MHI, together with Daewoo Engineering & Construction Co., Ltd. (Daewoo E&C) and POSCO Engineering & Construction Co., Ltd. (POSCO E&C), has received a full turn-key order from Korea District Heating Corporation (KDHC), a state-owned corporation, for the construction of a cogeneration plant in Hwaseong, South Korea. The cogeneration plant, to supply power and residential district heating, is scheduled for completion in November 2007.

The 525 MW cogeneration plant will be constructed in the city of Hwaseong, in Kyeonggi-Do, approximately 40 kilometers south of Seoul. The principal elements of the LNG-fired gas turbine combined-cycle (GTCC) power generation plant will be two M501F gas turbines, one steam turbine, a heat recovery steam generator (HRSG) and a generator. MHI will be responsible for the design and manufacture of the gas and steam turbines, the facility's core equipment. Mitsubishi Electric Corporation will build the generator. Daewoo E&C and POSCO E&C will take charge of construction and installation, plus procurement of the HRSG.

The electricity produced at the plant will be sold to Korea Electric Power Corporation. The exhaust heat from the gas turbines will be used not only to produce steam for driving the steam turbine (via the HRSG), but also for heating and hot water production to service approximately 51,000 households in Hwaseong and a new residential area nearby.

MHI has already delivered numerous M501F gas and steam turbines in Japan and abroad. One of the requirements key to the order from KDHC is the need for a stable supply of electricity and residential district heating. MHI believes KDHC's high evaluation of the technological and economical advantages of MHI's high-efficiency turbines contributed to this award. These advantages are clearly proven by our long and distinguished installation record.

LNG-fired GTCC power generation offers clear advantages over conventional power production methods in terms of generation efficiency and environmental friendliness. The order from KDHC also calls for the use of exhaust heat for heating, which will enable the achievement of combined heat and power efficiency in excess of 80%. Today, a number of GTCC cogeneration plant installations are planned in Korea in recognition of their superiority in terms of environmental compatibility, energy conservation, reduced CO2 emissions and economical performance. On the strength of the latest order, MHI aims to further expand its GTCC power plant marketing activities in Korea.