The FGD system on order will be used to treat flue gas from three existing coal-fired boilers at the Gorgas plant: units No. 8, 9 and 10, with a total generation capacity of 1,020 MW (megawatts). The plant is located some 50 kilometers northwest of Birmingham, Alabama's largest city. The three boilers emit a combined total of some 4.4 million Nm³ (normal cubic meters) of flue gas per hour. MHI's FGD system will enable greater than 98% SO2 (sulfur dioxide) desulfurization efficiency, made possible by the company's proprietary Double Contact Flow Scrubber (DCFS) technology for the absorption tower, the core component of the system. The FGD system not only removes SO2 but also performs advanced treatment of soot, mercury and sulfur trioxide. These features are expected to enable the FGD system to make significant contributions to environmental preservation at other SO group power plants as well.

In the DCFS system, limewater, a liquid absorbent slurry, is evenly distributed throughout the absorber tower from spray nozzles installed at the bottom, in contrast to conventional systems in which slurry is sprayed from the top. As a result the slurry contacts with the flue gas twice, first when sprayed upward and second upon its descent.

MHI, as owner of proprietary rights to the basic and process technologies of the FGD system, will be in charge of the overall FGD system design, processing technology, supply of major components for the absorption tower, and technical guidance for construction work and test operation. Advatech will undertake detailed design work, material procurement and supervision of the entire project.

Southern Company is one of the six largest electricity providers in the U.S. It owns and/or operates 79 generating stations with a total generating capacity near 39,000 MW. The company also owns five regulated retail electric utilities - Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric - and supplies energy in Georgia, Alabama, southeastern Mississippi and the panhandle region of Florida. Over 70% of the electricity generated by SO relies on coal.

Coal is used to produce more than 50% of all electricity in the U.S., but only about a quarter of the country's coal-fired power plants currently have FGD installations. In 2002, however, the federal government announced stringent emission control regulations obliging power companies to reduce their emissions of sulfur oxides and nitrogen oxides from power generation facilities significantly by 2012. Due to this initiative, demand for FGD systems is increasing sharply both for new and existing coal-fired plants. In response to the tightened regulations, SO has launched a large-scale environmental preservation program. Installation of the FGD system at the Gorgas plant marks the first step in its execution.

Advatech, a 200-employee operation, was established in 2002 in anticipation of the surge in FGD system demand in response to the tighter emissions controls. The company was jointly founded by URS Corporation, a major U.S. engineering firm headquartered in San Francisco, and Mitsubishi Heavy Industries America, Inc. (MHIA), a local MHI subsidiary. MHIA has a 40% interest in the joint venture. URS conducts a wide range of operations through 300 domestic and 30 international business bases, mainly in the fields of urban infrastructure and the environment, including public works such as bridges and transportation systems. URS also enjoys strong relationships with a range of local electricity providers.

To date, MHI has delivered more than 160 FGD systems worldwide. Now, on the heels of consecutive orders from two of America's leading electricity providers, through Advatech. MHI intends to boost its FGD marketing activities within the expanding U.S. market, including increased assignment of engineering and marketing staff to the joint venture.