MHI has received an order for the construction of a 1,400 MW natural gas-fired gas turbine combined-cycle (GTCC) power generation plant from Ratchaburi Power Company Limited (RPCL), a newly established independent power producer (IPP) in Thailand. The new plant is to incorporate two 700 MW power generation units. The electricity generated will be sold to the Electricity Generating Authority of Thailand (EGAT) for a period of 25 years. Plans call for the No. 1 unit and No.2 unit to start operation in March 2008 and June 2008 respectively.

The plant will be constructed roughly 140 kilometers west of Bangkok, in Ratchaburi province. The two power generation units will collectively encompass four M701F gas turbines, two steam turbines, four heat recovery steam generators (HRSG) and six generators. MHI will be responsible for the design and manufacture of the gas and steam turbines, the facility's core equipment, as well as the HRSGs. Mitsubishi Electric Corporation will build the generators, and Sino-Thai Engineering & Construction Public Company Limited (STECON) will take charge of civil engineering work and installation.

RPCL is a special-purpose company (SPC) created specifically for this IPP Project, jointly established with Thai and foreign capital on a 50-50 equity basis. Hongkong Electric Holdings Limited (HEH) owns a 25% stake, while Japan's Chubu Electric Power Co., Inc. and Toyota Tsusho Corporation, a trading company, hold 15% and 10% stakes, respectively. The remaining 50% stake is owned by three Thai companies: Ratchaburi Electricity Generating Holding Public Company Limited (25%), a leading power generation investment company, PTT Public Company Limited (15%), a provider of both oil and gas, and Saha-Union Public Company Limited (10%), the central body of one of the country's leading business groups.

Impact from a domestic demand expansion policy and revitalized consumer spending enabled the Thai economy to record 6.9% growth in 2003, the highest rate since the economic crisis of the late 1990's. Equally high growth was projected for 2004. Electricity and energy demand is therefore expected to keep expanding in coming years. This project aims to respond to those needs. Funding from Japan Bank for International Cooperation (JBIC) is under consideration to partially finance the project cost.

With GTCC power generation, gas and steam turbines are used in combination to generate electricity in two stages, using high-temperature exhaust gas from the gas turbine. This power plant configuration enables GTCC power plants to achieve higher thermal efficiency than non-GTCC plants such as conventional boiler-steam turbine plants. Higher efficiency means that GTCC plants enable reduced fuel consumption relative to electricity output. Therefore they emit less CO2, making them more environmentally friendly.

MHI has already delivered numerous GTCC power plants, winning worldwide acclaim for its technology and operational reliability. Going forward, the company will further strengthen its marketing activities in the Southeast Asian market, where demand for electricity is particularly robust.