In the rapidly evolving energy landscape, the gas power sector is experiencing a significant shift, marked by both immediate supply challenges and long-term decarbonization efforts. Mitsubishi Power’s Vice President of Business Development for Emerging Technologies, Peter Sawicki, provides a candid assessment of the current market dynamics and the company’s strategic responses.
The gas turbine market is currently grappling with substantial supply constraints, reminiscent of the early 2000s. Sawicki confirms that reservation fees have made a comeback, with customers placing deposits for units that won’t be delivered for several years. This scenario poses a considerable challenge, particularly for power developers who face development risks and uncertain timelines. “We’re taking deposits now for a unit that probably will be delivered several years in the future,” Sawicki notes, highlighting the market’s tension between immediate power needs and future delivery timelines.
The surge in demand from hyperscalers and colocation data center developers is exacerbating these procurement constraints. These entities prioritize utility interconnects for their reliability and cost-effectiveness, driving up demand for gas turbines. Sawicki acknowledges the robust demand and the need for alternative solutions. “The market, the way it is, is obviously very robust demand, and we can expect to continue to see that demand,” he states, emphasizing the urgency to address power delivery needs.
Mitsubishi Power is exploring various strategies to mitigate these challenges. Aeroderivative turbines, known for their quick deployment and installation, are being positioned as a stopgap solution. These units can be trailer-mounted and installed rapidly, reducing labor risks and providing a temporary power supply. Sawicki envisions a future where these turbines are integrated with battery energy storage solutions to enhance reliability.
Beyond immediate supply issues, Mitsubishi Power is deeply invested in decarbonization technologies. The company has made significant strides in hydrogen and ammonia combustion testing. Sawicki reveals that the H-25 turbine has successfully undergone 100% hydrogen combustion testing, with plans to offer quoting capabilities by the end of the year. Similarly, ammonia combustion testing has shown promising results, with selective catalytic reduction (SCR) control managing NOx production levels.
The company’s long-term strategy is firmly rooted in decarbonization, despite the current focus on power delivery. Sawicki emphasizes the importance of hydrogen and ammonia combustion, as well as carbon capture solutions, in achieving global decarbonization goals. “Directionally, we’re still very bullish on decarbonization,” he asserts, underscoring the company’s commitment to sustainable energy solutions.
Carbon capture technology is another critical area of focus. Mitsubishi Power’s unique position, with in-house design capabilities for both gas turbines and carbon capture solutions, sets it apart in the market. Sawicki believes this integration will provide a seamless transition for customers, ensuring performance guarantees and project execution. “We feel pretty bullish on the idea that we can provide a natural gas combined cycle and a carbon capture solution in a fairly seamless way,” he states, highlighting the company’s competitive edge.
The modernization and services business is also a key area of focus. With a massive fleet of existing gas power plants, Mitsubishi Power is committed to continuous technological upgrades and enhancements. Sawicki mentions ongoing developments in blade coatings, firing temperature adjustments, and flexibility improvements to support renewable energy integration. “We’re always developing technology. We’re always enhancing,” he affirms, emphasizing the company’s dedication to innovation.
The interview with Sawicki offers a comprehensive view of the current and future challenges in the gas power sector. The return of reservation fees, the demand from hyperscalers, and the push for decarbonization are shaping the industry’s trajectory. Mitsubishi Power’s strategic responses, from aeroderivative turbines to hydrogen combustion and carbon capture, reflect a proactive approach to navigating these complexities. As the energy landscape continues to evolve, the insights from this interview will be crucial in understanding the sector’s development and the role of gas power in the transition to a sustainable future.
