MHPS Signs MOU with Dongfang Electric and Sichuan Provincial Investment Group on a State-of-the-Art Natural-Gas-Fired Power Generation Facility -- Collaboration on Green Energy Model Plant --

･ MOU expected to introduce J-Series gas turbine to Sichuan Province in China
･ MHPS to provide technical support for manufacturing J-Series at Dongfang Electric group
･ Signing ceremony attended by Sichuan Governor Yin Li

YOKOHAMA, JAPAN (August 29, 2018) - On August 28, Mitsubishi Hitachi Power Systems, Ltd. (MHPS) signed a memorandum of understanding (MOU) with China's Dongfang Electric Corporation and Sichuan Provincial Investment Group Co., Ltd. pursuant to plans for a model project adopting the latest J-Series gas turbine at a thermal power plant which Sichuan Provincial Investment Group intends to build in the province. The signing ceremony took place in Tokyo and was attended by Sichuan Governor Yin Li. Since 2003, MHPS has extended a widening spectrum of licensing privileges in large-scale gas turbines to Dongfang Electric. The newly bolstered business partnership is targeted at deepening MHPS' relationships with Dongfang Electric and Sichuan Provincial Investment Group-two companies that occupy key positions in China's gas turbine market, where demand for high-efficiency models continues to grow.

The J-Series is MHPS' state-of-the-art high-efficiency gas turbine and is optimally suited to the Sichuan Government's plans of implementing high-efficiency gas turbine combined cycle (GTCC) power generation to reduce the local environmental burden. Additionally, MHPS will provide technical support for the manufacturing process as well.

Dongfang Electric is a leading state-owned company, based in Sichuan, under the oversight of China's central government. Dongfang Turbine Co., Ltd. a Dongfang Electric group company is one of the country's key manufacturers of heavy electrical equipment, and as a licensee of MHPS, the company has to-date received orders for more than 70 large-scale gas turbines. In March, 2018 MHPS established MHPS Chengdu Innovation Center in the city of Chengdu-Sichuan's capital-in order to strengthen collaboration with Dongfang Electric. The Innovation Center is now jointly proposing solutions and providing support for both new constructions and replacement of local power generation facilities with DEC as well supporting local procurement of DEC. Furthermore, through Mitsubishi Heavy Industries and Dongfang Gas Turbine (Guangzhou) Co., Ltd., a joint venture established in 2004, MHPS and Dongfang Turbine are providing after-sale services enabling swift response to local customer needs.

Going forward, in close partnership with Dongfang Electric group, MHPS will strive to expand its share in China's growing gas turbine market. In doing so, it will strive to enhance China's energy efficiency, ease environmental burdens, and promote local economic and industrial development.