MHI has received an order for blast-furnace-gas (BFG) fired gas turbine combined-cycle (GTCC) power generation plant destined for a steel plant operated by Baotou Iron & Steel (Group) Co., Ltd. The power plant is slated to go on-stream in April 2008. MHI has received a succession of orders for blast-furnace GTCC power generation systems for China within a short time span since 2004, and the latest award brings the total number of BFG GTCC power plant order to MHI from China to six.

Baotou Iron & Steel opted to construct two 150MW BFG GTCC power plants (300MW in total) at its existing steelwork with the aim of effectively utilizing exhaust gas from blast furnaces to meet part of their electricity needs. MHI will supply two M701S (DA) gas turbines, two steam turbines and two generators.

Of the GTCC power plant components, gas and steam turbines will be manufactured by MHI and Mitsubishi Electric Corporation will build the generators. Mitsubishi Heavy Industries, (Shanghai) Co., Ltd., an MHI subsidiary in China, will procure peripheral equipment locally. In addition to component supply, MHI will also provide guidance and supervision for installation and test operation work. Mitsubishi Corporation will handle the trade particulars.

Baotou Iron & Steel, based in Inner Mongolia Autonomous Region, is a major steel manufacturer specializing in high value-added products such as seamless steel pipes. The company currently executing a plan to double its production by 2007 and has commenced operation of a new high-grade steel production plant in 2005.

China's steel manufacturing industry has been expanding its production every year, supported by robust growth of the domestic economy and abundant coal and limestone reserves. Production of raw steel in China in 2005 is estimated to have exceeded 300 million tons. There is a growing trend in the industry to introduce high-efficiency GTCC power plants that utilize BFG for fuel, as a means of enhancing generation efficiency and safeguarding the environment.

Because BFG has a lower calorie rating than natural gas, stable combustion of BFG-fired gas turbines requires sophisticated technology. MHI independently established its BFG GTCC power generation technology in the 1980s, including development of BFG dedicated combustors. Since then, the company has delivered numerous systems to iron and steel manufacturers at home and abroad, enjoying nearly a 70% share of the world's BFG gas turbine market. This technological lead and track record have been highly acclaimed by customers, and contributed heavily to MHI's winning of the new orders.

Riding on the wind of the latest order, going forward MHI intends to further strengthen its marketing activities for BFG GTCC plants that contribute to effective utilization of energy and reduction of environmental burdens.