MHPS to Supply Two Sets of the World's Largest Desulfurization Systems in Serbia -- Order for 1,300 MW Nikola Tesla A Coal-fired Power Plant is Second from Western Balkans Region --

YOKOHAMA, JAPAN (September 11, 2017)- Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has received an order for two sets of one of the world's largest flue gas desulfurization (FGD) systems for the Nikola Tesla A coal-fired power plant in Serbia. The FGD systems will reduce sulfur dioxide (SO₂) and particulates emissions to meet EU environmental standards and support Serbia's future accession efforts. The systems are scheduled to begin operations in the first half of 2021. This is the first time MHPS has received an order for FGD systems from Serbia. This also becomes the second order for coal-fired power plants in the Western Balkans region, following the order for similar systems for the Ugljevik Power Plant, which is presently under construction, in Bosnia and Herzegovina.

The Nikola Tesla A power plant is operated by Electric Power Industry of Serbia (EPS) and consists of six units with a total generating capacity of 1,720 megawatts (MW). It is located some 40 kilometers southwest of Belgrade and is Serbia's largest power plant. The newly ordered two sets of FGD systems whose flue gas desulfurization capacity is 650 MW each are to be installed in units 3 through 6, which have a total output of 1,300 MW. For this project, MHPS will serve as leader of a consortium together with Itochu Corporation and MPP "JEDINSTVO" a.d. (JDS), a Serbian construction firm. The project will be financed by the Japanese Official Development Assistant (ODA) organized by the Japan International Cooperation Agency (JICA).

MHPS, supported by its European subsidiary based in Duisburg, Germany, will be responsible for project management, design, supplying main systems and dispatching technical advisors for installation. Itochu will mainly handle commercial issues. JDS will act as local partner for construction management and civil engineering, including design, installation and local procurement.

The Nikola Tesla A power plant uses lignite coal as a fuel, which has higher levels of sulfur and lower caloric value compared with other coal types. The installation of MHPS's FGD systems will reduce emissions of SO₂ and particulates. SO₂ emissions will be cut by 97%, enabling a SO₂ level lower than the 200mg/Nm³ (Note), in compliance with the European Industrial Emissions Directive (IED).

MHPS's FGD technologies for lignite-fired boilers, along with its successful track-record supplying more than 300 units, were key factors in its selection for this order.

MHPS will continue to reduce environmental impact by proposing high-performance and high-efficiency air quality control systems such as FGD and SCR and electrostatic precipitators for areas where demand is growing due the reinforcement of emissions regulations in Europe and the world.

• mg = milligram. Nm³ = normal cubic meter, a unit to express the amount of gas present in a volume of one cubic meter at 0 celsius and 1 atmospheric pressure.