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MHI Receives First Russian Order for M701F Gas Turbine
Core Component to Support High-efficiency GTCC Power Generation

No.1237
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Tokyo, May 20, 2008 - Mitsubishi Heavy Industries, Ltd. (MHI) has received an order from the E4 Group, a plant EPC (engineering, procurement and construction) company in Russia, for an M701F gas turbine to be used at a new power generation plant of OAO UGK TGK-8 (TGK-8), a regional power producer. TGK-8 plans to build a 400 MW (megawatt) natural gas-fired gas turbine combined-cycle (GTCC) power generation plant in the Krasnodar region on the Black Sea coast. The gas turbine on order will be the key component of the GTCC plant and is expected to contribute significantly to alleviating the tight local electricity situation. This is the first gas turbine order from Russia placed to MHI.

The new GTCC plant will consist of a 701F gas turbine, a steam turbine, a heat recovery boiler and a generator. MHI will manufacture and supply the gas turbine and support installation and testing of the gas turbine and its peripheral equipment. Mitsubishi Electric Corporation will manufacture the generator. Mitsubishi Corporation is handling the trade particulars.

TGK-8 is an affiliate of OAO LUKOIL, Russia's largest oil company, and operates in the Black Sea and Caspian Sea coast region in the nation’s southwest. The E4 Group, a leading EPC (EPCM) contracting company, was established in 2006 integrating engineering leaders in the country and comprises 13 holding companies. The power plant construction project on order aims to provide a solution for the tight local electricity supply situation, especially in the runup to the 2014 Winter Olympics to be held at the Black Sea resort of Sochi, which are expected to increase demand for power in the region.

Russia, benefiting from surging oil prices, has sustained solid economic expansion through the past nine straight years. In tandem with economic growth, however, the country is facing severe electricity shortages, mainly due to stagnation in power plant construction for more than 15 years. To ease the problem, plans at the national level call for the addition of 50,000 to 60,000 MW power generation capacity during the next five years, including renewal of aged facilities.

The M701F is one of the best-matched gas turbines for GTCC systems, enabling temperatures at the turbine inlet of up to 1,400°C (2,552°F). The F-series also reduces emissions of NOx (nitrogen oxide) by adopting a low-NOx combustor. MHI believes that the customer’s high evaluation of the turbine’s performance and track record contributed largely to the award of the latest order.

With GTCC type power generation, gas and steam turbines are used in combination to generate electricity in two stages, utilizing high-temperature exhaust gas from the gas turbine. This configuration enables GTCC power plants to achieve approximately 20% higher thermal efficiency than non-GTCC plants such as conventional boiler steam turbine plants. As a result, GTCC power plants make a substantial contribution to energy conservation and are more environmentally friendly. Given today’s demand for higher power generation efficiency to reduce fuel in order to counter soaring gas prices, going forward MHI intends to aggressively market its gas turbines in response to the market's needs.