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  • [FOCUS]Machinery, Equipment & Infrastructure

Image:Energy & Environment

Providing optimal solutions toward the creation of improvement of social infrastructure in the energy and environmental areas

Energy & Environment

Energy & Environment provides optimal solutions in social infrastructure in the areas of energy—including thermal, nuclear, and renewable energies—and the environment, such as water and fl ue gas treatment, and chemical plants. MHI also combines its engineering, procurement, and construction (EPC) capabilities relating to the domain’s various businesses and products to provide optimal solutions.

SWOT Matrix

Image:SWOT Matrix

Basic Strategies

  • Elicit synergies from the business integration with Hitachi and the shift to a Business Domain Structure, maintain our quality orientation (customer standards), and expand the power systems business
  • In compliance with new regulatory standards, contribute to early restart of existing Japanese nuclear plants and accelerate overseas expansion of Japanese nuclear safety technology
  • Expand the EPC business, make a full-fledged entry into the environmental business (such as water and PM2.5 businesses), and promote business development in new areas, including distributed power, and power generation

photo:Atsushi Maekawa Domain CEO, Energy & Environment
By pursuing the MHI Group’s diverse product and operational strengths and synergies, we will strive to win out in global competition by responding to customer and market needs.
Atsushi Maekawa
Domain CEO, Energy & Environment

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Fiscal 2013 in Review

During fi scal 2013, MHI received orders for chemical plants in Russia and the United States, and orders for large-scale gas turbines totaled 18, up from eight in the previous fi scal year. Benefi ting from the rise in large overseas projects, centering on thermal power and chemical plants, orders received amounted to ¥1,339.2 billion, signifi cantly higher than in the previous fi scal year.

In addition to the integration of the thermal power generation businesses of MHI and Hitachi, Ltd., higher sales of thermal power and chemical plants helped push up consolidated net sales in this domain to ¥1,253.9 billion. Operating income was also up year on year, to ¥112.3 billion, due primarily to higher sales of gas turbine combined-cycle (GTCC) and chemical plants and the effects of yen depreciation.

Graph:Orders Received / Net Sales / Operating Income

Operating Environment

Energy demand continues to grow on a global scale; by 2035, demand is forecast to be 1.3 times the current level.* In thermal generation, given that the shale gas revolution is driving down natural gas prices, GTCC demand is expected to stay strong going forward. We expect coal-fired thermal power demand to remain robust, owing to demand to upgrade aging facilities and build new generating plants in emerging countries. At the same time, as CO2 emissions from power generation account for 41.7% of the global total,* pressure for global warming countermeasures is growing. Under these circumstances, we are seeing growing demand and expectations for nuclear power generation and renewable energy, as well as for thermal power generation that is highly efficient and curtails CO2 emissions.

The new construction of chemical plants is growing in North America, where shale gas development is pushing ahead, and in such gas-resource-rich areas as Russia and Africa.

* Source: CO2 Emissions from Fuel Combustion Highlights 2013, International Energy Agency

Initiatives for Growth over the Medium to Long Term

Maintaining a core quality orientation, by investing aggressively in growth fields and bolstering cost competitiveness we aim to boost orders by around 1.5 times and approximately double operating income. In the field of thermal power generation, at Mitsubishi Hitachi Power Systems, Ltd. (MHPS), which was established through the integration of businesses from Hitachi and MHI, we expect to accelerate the combination of technological capabilities. On the development front, we will hone our competitive edge by pursuing additional generation efficiencies, while taking advantage of our larger combined network to reinforce EPC and after-sales services. Through the new joint venture we have established with Vestas Wind Systems A/S, we will strive to develop the offshore wind turbine business on a global scale. As part of this business, MHI is promoting developments designed to reduce environmental impact by entering the water, distributed power source, and power generation businesses. As we continue to view nuclear power as a key source of generation, we will work to improve nuclear power safety and develop advanced technologies. Furthermore, we will maintain an ongoing focus on the chemical plant business, for which the market is expanding.

Key Projects
Announcement Delivery Project
June 2014 2017 MHI Receives Order for Large-Scale Polyethylene Plant Project in the United States
June 2014 2016 MHPS Signs Agreement with Daewoo Engineering & Construction Co., Ltd., of South Korea to Supply Core Components for GTCC Power Generation Plant
May 2014 2016 MHPS Receives Order for GTCC Power Generation Plant from Kyushu Electric Power Co. Inc.
April 2014 - Operations Get Under Way at MHI Vestas Offshore Wind A/S, New Joint-Venture Company Dedicated to Offshore Wind Turbine Business
March 2014 2016 MHI and Turkish Company Sign Partnership Agreement in Natural Gas Fired Power Generation Business
February 2014 - Mitsubishi Hitachi Power Systems Commences Operations
October 2013 - Broad Framework Reached with Government of Turkey on Commercial Agreement Relating to Nuclear Power Plant Project
October 2013 - Launch of Mitsubishi Heavy Industries Marine Machinery & Engine Co., Ltd.

Strategic Business Unit (SBU)

  • GTCC
  • Large Conventional Plant & Service
  • Industrial Conventional Plant & Service
  • Onshore Wind Turbine
  • Offshore Wind Turbine
  • Photovoltaic Power System
  • Marine Diesel Engine
  • Marine Machinery
  • Pump & Hydro Turbine
  • Power Generation Project Development
  • Nuclear Turbines
  • New Products
    • Desalination Plant
    • Geothermal Power Plant
    • SOFC
    • Lithium-ion Battery
  • Nuclear Power Plant (Domestic)
  • Nuclear Power Plant (Global)
  • Nuclear Fuel Cycle & Advanced Solutions
  • Chemical Plant
  • Environmental Plant
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