Press Information

MHI Receives First Order
For Blast-Furnace-Gas Fired GTCC Power Plant for Hungary

No.1191
Print

Tokyo, August 7, 2007 - Mitsubishi Heavy Industries, Ltd. (MHI) has received an order, jointly with Sumitomo Corporation, from Industrial Union of Donbass Corp. (IUD) of Ukraine for a blast-furnace-gas (BFG) fired gas turbine combined-cycle (GTCC*) power generation unit to be installed at DUNAFERR Danube Ironworks Private Company Limited, a major steelmaker in Hungary and an IUD affiliate. The new unit is scheduled to go on-stream in December 2009. The order marks MHI's first GTCC power generation system destined for Hungary.

The BFG-fired GTCC power generation facility will be built at an ironworks in Dunaújváros in central Hungary, approximately 80 kilometers south of Budapest, the capital. The 150 MW (megawatt) power generation system is targeted at effectively utilizing the exhaust gas from the existing blast furnace in order to meet part of the plant's electricity needs. The system will mainly consist of an M701S (DA) gas turbine, a steam turbine, a heat recovery steam generator (HRSG) and a generator.

The order calls for MHI to supply the entire power generation system. MHI's Takasago Machinery Works will be responsible for the gas turbine, gas compressor, HRSG, condenser and the balance of plant (BOP), while the Nagasaki Shipyard & Machinery Works will provide the steam turbine. Mitsubishi Electric Corporation will build the generator.

IUD is a holding company embracing more than 40 businesses both within and outside Ukraine, including enterprises engaged in refining and processing of ferrous metals. In 2006, a team comprised of MHI and Sumitomo received an order for a BFG-fired GTCC power plant for a local IUD affiliate - Alchevsk Iron and Steel Works. MHI believes its handling of that previous order and its technological lead have been highly acclaimed and contributed to its winning of the new order.

DUNAFERR, established in 1955, is a major Hungarian steelmaker producing 1.7 million tons of crude steel a year. In 2002 the Hungarian government decided on the company's privatization, and based on that decision DUNAFERR was privatized two years later through an injection of Ukrainian capital.

At ironworks using blast furnaces, BFG containing carbon oxide (CO) and hydrogen (H2) is produced as a by-product during iron-ore reduction. Many plants utilize the gas as fuel to generate electricity, as a means of making effective use of energy resources. However, because BFG has a lower calorie rating than natural gas - only about one-tenth in BTU (British thermal unit) parameters - stable combustion of BFG-fired gas turbines requires sophisticated technology. MHI independently established its BFG GTCC power generation technology in the 1980s, including development of BFG dedicated combustors. Since then, the company has delivered numerous systems to iron and steel manufacturers at home and abroad, enjoying a near 70% share of the world's BFG gas turbine market.

Buoyed by this latest order, going forward MHI intends to further strengthen its marketing activities for BFG GTCC plants in its ongoing quest to contribute to more effective utilization of energy and reduction of environmental burdens around the world.

Note: With GTCC type power generation, gas and steam turbines are used in combination to generate electricity in two stages. In the first stage the gas turbine generates electricity; and in the second stage steam produced by high-temperature exhausts from the gas turbine drives the steam turbine, again producing electricity. This dual configuration enables GTCC power plants to achieve higher thermal efficiency than non-GTCC plants. Higher efficiency means that GTCC plants require less fuel relative to electricity output and emit less CO2, thus making them more environmentally friendly.