Press Information

MHI Receives Consecutive Orders for 150 MW and 284 MW BFG-fired
GTCC Power Plants from Shougang Group, China, and POSCO Power, Korea

No.1242
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Tokyo, June 19, 2008 - Mitsubishi Heavy Industries, Ltd. (MHI) has received consecutive orders for blast-furnace-gas (BFG) fired gas turbine combined-cycle (GTCC) power generation plants from China and Korea. The equipment for a 150 MW (megawatt) BFG-GTCC power plant for Qian'an Iron and Steel Works, part of the Shougang Group, a major Chinese steelmaker, is slated for delivery in May 2009. The equipment for two 142 MW plants of the same kind, 284 MW in total, are for POSCO Power Corporation, the largest IPP (independent power producer) in Korea and are scheduled for delivery in 2009 and 2010, respectively. POSCO Power is building the power plants at Gwangyang Works of POSCO, the Korea's largest steel company headquartered in Pohang. Mitsubishi Corporation will handle the trade particulars for both orders.

The latest Chinese order brings the total number of BFG GTCC plants ordered from the country to MHI to 16. The Korean order represents the country's second order to MHI for low calorie heating value furnace-gas-fired GTCC plant, following a FINEX gas-fired plant ordered for POSCO Pohang Works in 2005.

Qian'an Iron and Steel Works of Shougang Qian'an Iron & Steel Co., Ltd., a Shougang Group affiliate, is located in Hebei Province approximately 150 kilometers east of Beijing. The company aims to effectively utilize the low-calorie by-product gas from its blast furnace to meet part of its own electricity needs at the steel plant. The GTCC plant on order will incorporate an M701S (DA) gas turbine, a steam turbine, a generator and other equipment. MHI will be responsible for the design and manufacture of the gas and steam turbines. Mitsubishi Electric Corporation will supply the generator.

The Shougang Group, which is headquartered in Beijing, earlier operated blast furnaces in the capital city, but in the runup to the Olympic Games closed down furnaces largely as an environmental measure. In Hebei Province, the company is now constructing large-scale furnaces that incorporate advanced environmental protection measures. The introduction of the BFG-GTCC plant is part of that environment protection program.

POSCO Power, which is the power generation affiliate company of POSCO and headquartered in Seoul, is also introducing the BFG-GTCC at POSCO's Gwangyang Works, located at the center of Korea's southern coast, to utilize energy effectively in the POSCO Group and reduce environmental burden. The two 142 MW BFG-GTCC plants will each consist of an M501S (DA) gas turbine, a steam turbine, a generator and other equipment. The order was placed to MHI through POSCO Engineering & Construction Co., Ltd. (POSCO E&C) of Pohang, which is a major general construction company in Korea and the EPC (engineering, procurement and construction) contractor of this BFG-GTCC project. POSCO E&C was established in 1994 by merging the POSCO Group's construction and engineering companies. MHI will design and manufacture the gas and steam turbines, and Mitsubishi Electric Corporation will supply the generators.

Because blast furnace gas has a lower calorie heating value than natural gas, stable operation of BFG-fired gas turbines requires advanced combustion technology. MHI established its proprietary BFG-GTCC power generation technology in the 1980s, including the development of dedicated BFG combustors. The company currently enjoys a near 70% share in the global BFG-GTCC market.