Press Information

MHI Receives Order for 2 Gas Turbines from Dongfang Turbine of China
For GTCC Power/Heat Generation Plant of Huaneng Power International


Tokyo, June 15, 2010 - Mitsubishi Heavy Industries, Ltd. (MHI) has received an order for major components of natural gas-fired gas turbine combined-cycle (GTCC) power generation systems with heat supply capability, which will be installed in a cogeneration facility to be built by Huaneng Power International, Inc., one of the major electricity providers in China. The order was placed through Dongfang Turbine Co., Ltd., a major power generation equipment manufacturer in China to which MHI has licensed its gas turbine technology. MHI will provide two M701F gas turbines as well as major components of a steam turbine. Delivery of the gas turbines is scheduled in February and March of 2011.

The GTCC cogeneration facility in Gaobeidian, in which the gas turbines and other components are to be installed, is the first of six projects that is planned near Beijing area. The facility with 920 MWe (megawatt electrical) during the summertime, or 830 MWe as well as 660 MWt (megawatt thermal) during the wintertime, will provide electricity and heat to meet the fast-growing demands in the nation's capital city and surrounding area.

For the facility, MHI will specifically supply two gas turbines, control system components, and steam turbine components. Dongfang Turbine will deliver the gas turbine auxiliary system, steam turbine and its auxiliary system to Huaneng Power International through Dongfang Electric Corporation, the parent company of Dongfang Turbine. Mitsubishi Corporation will handle trade particulars.

MHI has also received an order through the Mitsubishi Heavy Industries Donfang Gas Turbine (Guangzhou) Co. Ltd. (MHI-DGT), which is the joint venture of MHI and Dongfang Turbine Co., Ltd, for the six years gas turbine long term service agreement (LTSA) . In this LTSA, MHI will supply gas turbine hot parts, MHI-DGT will extend repair service of hot parts, and Dongfang Turbine will dispatch technical advisors for the inspection.

Huaneng Power International, established in 1994, is a core company of China Huaneng Group. Huaneng Power International mainly operates in eastern China, including in the Shangdong and Jiangsu Provinces and Shanghai. The company constructs, operates and manages large power plants, as well as their investments, and sells electricity to electricity transmission companies throughout China. In addition to its core power generation by coal-fired thermal power, the company also produces electricity by hydraulic power, wind turbine and nuclear power. In 2008, Huaneng Group successfully acquired Tuas Power, which supplies almost a quarter of the electricity needed in Singapore.

Dongfang Turbine, established in 1966, is one of the top three power generation equipment suppliers in China. Headquartered in Sichuan province, the company manufactures and provides maintenance services for steam turbines, hydro turbines, gas turbines and compressors. MHI and Dongfang Turbine have received orders for a total of 14 gas turbines in China since their gas turbine licensing agreement in 2003. The two companies established a gas turbine core components manufacturing and marketing joint venture* in China in 2004, which began production and provision of after-sale services in 2005.

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 higher thermal efficiency than non-GTCC plants such as conventional boiler steam turbine plants. Higher efficiency means that GTCC plants consume less fuel and emit less CO2 relative to electricity output, thus making them friendlier to the environment.

On the strength of the latest order, MHI intends to further strengthen its activities in collaboration with Dongfang Turbine in the future, to explore demands for highly efficient GTCC power generation systems in the continuously growing Chinese gas turbine market and contribute to the efficient use of energy and reduction of environmental burdens in China.

Note: Mitsubishi Heavy Industries Dongfang Gas Turbine (Guangzhou) Co., Ltd. was established in Guandong Province in 2004, with MHI owning a 51% stake and Dongfang Turbine holding the remaining 49%.


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