MHI has received an order for two gas turbines to be used in a blast-furnace-gas (BFG) fired gas turbine combined-cycle (GTCC) power generation plant for Handan Iron & Steel Company, Ltd. in China. The order marks the fourth order of its kind from China and follows fast on the heels of a BFG GTCC plant order from Maanshan Iron & Steel Company received in January.

Handan Iron & Steel, a state-owned enterprise, has opted to construct a BFG GTCC power plant at its existing steelworks in Handan, Hebei province, with the aim of effectively using exhaust gas from its blast furnaces to meet part of its own electricity needs. The new power plant is scheduled to onstream in August 2006.

The order calls for MHI to provide two 251S gas turbines with a combined power output of 60 MW. MHI will be responsible for their design and manufacture, and will also carry out assembly in cooperation with Hangzhou Steam Turbine Co., Ltd. Mitsubishi Electric Corporation will build the generators. Other plant components such as steam turbines and heat recovery steam generators (HRSG) will be procured locally by Handan Iron & Steel. Mitsubishi Corporation will handle the trade particulars.

At ironworks which use blast furnaces, BFG containing carbon oxide (CO) and hydrogen (H2) is produced as a by-product during iron-ore reduction. In order to make effective use of energy resources, this gas can be used as fuel to generate electricity. Historically, most ironworks in China have used conventional power generation systems comprised of boilers and steam turbines. But recently, the shift towards GTCC systems based on BFG-fired gas turbines is gathering pace.

Because BFG has a calorie rating of around only 10% that of natural gas (expressed in BTU, or British thermal units), stable combustion for 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 both in Japan and overseas, including some that have been in operation for more than 100,000 hours. This technological expertise and proven track record were major factors in MHI success in winning the new order from Handan Iron & Steel.

As China's demand for steel continues to grow, local blast-furnace steelmakers are continually operating at full capacity. Last year, MHI received successive orders for blast-furnace GTCC power generation systems from Angang Group International Trade Corporation and Jiangsu Shagang Group Company, followed by the above order from Maanshan Iron & Steel in January this year. MHI intends to build on this robust momentum, and further strengthen its GTCC plant marketing activities targeting China's iron and steel manufacturers.