MHPS Receives Order for Gas-fired GTCC Power Generation Equipment from HK Electric -- For Lamma Power Station Unit 11 Construction Project --

Yokohama, February 15, 2017 -- 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 11 (output: 350 megawatts [MW] class) to be built in Hong Kong by The Hongkong Electric Co., Ltd. (HK Electric). Mitsubishi Corporation (MC) is prime contractor on the project. MHPS will supply the main components of the power plant through MC, with operations scheduled to begin in January 2022. The GTCC power generation equipment delivered to the Lamma Power Station will be a consecutive order following Unit 10 which was awarded at the end of 2015.

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 and Unit 10 which is now under construction. 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.

Among the main equipment making up the GTCC power generation facility, MHPS will manufacture and supply its M701F gas turbine, a steam turbine, heat recovery steam generator and air quality control system. Mitsubishi Electric Corporation will supply generator.

HK Electric is Hong Kong's leading power provider and is the sole electricity provider to Hong Kong Island and Lamma 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 equipment now being manufactured for Unit 10; and many other construction projects for conversion of existing facilities to high-efficiency power generation equipment such as GTCCs.

Mr. Wan Chi-tin, Managing Director of HK Electric stated, "MHPS has supplied power generation equipment for about 99 percent of our output base so far, and this latest order also reflects our high assessment of the excellent performance and proven track record of MHPS products."

GTCC is the clean 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 exhaust 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 around the world, 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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