Press Information

MHI Receives Order for Core Components
Of Natural Gas-fired GTCC Power Generation Plant in Azerbaijan

No.1418
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Tokyo, April 14, 2011 - Mitsubishi Heavy Industries, Ltd. (MHI) has received an order for major components for the second Shimal Gas Combined Power Plant Project, a project under which Azerenerji Joint Stock Company, a state-owned utility in the Republic of Azerbaijan, is to build a natural gas-fired gas turbine combined cycle (GTCC) power generation plant. The order marks the second placed to MHI for GTCC projects in Azerbaijan, following an order relating to the Shimal 1 GTCC plant in 1999. The core components on order will be delivered to Toyo Engineering Corporation, the main contractor of the project. The plant is scheduled to go on-stream in November 2013.

The 400 MW (megawatt) Shimal 2 GTCC plant will be built in the suburbs of Baku, the capital, under a yen credit financing arrangement based on an ODA agreement between the governments of Japan and Azerbaijan. The high-efficiency power plant will play a part in supplying electricity to the Baku metropolitan area, center of the country's robust economic growth.

With GTCCs, gas and steam turbines are used in combination to generate electricity in two stages, utilizing high-temperature exhaust gas from the gas turbine to produce steam to drive the steam turbine. This configuration enables GTCC power plants to achieve higher thermal efficiency, which in turn reduces fuel consumption and results in emission of less carbon dioxide (CO2) relative to electricity output, thus making them friendlier to the environment. For the GTCC system on order, MHI will manufacture and supply an M701F gas turbine and a steam turbine; it will also dispatch technical advisers. Mitsubishi Electric Corporation will be responsible for the generator.

Azerenerji is a 100% state-owned company that handles all power generation and transmission activities in Azerbaijan. As the nation's economy marks continuous expansion attributable mainly to oil and natural gas development in the Caspian Sea area, measures to accommodate sharply increasing electricity demand have been an urgent matter. In addressing this issue, the country has been building new power plants as well as refurbishing aged power generation facilities. The GTCC plant construction project on order is part of this initiative.

MHI has delivered many GTCC power generation systems in Japan and other countries to date, and the company enjoys a solid reputation in the power generation system market both for its technological expertise and delivery track record. Adding the momentum from the latest order, going forward MHI will now further strengthen its aggressive marketing activities for its GTCC power generation systems.