MHPS to Supply Core Components for GTCC Power Generation Plant Including Two M501J Gas Turbine Units -- Supply Agreement Signed with Daewoo E&C Increases Total Number of J-Series Gas Turbines Supplied to Korea to 13 --

Yokohama, June 9, 2014 - Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has signed a contract with Daewoo Engineering & Construction Ltd. (Daewoo E&C) under which MHPS is to supply two M501J gas turbines, one steam turbine and three generators for the Pocheon Combined Cycle Power Plant, a gas turbine combined cycle (GTCC) power generation plant in Korea. The power plant is slated to go on stream in November 2016. The agreement increases the collective number of J-Series gas turbine supply by MHPS to Korea to 13 units.

The GTCC plant will be built in Pocheon, a city located approximately 45 kilometers northwest of Seoul, by Daewoo Energy Co., Ltd., a special purpose company (SPC) affiliated with Daewoo E&C. Through manufacture and supply of the core components for the power plant, including the state-of-the-art M501J gas turbines, MHPS will support Korea's efforts to meet strong power demand in the Seoul metropolitan area.

The 60 hertz (Hz) M501J gas turbines were developed using proprietary MHPS technologies. With turbine inlet temperatures of 1,600°C they achieve the world's highest level of efficiency and power generation capacity in systems of this type.

Since the introduction of M501J gas turbines to the market in 2009, orders for the units have steadily expanded in Japan and abroad. Including the 13 units for Korea, collective orders for M501J gas turbines worldwide have reached 27, of which 10 units are already in operation. In addition, orders for two 50 Hz M701J gas turbines have also been received.

GTCC is a high-efficiency power generation system using fossil fuel. The system generates power with a combination of gas and steam turbines, utilizing high-temperature exhaust gas from the gas turbine to produce steam to drive the steam turbine. This configuration results in higher thermal efficiency enabling reduced fuel consumption and lower emissions of carbon dioxide (CO₂) relative to electricity generation, thereby reducing the system's environmental impact. With J-Series gas turbines, GTCC power generation enables reductions in CO₂ emissions of approximately 50 percent compared to conventional coal-fired power generation plants.

Going forward MHPS will further strengthen its marketing activities for state-of-the-art J-Series gas turbines and GTCC power generation systems to promote more efficient use of fossil fuels and thereby help protect the environment.

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