MHIEC Receives Order for Plant Modification Work in Hyogo, Japan, To Extend Operational Life of Municipal Solid Waste Incineration Facility -- 320 Tons/day Capacity Takarazuka Clean Center --

Tokyo, October 9, 2012 - Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. (MHIEC), a wholly owned subsidiary of Mitsubishi Heavy Industries, Ltd. (MHI), has received an order from Takarazuka City, in Japan's Hyogo Prefecture, for modification work to improve core equipment of a municipal solid waste (MSW) incineration plant at its Takarazuka Clean Center. The modification work, which includes revamping of a stoker furnace (Note 1) type incineration plant having a 320 tons-per-day (tpd) processing capacity that has been in operation for 24 years, is aimed at extending the plant's operational life, increasing the power generation capacity of its steam-turbine generator, and boosting the facility's energy-saving capability. The modification work is slated for completion in March 2015.

The incineration plant, which MHI originally completed in October 1988, consists mainly of two units of a 160 tpd stoker furnace and other peripheral systems. The modification work calls for renewal and conversion of major components of the combustion gas cooling system, flue-gas treatment system, ventilation system and waste heat utilization equipment. By raising the temperature of the steam produced by the heat recovery steam generator, which utilizes waste heat from MSW incinerators, power generation capacity of the steam turbine generator will increase from the current 800 kilowatts (kW) to 925kW. Through this increase in the Center's self-power supply ratio and various energy-saving measures, the refurbished plant will achieve enhanced energy savings and cut CO2 emissions by more than 20 percent (approx. 800 tons) per year, thus helping to prevent global warming. With adoption of MHIEC's patented Hybrid Bag Filter, which employs a catalyst bag filter, the new plant's flue-gas treatment system will eliminate the need for activated carbon, which has been used to remove dioxin from the flue gas, and thereby contribute to reducing plant operation costs.

Recently the number of projects to modify and improve waste treatment facilities, not only to extend their operational lives but to make them more environmentally compatible, has been in an increasing trend as local governments face tight budgets that make it difficult to construct new facilities. Moves have gathered further momentum with the central government's introduction in 2010 of a state subsidy system to promote operational life extension and enhance energy savings of waste treatment facilities (Note 2).

MHIEC, established in 1976, took over MHI's waste treatment plant business in 2008. Leveraging MHI's environment-related technologies and abundant knowhow in the construction and operation of waste management facilities both in Japan and overseas - strengths derived from the company's long record of operations in the field - MHIEC is in a solid position to provide comprehensive solutions in areas spanning from initial design and engineering to actual operation.

The latest order represents the third of its kind placed to MHIEC in the current business year. Earlier orders for modification of incineration plants were received from Oita City in Oita Prefecture and from an association of local municipal offices in the Noshiro-Yamamoto area of Noshiro City in Akita Prefecture. Capitalizing on these three consecutive orders and its own strong track record in previous orders for operational life extension projects, going forward MHIEC will aggressively propose further energy-saving enhancements and system improvements for stable operation at existing waste treatment facilities as well as ways to reduce lifecycle costs, including maintenance and management costs, in a quest to expand its business further.

(Notes 1) A stoker furnace is a common feature of MSW incineration plants. In a stoker furnace, MSW is combusted as it moves along on a fire grate made of heat-resistant castings.

(Notes 2) This program, which falls under the jurisdiction of Japan’s Ministry of the Environment, targets effective use and improvement of existing waste treatment facilities as a contribution to the prevention of global warming. Local governments (city, town or village) that seek to extend the operational life of their general waste processing facilities are eligible to receive subsidies covering one-third to half of the project cost, dependent on the CO2 reduction rate.

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