MHPS Receives Order for Two Trains of GTCC Power Generation Systems from Fukushima Gas Power -- LTSA and O&M contracts for "Soma Port Natural Gas Power Station" also concluded --

No. 081

Yokohama, November 14, 2016 -- Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has received an order for two trains of high efficiency power generation systems, including M701F gas turbines and steam turbines, from Fukushima Gas Power Co., Ltd. In addition, Long-Term Maintenance Agreement (LTSA) and Operation & daily Maintenance (O&M) contracts for the order have been signed. The trains will be used at a 1.18 gigawatt GTCC power plant, to be built at Soma Port Wharf No. 4 (Shinchi, Soma District, Fukushima Prefecture), where commercial operations are scheduled to commence in spring 2020.

Fukushima Gas Power was established in April 2015 with the aim of developing a natural gas-based thermal power generation business. It has five shareholders: Japan Petroleum Exploration Co., Ltd. (JAPEX), Mitsui & Co., Ltd., Osaka Gas Co., Ltd., Mitsubishi Gas Chemical Company and Hokkaido Electric Power Co., Inc. The "Soma Port Natural Gas Power Station" (tentative name) that the company will build will be located next to the "Soma LNG Base," now under construction by JAPEX at Soma Port, and it is planned that this base will supply vaporized LNG (Liquefied Natural Gas) to the GTCC power generation systems.

GTCC power generation systems comprise components such as gas turbines, steam turbines, exhaust heat recovery boilers and generators, and in addition to generating power with a gas turbine, they use the high-temperature exhaust gases from the gas turbine to produce steam in a boiler, allowing them to generate additional power with a steam turbine. MHPS will supply two M701F gas turbines and steam turbines as well as large auxiliary machines, which are the main facilities of the power plant, and construct the GTCC power generation systems based on an EPC (Engineering, Procurement and Construction) contract. Mitsubishi Electric will supply the generators.

Further, after commencing operations, MHPS will work in cooperation with Mitsubishi Electric and Tokyo Energy & Systems Inc. to conduct operations, maintenance, management, regular inspection work and operational remote monitoring services for the GTCC power generation systems under LTSA and O&M contracts.

The plan for the Soma Port Natural Gas Power Station is part of the "Fukushima International Study Industry City (Innovation Coast) Design" decided by the government in 2014, and is positioned as a "New Energy Generation; Low Environmental Impact Energy Introduction" project. It is expected to contribute to rebuilding the industrial base in the Hama-dori area (coastal area) in Fukushima Prefecture, and to the creation of new towns.

MHPS has received orders and delivered a large number of GTCC power generation systems in Japan and overseas, and has won the trust of the market widely both in terms of its technology and achievements. The company will continue to contribute to the efficient and stable generation of electricity in global markets through the promotion of GTCC power generation systems that play a useful role for the effective utilization of resources and the reduction of environmental impacts.

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