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October 25, 2005 No.1081

MHI Receives Order for Blast-Furnace-Gas Fired Gas Turbine
For GTCC Power Plant of Lianyuan Iron & Steel Group in China
Tokyo, October 25, 2005 - Mitsubishi Heavy Industries, Ltd. (MHI) has received an order for a gas turbine to be used in a blast-furnace-gas (BFG) fired gas turbine combined-cycle (GTCC) power generation plant at Lianyuan Iron & Steel Group Co., Ltd. (Lianyuan Steel) in China. The order marks the fifth of its kind from China and follows on the heels of BFG GTCC plant orders from Maanshan Iron & Steel Company in January and Handan Iron & Steel Company in March.

MHI's BFG-fired gas turbine (M251S)
  MHI's BFG-fired gas turbine (M251S)
   
Lianyuan Steel, a state-owned enterprise located in Loudi city in central Hunan province, has opted to construct a BFG GTCC power plant at its existing steelworks in the city, with the aim of effectively utilizing exhaust gas from its blast furnaces to meet part of its own electricity needs. The new power plant is scheduled to go on-stream in May 2007.

The order calls for MHI to provide a M251S gas turbine that will be used in combination with a steam turbine to generate 50 MW (megawatts) of electricity on a combined cycle basis. MHI's Takasago Machinery Works will be responsible for its design and manufacture, and assembly of auxiliary equipment will be undertaken in cooperation with Hangzhou Steam Turbine Co., Ltd. Other components including the steam turbine and heat recovery steam generator (HRSG) will be procured locally by Lianyuan Steel. Mitsubishi Corporation is to handle the trade particulars.

At ironworks using blast furnaces, BFG containing carbon oxide (CO) and hydrogen (H2) is produced as a by-product during iron-ore reduction. Many ironworks utilize the gas as fuel to generate electricity, as a means of making effective use of energy resources. In China, ironworks have traditionally adopted conventional power generation systems that operate by boilers and steam turbines. Recently, however, there is a growing trend toward more effective GTCC power generation relying on BFG-fired gas turbines.

Because BFG has a lower calorie rating than natural gas, only about one-tenth in BTU (British thermal unit) parameters - stable combustion of BFG-fired gas turbines requires sophisticated technology. MHI pioneered the development of BFG GTCC technology in the 1980s and has already delivered many systems to iron and steel manufacturers at home and abroad, enjoying nearly a 60% share of world's BFG gas turbine market. This technological lead and track record contributed heavily to MHI's winning of the new order from Lianyuan Steel.

As China's demand for steel continues to expand, local blast-furnace steelmakers are consistently operating at full capacity. On the strength of this robust momentum and the string of orders for blast-furnace GTCC power generation systems it has already received, MHI intends to further strengthen its GTCC plant marketing activities to China's iron and steel manufacturers.

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About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,590 billion yen in fiscal 2004 (year ended March 31, 2005). MHI's diverse lineup of products and services encompasses shipbuilding, steel structures, power plants, chemical plants, steel plants, environmental equipment, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.
For more information, please visit the MHI website (http://www.mhi.co.jp).


PRESS CONTACT:
Hideo Ikuno: h.ikuno@daiya-pr.co.jp
Tel: +813-6716-5277, Fax: +813-6716-5929
Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.)
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