Press Information

MHI to Collaborate with IBERDROLA Ingenieria Y Construccion of Spain
In Construction of EU-APWR Nuclear Power Generation Plants


Tokyo, June 2, 2010 - Mitsubishi Heavy Industries Ltd. (MHI) has agreed with IBERDROLA Ingenieria y Construccion, S.A.U. (IBERDROLA Engineering & Construction), a Spanish engineering company, to collaborate for the bidding of constructing potential nuclear power generation plants (NPP) in some European countries. The two companies have already signed a memorandum of understanding (MOU) to cooperate on an exclusive basis for the qualification process to a European utility. Through this collaborative initiative MHI aims to accelerate market penetration of its EU-APWR, one of the world's largest - 1,700 MWe (megawatts of electricity) class - advanced pressurized water reactors (APWR) targeted at major European utilities. The agreement marks MHI's first collaborative partnership with a European company relating to the EU-APWR.

Based on the MOU, MHI will be responsible for overall engineering of the NPP and major NPP components and equipment while IBERDROLA Ingenieria will take charge of installation work and design, procurement and commissioning of nuclear island.

IBERDROLA Ingenieria, founded in 1995, is a subsidiary company of IBERDROLA, one of the world's major energy groups; it serves as the hub of the Group's engineering and construction business. IBERDROLA Ingeniería operates globally and ranks second worldwide in the area of engineering activities for the electric utility industry, handling EPC (engineering, procurement and installation) work for power generation plants of all types, including thermal, hydropower, nuclear power, wind and photovoltaic. In the area of nuclear power generation, the company already boasts a substantial track record in work relating to steam generator replacement and turbine generator replacement.

MHI developed the EU-APWR based on the 1,538 MW APWR planned for the Tsuruga Power Station Units 3 and 4 for the Japan Atomic Power Company. Design changes were made to reflect European regulations and the demand of EU customers for enhanced operating performance. Like the similarly sized US-APWR, MHI's APWR for the US market, improvements for greater economic efficiency were incorporated, including larger components and greater power generation capacity; an automatic safety system and design improvements also enable the world's highest level of thermal efficiency. Currently MHI is conducting a feasibility study of the EU-APWR for compliance with European safety requirements.

In Europe there is a trend to increase generating capacity by either newly introducing or resuming nuclear power generation. If this trend continues, several dozen new NPPs may be built in Europe by 2030. In response, going forward MHI will continue to promote introduction of its EU-APWR into the European market vigorously.


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