MHI has received an order for a blast-furnace-gas (BFG) fired gas turbine combined-cycle (GTCC) power generation plant for Maanshan Iron & Steel Company Ltd. of China. The iron and steel producer is currently expanding its plant facilities, and has opted to construct a GTCC plant in order to effectively use exhaust gas from its new blast furnaces to meet part of its own electricity needs. The new plant is scheduled to go onstream in April 2007.

The new 150 MW GTCC plant will consist of an M701S (DA) gas turbine, a steam turbine, a heat recovery steam generator (HRSG) and a generator. MHI will manufacture the gas and steam turbines at Takasago Machinery Works. Mitsubishi Electric Corporation will build the generator. The customer will procure the HRSG while the Mitsubishi Corporation will handle the trade particulars.

Maanshan Iron & Steel, located in Maanshan city, Anhui province, is one of China's eight major iron and steel manufacturers. The company produces wire rods, mold steel, medium and heavy plates, and wide-flange beams. It decided to adopt a GTCC plant out of a strong desire to use BFG for power generation and also to reduce CO2 emissions. MHI has cooperated with the company from the initial planning stage.

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's success in winning the new order from Maanshan Iron & Steel.

With GTCC type power generation, gas and steam turbines are used in combination to generate electricity in two stages. In the first stage, electricity is generated by the gas turbine, while in the second stage it is generated when high-temperature steam produced by high temperature exhaust from the gas turbine drives the steam turbine. This dual configuration enables GTCC power plants to achieve higher thermal efficiency than non-GTCC plants. Higher efficiency means that GTCC plants require less fuel relative to electricity output and also emit less CO2, thus making them more environmentally friendly.