MHPS Signs Contract on Project to Construct Lignite-fired Ultra-supercritical-pressure Thermal Power Unit in Poland -- New Facility to Apply Company's Proprietary Technologies in Low-grade Coal Combustion for Boilers --

Yokohama, July 17, 2014 - Mitsubishi Hitachi Power Systems Europe GmbH (MHPS-EDE), a group company of Mitsubishi Hitachi Power Systems, Ltd. (MHPS), has signed a contract, jointly with two European firms, for a project to build a lignite-fired ultra-supercritical-pressure thermal power unit at Turów, Poland, for a power generation company under the corporate umbrella of Polska Grupa Energetyczna S.A. (PGE), a state-controlled power provider listed on Warsaw Stock Exchange in Poland. The total amount of the order placed to the consortium of the three companies for the construction of a 450 megawatts (MW) power unit is approximately 110 billion yen (3.25 billion Zloty). The project's aim is to use MHPS's proprietary technologies in low-grade coal combustion for boilers in order to enable efficient use of lignite. The plant is slated to commence operations in the middle of 2019.

MHPS-EDE, the consortium leader, is an MHPS's European base of operations located in Duisburg, Germany. The project, to construct a new lignite-fired thermal power unit at Turów in Poland's southwest region, will be carried out by a consortium including MHPS-EDE and two other firms: the civil engineering company Budimex SA of Poland and the engineering firm Técnicas Reunidas, S.A. of Spain. Once in operation, the new unit will respond to robust electric power demand accompanying Poland's steady economic growth.

The newly built unit of Turów power plant will incorporate a boiler, steam turbine, condenser, power generator, instrumentation & control equipment, desulfurization equipment, etc. MHPS and MHPS-EDE will be in charge of all aspects from core equipment manufacture and supply to test operation. Budimex and Técnicas Reunidas will be responsible for civil engineering, construction, installation, electrical machinery, etc.

Poland possesses one of the world's largest reserves of coal, and approximately 90 percent of the country's gross power generation relies on coal firing. Lignite, which accounts for a large proportion of the nation's coal reserves, has a high water content that makes it difficult to burn. MHPS, however, has outstanding lignite coal-fired combustion technologies and an abundant track record in this area. By installing desulfurization equipment into high-efficiency lignite-fired boilers, the company is able to provide power generation systems that make effective use of lignite with reduced emissions compared to older plants.

MHPS also has a strong track record in coal-fired power generation equipment supplied in Poland. In 2012 the company received a full-turnkey order for a 1,000 MW ultra-supercritical-pressure coal-fired thermal power plant currently under construction for the power provider ENEA Wytwarzanie S.A., and numerous deliveries of desulfurization equipment have also been completed. The contract signing on the Turów power plant project reflects the high reputation MHPS enjoys in Poland for both its technologies and track record.

PGE is Poland's largest state-controlled power provider listed on Warsaw Stock Exchange. Headquartered in Warsaw, the company has a network of facilities with a combined power generation capacity of 12,860 MW, equating to a roughly 38 percent share of Poland's domestic power supply. Founded in 2007, PGE presently has approximately 41,000 employees.

Going forward, MHPS will continue to apply its low-grade coal combustion technologies for high-efficiency ultra-supercritical pressure boilers, and undertake aggressive marketing in a broad range of countries and regions where demand for coal-fired power generation systems is expected to increase - especially in Eastern Europe, Russia, Turkey and Indonesia.

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