for the change could contribute to market-promoting initiatives that would be "immensely beneficial for the bank as well as for Turkey". The EBRD board, which represents the bank’s 63 governors, reached its decision after a "strategic review of the implications of investment in Turkey", and the issue will now go before the bank's governors at the end of next month.
U.K heralds Turkey as energy corridor
Calling for urgent progress on Turkey's accession to the European Union, a British report advises EU politicians to start scrambling to make headway in Turkey's development as an alternative energy hub for the continent.
A report published by the British House of Commons in late June, revealed the growing strategic importance of Turkey as the major energy gateway alternative for Europe. The House of Commons urged the British government to push for the opening of energy routes through Turkey by scheduling talks on EU accession as quickly as possible.
“Although Turkey, itself, is heavily dependent upon imported energy from Russia and Iran, it has great potential as an energy hub, or gateway, for the European Union, not least because of its strategic position, bordering eight other countries in the region,” said the report, entitled “Keeping the door wide open: Turkey and EU accession.”
Reminding readers that Turkey is a natural hub situated between several vital energy suppliers and consumers of 71% of the world's proven gas and 73% of oil resources, the report emphasized a potentially large role for Turkey in maintaining future EU energy security.
CEZ-Akenerji consortium successfully bids for Sedas
Czech electricity generator CEZ, in partnership with Akenerji Elektrik Uretim, has successfully bid at the auction of the Turkish power distribution company, Sedas. CEZ will account for 50% of the authorized capital, Akenerji will own 45% and Akkok will own a 5% stake. Sedas supplies 1.3 million customers with nearly 8TWh of electricity, while 50% of the customers are industrial consumers.
Martin Roman, chairman and CEO of CEZ, said: "Obviously, we are really pleased with the success in Turkey. It represents important progress in our foreign expansion and it is positive news for our investors, who will surely appreciate our connection to a strong local partner. We find the Turkish energy sector very attractive for us."
The Swedish company started drilling
The Swedish natural gas and oil company Tethys Oil announced that it has started drilling in the borehole of Copkoy-1 in Trakya basin. Tethys has 25 percent share and Ankara centered company Aladdin Middle East has 75 percent share in the license of the borehole of Copkoy-1.
Turkey invites Azeris and Turkmens for ‘energy cooperation’
The Turkish energy minister invited Azerbaijan and Turkmenistan to make joint energy investments in the Black Sea. “We will start drilling in the Black Sea in 2009, and I am inviting you [Azerbaijan and Turkmenistan] to cooperate with us on this drilling project,” Energy and Natural Resources Minister Hilmi Guler said during a conference titled “Oil and Gas Potential in Azerbaijan and Turkmenistan: Energy, Economy and Ecology Cooperation Strategy” in the Azerbaijani capital.
Guler also referred to the Nabucco pipeline project and said this project would be implemented, just as the Baku-Tbilisi-Ceyhan oil pipeline and Baku-Tbilisi-Erzurum natural gas projects have been. The Nabucco pipeline is a planned natural gas pipeline that will transport natural gas from Turkey to Austria, via Bulgaria, Romania and Hungary. It will run from Erzurum in Turkey to Baumgarten an der March, a major natural gas hub in Austria.
Guler also said the Nabucco project would ensure energy security not only in Turkey but also in Europe. Also, Guler stated that Turkey aims to invest some $125 billion in energy projects before 2020 and plans to allocate $100 billion of this amount to electricity generation. Guler stated that oil transportation through the Turkish Straits was up 50 % in the last three years, adding that Turkey aims to construct a Samsun-Ceyhan pipeline project to reduce the amount of traffic through the straits. “Central Asian and Kazakh oil will be transferred to Ceyhan with this pipeline project,” he explained.
Energy strategy under revision
The Energy Ministry has prepared a new “road map” for privatization in energy and the use of domestic resources. To this end, the “Electrical Energy Sector Reform and Privatization Strategy Document,” prepared in 2004, is being revised. The ministry has sent the draft document to the Treasury, State Planning Organization, the Energy Market Regulation Agency and the Privatization Administration for further deliberation.
The draft aims to enhance the free market environment in energy, complete privatizations, supply security and minimize foreign dependence on energy. It also aims to reduce electrical energy costs and maximize use of renewable sources.
The document says nuclear power plants will have a share of at least 8% of electricity production by 2020. By 2030, the figure is planned to rise to 20%. The ministry also aims to increase renewable energy sources' share of electricity production to 25% by 2020. As a result, the share of natural gas in electricity production is planned to fall under 30 percent by the same year.
Three giants step up to invest in Turkish energy
OMV, Lehman Brothers and MET Energy Systems, already partners in the Borasco Electricity Generation Ind., have decided to invest in the burgeoning Turkish energy market through the construction of a natural gas energy production center with a projected capacity of 890 megawatts. The new plant, to be built near the Blue Stream natural gas delivery point in Samsun, will cost the companies 500 million euros.
Borasco was established by MET Group in February 2008 and accepted Lehman Brothers as a partner in March. The company was soon granted a 49-year production license by the Energy Market Regulatory Authority (EPDK). In a written statement, the company announced that they expected the new energy plant to start operating by the end of 2010. The plant will use General Electric's 9FB latest technology equipments for the first time in Turkey, the statement noted.
Dr. Celal Metin, chairman of Borasco Electricity and MET Group's Turkey operations, noted in the statement that the projected natural gas plant will serve as one of the most important energy plants in Turkey for many years with its high productivity properties and low carbon emission levels. Uzay Kozak, CEO of Lehman Brothers Turkey, also shared his remarks in the same statement and said that the investment was a sign of their confidence in the Turkish energy market.
Vinci, Suez may bid for Turkish nuclear license
Vinci SA of France, Brussels-based Suez-Tractebel SA and China Guandong Nuclear Power Group Co. are among international companies to express interest in building Turkey's first nuclear-power station. Representatives from the companies, which all applied for documents in the Turkish government tender, met with Energy Minister Hilmi Guler in the capital Ankara in a final briefing before the September 24 auction, the ministry said. Turkey, the only Muslim member of the North Atlantic Treaty Organization, has U.S. support for its nuclear power program.
€210 million has been invested in the ‘wind’ of Kirsehir
In order to generate energy through wind power, Perfect Wind, a French energy firm, is building a 150-megawatt power plant in Geycek village in Kirsehir with an investment of €210 million at the first stage. The French company which plans to make a 400-megawatt investment of €550 million in Turkey until the end of 2011 intends to make a renewable energy investment of at least €1.5 billion in five years' time.
Alpaslan Korkmaz, President of Prime Ministry Investment Support and Promotion Agency who has given account of the investment decision by Perfect Wind Turkey, has stated that they consider this project as an important step taken in Turkey towards renewable energy generation taking the fact into account the fact that the wind energy potential in Turkey has been calculated to be approximately 10,000 megawatts. Korkmaz said, "The Agency has played an effective role in the actualization process of the project. I believe that this project will serve as an example for our country in every respect in terms of the renewable energy investments."
Market survey shows strong demand for Nabucco capacity
A recent survey has shown that potential shippers have reserved over 100 percent of the capacity of the Nabucco project, a pipeline project to carry Caspian natural gas to European markets via Turkey starting in 2013. In preparation for the open season process, Nabucco Gas Pipeline International GmbH conducted a market survey among potential shippers on a non-binding basis last month. The survey results have shown that there was strong demand for the transport of natural gas from various gas sources in Central Asia and the Middle East.
In a written statement, Reinhard Mitschek, the managing director of Nabucco Gas Pipeline International, stated that the result of the survey was a strong positive signal from the European gas market and potential shippers to Nabucco.
Dogan of Turkey will join Bruce Power in nuclear plant bid
Dogan Sirketler Grubu Holding AS, which owns Turkey's biggest media group, will bid for the nation's first nuclear power plant with three partners including Bruce Power LP of Canada. Dogan signed a partnership agreement yesterday with Bruce Power, Anadolu Endustri Holding A.S. and Unit Investment NV, the Istanbul- based company said in a filing to the city's stock exchange. Bids for the nuclear license must be submitted by Sept. 24.
Turkey to auction geothermal power sites
Turkey will soon begin auctions for 65 sites where underground heat can be tapped to generate power or provide warm water for use by the agricultural and tourism industries, Energy Minister Hilmi Guler said. The country will invite bids in late September or early October for six areas in southwestern Turkey, where geothermal power generation could reach a total of 800 million kilowatt/hours a year, Guler told reporters in Ankara.
The sales are among efforts to cut Turkey's dependence on foreign energy sources and encourage private-sector investment in the power industry, the minister said. A second wave of auctions will offer sites where hot springs or wells can be used to heat greenhouses, homes or spa hotels, Guler declared.
Turkey plans to finalize the Iranian energy agreements in one month
Turkey hopes to finalize the planned energy deals with Iran within a month after the sides failed to agree on the deals during Iranian President Mahmoud Ahmadinejad's visit last week. Turkey's Energy Minister Hilmi Guler emphasized that the technical works on the planned agreements are underway. "We will go to Iran in two weeks and would likely be accompanied by Turkish Foreign Minister Ali Babacan. We will continue our efforts to finalize the works within a month," Guler told reporters at a press conference.
Turkey and Iran failed to sign deals on a multi-billion dollar-investment in energy. Turkey and Iran agreed in May to build a new gas pipeline to ensure a reliable supply to Turkey, and the $3.5 billion agreement was expected to be finalized during Ahmadinejad's visit. Guler also said Turkey had concluded technical studies on natural gas production from Iran's huge South Pars gas field and sent them to Tehran, which would give its response on Aug. 21.
Turkey and Iran signed a memorandum of understanding (MoU) for the Turkish Petroleum Corporation (TPAO) to produce 20 billion cubic meters of natural gas in three phases in Iran's South Pars gas field last year. The Turkish private sector will build three power stations, which will use natural gas to generate 6,000 megawatts of energy in Iran, according to the signed MoU. The preliminary understanding on the development of the South Pars gas field also includes the transit of Iranian natural gas to Europe via Turkey, as well as the transit of gas from Turkmenistan to Turkey via Iran.
Lukoil gets Turkish regulatory approval for Akpet purchase
OAO Lukoil, Russia's largest non-state oil producer, got Turkish regulatory approval for its purchase of Akpet, the operator of 693 filling stations in Turkey. The transaction complies with Turkish antitrust laws, the regulator in Ankara said on its web site. Lukoil agreed to buy Akpet on July 28 as it seeks to use rising oil revenue to expand in the Black Sea and Mediterranean regions. The purchase, valued at more than $500 million, will probably be completed in the third quarter, spokesman Dmitry Dolgov said on July 28.
Ahmadinejad says hopes for Turkey energy deals soon
Iranian President Mahmoud Ahmadinejad said on Friday he hoped his country and Turkey would soon sign energy deals opposed by Washington, which is trying to pressure Tehran into halting its nuclear program.
The two Muslim neighbors failed to conclude expected energy accords during Ahmadinejad's two-day trip to Turkey, a NATO member with strong ties to the United States and Israel. Ankara has come under fire for inviting the Iranian leader.
Ahmadinejad has lobbied hard to visit Turkey since coming to power in 2005 as Iran seeks support amid international demands for a suspension of his country's nuclear enrichment program (the subject of ongoing talks between Iran and Western powers).
GDF wins tender for Turkey's Izgaz
Gaz de France submitted on Thursday a winning bid of $232 million in the tender for the privatisation of Turkey's Izmit Gas Distribution company (Izgaz). Under the tender, the whole of the gas distribution firm in northwestern Turkey will be sold off in a block sale. "GDF Suez will own 90 percent of Izgaz capital at the end of the deal," GDF said in a statement confirming that it had won the tender. In the open auction session broadcast live by CNBC-e, local Zorlu Enerji withdrew from the tender.
Energy regulator EPDK and the competition board must approve the tender before the distribution network is taken over by the private sector. Izgaz has $317 million in debt, and the winning bidder will also take on that debt. Gaz de France is one of a few foreign firms that have competed in Turkey's privatization tenders this year, stalling somewhat due to a global credit crunch and domestic political uncertainties.
Turkey ranks 4th among the most inexpensive countries concerning industrial energy consumption
According to the energy price index data produced by the International Energy Agency (IEA) for the second quarter of this year, Turkey ranks 10th among the OECD countries regarding the most inexpensive residential energy usage and 4th regarding the industrial energy usage. Due to the recent rises in the prices, Turkey has fallen back 2 steps in the inexpensiveness ranking of housing and industry prices compared to 2007.
Denmark eyes energy sector in Turkey
Turkey is looking for alternative energy sources to meet its increasing energy demand, thus there is great potential for cooperation between Turkey and Denmark, said Keld Mosgaard Christensen, the Danish consul general in Istanbul, in an interview last week with the Turkish Daily News.
The Turkish energy market is booming and Danish firms are increasingly aware of this fact, according to Christensen. The interest of the firms has lately been concentrated on the wind energy sector. Turkey has enormous wind potential and within a matter of years this will develop into a very significant market. With a 23% market share in 2007, the Danish firm Vestas, which claims to be the world leader in modern energy, opened an office last year in Istanbul. Numerous Danish firms come to Turkey on fact finding missions, with the aim of trying to seize investment opportunities. Although there is room for improvement, the Turkish government's enactment of new laws and regulations have created a more investment friendly environment, according to Danish officials.
Turkey offers Japan to cooperate for Iraq's energy
"Turkish Petroleum Corporation and other Turkish oil companies could collaborate with Japanese firms as consortiums to develop oil production fields and open new fields," the AA quoted Tuzmen as saying following his meeting with a group of Japanese businessmen and Japan's Liberal Party lawmakers. Tuzmen said giant projects to rehabilitate and reconstruct Iraq's oil refineries would start in the near future and the companies should join forces in order to have influence in the Iraqi energy market.
Turkey promises action to meet EU energy efficiency standards
The government has placed energy efficiency on its legislative agenda as a part of Turkey's drive to integrate into the European Union. A new project seeks to provide efficient use of energy, especially in heating insulation and prevent the inefficient use in white goods and other electric-powered household appliances.
Following a rescheduling, with a target date of 2013, the government is expected to officially introduce the National Programme Draft of 2008 this month, which outlines Turkey's roadmap to achieving EU membership. Among other things, this draft notes that a significant lack of investing took place beginning in the 2001 transition to a more open energy sector, and medium term reduced supplies of electricity are anticipated. Authorities note that energy measures required as part of the EU accession process seeks to prevent supply shortfalls in electricity in the medium term, while maintaining adequate energy supplies in the long term.
Turkey's Energy Minister in Denmark for wind turbine projects
Turkey's energy minister has invited Danish businessmen to invest in construction of wind turbine in Turkey. Energy & Natural Resources Minister Hilmi Guler, who is currently in Denmark as the official guest of Danish Climate & Energy Minister Connie Hedegaard, met officials from the Danish Energy Agency (DEA) and the Danish Confederation of Industry. He also visited some power stations and wind energy areas.
Industrialists to benefit from nanotech lubricants produced by a Turkish company
The NNT Nanotechnology Boron Company of Turkey has been producing "Borpower", the first nanotech lubricant in the world. In an interview, NNT Nanotechnology Boron Products Corp Director General Mehmet Can Arvas said Bor Power products, which could be used for closed-cycle engines for 15-20 years and which remarkably decreased energy expenditures, attracted a great attention of the world.
Arvas said Bor Power GBX lubricants which have been used in the automotive sector would also be useful for the industrialists. "Borpower products have been exported to several developed countries. We are continuing to show the power of Turkish boron to the world. This extraordinary product will provide remarkable contributions to Turkish industrialists," he stated.
American Superconductor gets Turkish contract
American Superconductor said it had licensed a wind turbine design to Turkish manufacturer Model Enerji Ltd. Model Enerji plans to begin mass production of the 1.65 MW turbine at the end of 2009. In addition to an upfront license fee, Devens-based AMSC will receive a royalty payment for the first 425 turbines. It didn't disclose the value of the contract. In premarket trading Wednesday, AMSC shares were up 38 cents, or 1.2 percent, at $31.31.
Enerjisa and Verbund get 1 billion Euro financing
Enerjisa, a joint subsidiary of Turkey's Sabanci Holding and Austrian Elektrizitätswirtschafts-Aktiengesellschaft, or Verbund in short, signed a 1 billion Euro financing package for the first phase of the company's investment program. “This is a rare and compelling international emerging market growth play,” Matthew McEachran, an analyst at Kaupthing in London said in a research note. He advises buying the stock, saying its valuation ‘ignores the true value of the international’.
Energy company AREVA T&D to invest $105 mln in Turkey
AREVA, one of the world's leading energy transmission and distribution companies, has decided to spend $105 million to expand their operations in Turkey by constructing a new factory that will create employment for an additional 600 people.
Speaking to Today's Zaman, Investment Support and Promotion Agency of Turkey President Alpaslan Korkmaz said AREVA has steered itself toward Turkey because his agency provides them with free land for their investments. Korkmaz noted that Turkey was competing with Eastern European countries to draw AREVA's money in, but that Turkey was winning this race with the government's offers of free land and the quality of its engineers. AREVA currently employs 1,500 workers in Turkey.
The company will produce energy transmission transformers spending USD 50mn initially. In the second phase, the company will invest a further USD 55mn, the daily Milliyet reports. Vice-chairman of AREVA, Ghislain Lescuyer, tells Milliyet that the production in new facilities will mainly meet local equipments demand however will also target neighboring markets such as Russia, Asia, and Ukraine. French AREVA has already expressed its intention to construct the first nuclear power plant in Turkey.
Iran, Turkey to hold South Pars gas field talks
Iran will hold talks with Turkey this month for the development of three phases of its South Pars gas field, Iranian publication Sarmayeh reported, citing an industry official. Iran plans “to cede the development of the phases 22 to 24 of the South Pars field to Turkey,” the Tehran-based newspaper said, citing Seifollah Jashnsaz, managing director of National Iranian Oil Co.
Turkish Petroleum Corporation eyes Mediterranean
The Turkish Petroleum Corporation (TPAO), which produces most of Turkey's crude oil output and operates more than 45 oilfields, recently announced that it will expand its exploration in the eastern Mediterranean Sea to include deepwater areas west of the island of Cyprus, reported Thaindian News, a news portal for Indians in Thailand.
Israel's largest petroleum refiner may invest in Turkey
Oil Refineries Ltd., Israel's biggest petroleum refiner, plans to make acquisitions in Turkey and elsewhere after its sale by the government last year opens up opportunities, Chief Executive Officer Yashar Ben Mordechai said. Oil Refineries is seeking a small refinery or a stake in a larger one, and is looking for purchases in the retail gasoline business in Cyprus, Italy or Turkey, Ben Mordechai said in an interview in Tel Aviv.
Turkey has world’s 7th largest potential in geothermal energy
Turkey’s Energy Minister said Turkey would look to develop further geothermal energy resources. Turkish Energy Minister Hilmi Guler said the government was looking to save 315 million euro between now and 2013 with an annual production of 4.4 billion kw/hr through geothermal power plants.
During a visit to Iceland, Guler said that in terms of geothermal energy potential, Turkey ranked 7th in the world and 1st in Europe with a potential of 31,500 MWs. However, currently it was was only producing a total of 30 MWs at three geothermal power plants. Guler said they wanted to increase this to a total of 550 MWs by 2013.
EU-Turkey agree on Arab gas pipeline cooperation
The EU, Turkey, Iraq and Mashreq countries (Egypt, Jordan, Lebanon and Syria) reached a consensus to connect Arabian natural gas pipeline to Turkey, Iraq and the EU through Nabucco and other pipelines at a commission meeting in Brussels. The consensus aims to develop regional cooperation in the natural gas sector through the Euro-Arab Mashreq gas market center and extending its participation to Iraq and Turkey said the statement.
The Arab Gas Pipeline currently runs from Egypt through Jordan to Syria and has a capacity of 10 billion cubic meters per year. The pipeline, which will be interconnected with Turkey and Iraq by 2009, will provide a new transport route for gas resources from the Mashreq region to the EU. It is expected that, in the future, the pipeline will be connected with the Nabucco project.
Japan's Hochu among possible bidders for Turkish nuclear plant
Japan's Hochu is among four foreign companies to have obtained tender documents for Turkey's first nuclear power plant, Aksam newspaper said. Other potential bidders include France's Vinci SA, the world's biggest construction company, Belgium's Suez-Tractabel SA and Canada's AECL, Aksam reported. The deadline for bidding is on Sept. 24.
Two more state-owned electricity grids for sale
The state-owned Meram and Aras electricity distribution corporations are to be privatized, with its shares will be sold as a block, Turkey's Privatization Administration (OIB) announced yesterday in the Official Gazette.
The eventual buyer must provide $10 million as collateral to purchase the Meram Electricity Distribution Corp. shares. The corporation serves Kirsehir, Nevsehir, Nigde, Aksaray, Konya and Karaman. For the shares of the Aras Electricity Distribution Corp., which serves Erzurum, Agri, Ardahan, Bayburt, Erzincan, Igdir and Kars, the figure is $5 million.
Potential buyers will have to apply to the OIB by 4 p.m. on May 26 and present their offers by July 15. Related materials and documents listing the contract terms for the corporations' sales will be available from May 5 at the OIB.
Energy Minister says Turkey controls world boron market
Turkey's energy minister said on Wednesday that Turkey currently controlled the world's boron market. Attending a meeting on "The Future of Boron and Turkey" at Ankara's Cankaya University, Turkish Energy and Natural Resources Minister Hilmi Guler said remarkable studies were being carried out and more than 2,000 products were produced in Turkey using the "boron" chemical.
"We can say that Turkey is now controlling the world's boron market," Guler said. He also said Turkish experts carried out studies on "sodium-boron hydride" which was one of the most important hydrogen carriers of the future. Guler said Turkey produced cement using boron chemicals as well. He said 4,000 tons of cement was produced using such material currently and the product would be commercialized soon.
Boron, a semi-metallic element, exhibits some properties of metal as well as of non-metal. Turkey has almost 72 percent of the world's boron potential and boron reserves. The importance of boron --widely used in industries ranging from detergent industry to glass industry-- will increase as hydrogen fuelled motor vehicles are introduced.
Verbund joint venture backs Turkey gas plant plan
Reuters - Austria's top utility Verbund said on Thursday its Turkish Enerjisa joint venture had been given the green light to build a 920 megawatt gas-fired power plant in northwest Turkey. Verbund said in a statement the 500 million euro ($781 million) project, which will be built in a joint venture with Turkey's Sabanci Holding should go online by autumn 2010.
Reuters - Turkey's Global Yatirim Holding says ABN Amro Infrastructure Capital Management has agreed to join its consortium to purchase Ankara's gas grid. ABN will take a 22.23 percent stake. Global continues talks for a new foreign strategic partner.
Favourable investment climate in energy sector
Hasan Koktas, President of Energy Market Regulatory Authority, has stated that they will assume more responsibility in order to remove the hesitations in the sector and added, "We will speed up private sector investments.”
Turkey sets deadline for bids to build first nuclear power station
Reuters - Turkey has set a deadline of Sept. 24 for bids in a tender to build the country's first nuclear power station, a statement in the Official Gazette said on Monday. The power station will be built at Akkuyu near Mersin on the country's Mediterranean coast, the Official Gazette said. The plant will have a capacity of 4,000 megawatts, plus or minus 25 percent.
The project is one of the several ways in which the government plans to boost energy production to keep pace with rapidly growing demand against a background of strong economic growth. Turkey has conducted legal work on building three nuclear power plants with a total capacity of 5,000 MW.
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