MHPS Receives Order for 2 Units of the M701F5 Gas Turbine For a Cogeneration GTCC Plant under Development in Beijing By China's Huaneng Power International -- First Order for this Model for Use in China --

Yokohama, September 29, 2015 -- Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has received an order for two M701F5 gas turbines for a cogeneration gas turbine combined cycle (GTCC) power generation plant for combined heat and power (CHP) supply being newly established by Huaneng Power International, Inc., one of China's foremost power providers. The gas turbine will be supplied through Dongfang Turbine Co., Ltd., a manufacturer of heavy electric machinery incorporating technology licensed by MHPS. The order represents the first time an M701F5 gas turbine has been ordered for use in China.

The cogeneration GTCC power plant being established by Huaneng Power International represents Huaneng Beijing thermal power plant phase 3 under way in Beijing, with the new plant set to replace a coal-fired power plant created during Phase I. The 1,100 MWe (megawatts electrical) new facility will respond to robust demand for power and heat in the Beijing metropolitan area. During the winter season, the facility is capable to supply up to 750 MWt (megawatt thermal) heat by switching operation mode, in addition to power supply. Previously MHPS has delivered two M701F4 gas turbines for Phase II of the Huaneng Beijing thermal power plant. The latest order brings the number of MHPS's gas turbines ordered for the plant to four.

Besides the two M701F5 gas turbines on order, the new GTCC power generation plant will also incorporate steam turbines, heat recovery steam generators (HRSG), generators, etc. MHPS will be in charge of manufacturing and supplying the gas turbines, the core components of the plant. For the Phase 3 of the plant, a separate order for an eight years gas turbine long term service agreement (LTSA) is expected to be placed soon through Mitsubishi Heavy Industries Donfang Gas Turbine (Guangzhou) Co. Ltd., a joint venture of MHPS and Dongfang Turbine. Based on the LTSA, MHPS will provide periodical gas turbine maintenance services, supply necessary parts, and dispatch technical advisors.

The M701F5 is a high-performance gas turbine based on the widely proven M701F4, upgraded through introduction of the latest technologies. Collectively, M701F4 gas turbines have logged over 220,000 hours of operational service as of July 2015. The M701F5 realizes the world's highest level of GTCC thermal efficiency, over 60 Percent (lower heating value). This enhanced efficiency reduces CO₂ emissions while also keeping emissions of nitrogen oxides (NOx) attributable to the higher temperatures to the level of earlier systems, thereby enabling efficient energy usage and contributing to environmental protection.

Going forward, MHPS will, in collaboration with Dongfang Turbine, continue its efforts to further enhance the presence of M701F5 gas turbine in Chinese market and accelerate its marketing activities.

Huaneng Power International is a core member of China Huaneng Group (CHNG), China's largest state-owned holding company in the power industry. Established in 1994, it ranks among the country's top five power providers. The company primarily undertakes the construction and operation of, and investment in, power plants in eastern China, in locations including Shandong Province, Jiangsu Province and Shanghai. Huaneng Power International also sells electric power to power transmission companies throughout China.

Dongfang Turbine, headquartered in Sichuan Province, is one of China's three largest manufacturers of heavy electrical machinery. The company is in a technology cooperation relationship with MHPS in the area of gas turbines, and under MHPS's technical licensing Dongfang Turbine to date has received orders for 60 gas turbines (Note) , including deliveries of 6 units to Huaneng Power International. The two M701F5 units newly ordered, however, will be manufactured by MHPS and supplied through Dongfang Turbine.

GTCC is the cleanest and most efficient power generation system running on fossil fuel. Going forward, MHPS will continue its quest to achieve market penetration of its GTCC power generation equipment and the high-efficiency core equipment to support these systems, as its way of contributing to the efficient use of resources and reduction of environmental loads worldwide.

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