| Tokyo, October 16, 2006 - Mitsubishi Heavy Industries, Ltd. (MHI) has received an order from Dongfang Steam Turbine Works (DFSTW), one of China's top three turbine manufacturers (headquarters: Deyang, Sichuan province), for supply of major components for four units of M701F gas turbines. The gas turbines to use the MHI-made components will serve as the core equipment of the Fujian Putian power plant, a 1,600 megawatt (400 MW x 4) natural gas-fired gas turbine combined-cycle (GTCC) power plant to be constructed by CNOOC Fujian Gas Power Limited. The plant's first power generation unit is scheduled to go on-stream in June 2008. |
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MHI's F-type gas turbine |
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The GTCC power plant will be constructed in Putian district, approximately 150 kilometers northeast of Xiamen. In 1980 Xiamen was designated as a Special Economic Zone, and many foreign companies have invested in the area. The new power plant will respond to the resulting robust electricity demand.
MHI will manufacture and supply the gas turbine blades, rotors and control systems - key components of M701F gas turbines. Combustors will be supplied by Mitsubishi Heavy Industries Dongfang Gas Turbine (Guangzhou) Co., Ltd., which was jointly established by MHI and DFSTW in 2005. DFSTW will provide steam turbines. Mitsubishi Corporation will handle the trade particulars.
Coal-fired power generation has long been the mainstream in China, but today the Chinese government is working to increase the ratio of gas-fired power generation in order to diversify energy sources. The latest order follows two bulk orders for GTCC power plants placed by China to companies worldwide, including MHI, since 2003. As China intends to enhance domestic companies' independent manufacturing capability, for this project, MHI will supply components as a subcontractor to DFSTW, rather than under a conventional consortium contract scheme.
With GTCC type power generation, gas and steam turbines are used in combination to generate electricity in two stages, utilizing high-temperature exhaust gas from the gas turbine. This configuration enables GTCC power plants to achieve about 20% higher thermal efficiency than non-GTCC plants such as conventional boiler steam turbine plants. As GTCC power plants contribute greatly to energy conservation and are more environmentally friendly, demand for GTCC power plants is expected to expand further. MHI believes that the latest order was awarded to the company due to end user's high evaluation of DFSTW's market competitiveness and MHI's technological expertise and past delivery record in gas turbines.
China's power generation capacity has been marking double-digit growth in tandem with sharp expansion of the nation's electricity demand, and along with that growth the market for gas turbines is also expanding rapidly. Going forward, MHI intends to conduct aggressive marketing activities in cooperation with local partners.
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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 2,792 billion yen in fiscal 2005 (year ended March 31, 2006). MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, 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.) |
