MHPS Wins Order to Provide Gas Turbine Preventive Detection Services in China -- Introduction of Digital Solutions at Beijing GTCC Power Plant Will Allow More Flexible Operations --

Yokohama, December 16, 2016 -- Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has received an order from China Shenhua Guohua Power Co., Ltd. to supply gas turbine preventive detection services. The service is scheduled to begin in April 2017 for a gas turbine combined cycle (GTCC) power plant supplying electricity to the Beijing area. The order was made through Mitsubishi Heavy Industries Dongfang Gas Turbine Co., Ltd. (MHIDF), a joint venture with the Chinese heavy equipment manufacturer Dongfang Turbine Co., Ltd., which is also a technology licensee of MHPS.

The detection services will be provided for the Shenhua Beijing Guohua Gas-fired Thermal Power Plant. The plant began commercial operations in 2015 and supplies 950 megawatt of electricity using two M701F gas turbines delivered by Dongfang Turbine. MHPS has also concluded a 12-year long-term service agreement (LTSA) with the plant through MHIDF.

This order reflects MHPS's efforts to support the thermal power plant operations and will be the first digital solution provided to a GTCC power plant in China, where demand for operational flexibility has increased in recent years. The gas turbine preventive detection services will utilize MHPS's AI (artificial intelligence) technology, as well as advanced algorithms to identify the cause of an anomaly in advance, contributing to improved utilization rates. In addition, the service includes a function to propose appropriate countermeasures when anomalies become apparent.

China Shenhua Guohua Power Co., Ltd. is engaged in the power generation business under the umbrella of Shenhua Group Corporation Limited, the world's largest coal company and the world's largest coal dealer. Established in 1999 with headquarters in Beijing, it is the sixth largest power generation group in China.

MHPS's digital solutions are already installed and operational at a number of plants and are supporting power plant operations by improving the performance of equipment, avoiding unplanned outages, and enabling maintenance to be optimized based on advanced detection. The introduction of this detection service is part of the global expansion of MHPS's digital solutions. Together with Dongfang Turbine, MHPS has received orders for over 60 state-of-the-art gas turbines for power plants throughout China and plans to expand its operational support services using digital solutions to many power plants in the future. MHPS plans to open a monitoring center at MHIDF to prepare for this service expansion.

Going forward MHPS will continue to contribute to the stable supply of electric power worldwide by expanding sales of highly efficient thermal power generation facilities and disseminating operational support services for power plants.

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