MHPS Receives Order for Gas-fired GTCC Power Generation Equipment for Hongkong Electric's Lamma Power Station Unit 10

Yokohama, January 19, 2016 -- Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has received an order for natural-gas-fired gas turbine combined cycle (GTCC) power generation system equipment for Lamma Power Station Extension -- Unit 10 (output: 350 megawatts [MW]) to be built in Hong Kong by The Hongkong Electric Co., Ltd. (HK Electric). Under the prime contractor on the project, Mitsubishi Corporation (MC), MHPS will supply the main components of the power plant. Operation of the Unit 10 is scheduled to commence in January 2020.

The newly ordered GTCC power generation facilities will be constructed on Lamma Island, which is situated to the southwest of Hong Kong Island, adjacent to existing Unit 9. The work is part of a large-scale project under way in line with the government authority's policy targeting expansion of Hong Kong's ratio of gas-fired power generation as a way of reducing environmental impact. Once in operation, the new facility will respond to Hong Kong Island's robust power demand.

MHPS will manufacture and supply its M701F4 gas turbine, a steam turbine, heat recovery steam generator and air quality control system for the HK Electric's new GTCC power generation plant.

HK Electric is one of Hong Kong's leading power providers and is the sole supplier of electricity to Hong Kong Island. MHPS has had business relations with HK Electric for many years, as confirmed by the Company's solid track record of deliveries of power generating system core components -- including gas turbines, steam turbines and boilers -- for the Lamma Power Station's Units 1 through Unit 9. The latest order reflects HK Electric's high assessment of this proven track record.

GTCC is the cleanest and most efficient method of power generation employing a fossil fuel. Besides the power generated by the gas turbine, a GTCC system produces additional power by using high-temperature waste gas from the former process to generate steam to drive a steam turbine. In this way, GTCC power generation delivers outstanding fuel efficiency resulting in effective use of energy, and thus contributes to reducing the burden on the environment.

MHPS has a strong record of deliveries of GTCC systems both in Japan and abroad, and in the process the Company has won the solid trust of markets everywhere for its technologies and proven experience. Going forward, the Company will continue to proactively offer GTCC-based proposals to the global market as systems that make effective use of resources and ease impact on the environment.

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