MHIEC Receives Order for 150 Tons/day Waste-to-Energy Plant From Yamagata Area Environmental Office Association -- Award Includes Construction of Gasification and Melting System and Waste HeatRecovery Equipment Plus 20½-Year Plant Operation Contract --

Tokyo, December 18, 2014 - Mitsubishi Heavy Industries Environmental & Chemical Engineering Co., Ltd. (MHIEC), has received an order from the Yamagata Area Environmental Office Association, a body encompassing two cities and two towns in Yamagata Prefecture, for the construction and operation of municipal solid of waste (MSW) incineration facility (Waste-to Energy Plant/WTE Plant). The project award calls for MHIEC to build two fluidized bed type gasification and melting system (Notes 1) with capacity of 150 tons per day (tpd) and a waste heat recovery system, and to operate the facility for a period of 20 years and 6 months. The total value of the order, construction and operation services combined, is approximately 18.5 billion yen (before taxes). The new plant is scheduled to go onstream in October 2017.

The newly received order, formally known as the "Tachiyagawa Energy Recovery Facility Construction and Operation Project," calls for the creation of WTE Plant to replace the outmoded Tachiyagawa MSW Incineration Plant, a 180 tpd facility in the city of Yamagata has operated in its Oazaurushiyama sector since 1982. The new plant will be constructed on adjoining land under a "DBO" (design, build and operate) (Notes 2) scheme. Core equipment will include two fluidized bed gasification and melting system with capacity of 75 tpd each, and a steam turbine power generation and hot water supply system that runs on waste heat produced in the incineration process.

MHIEC will be responsible for the plant construction. After completion, plant operation will be handled by Yamagata Eco-Creation Co., Ltd., a company based in Yamagata City established with capital backing from MHIEC. In addition, a group of seven companies, including five from Yamagata City, will be formed to participate in construction and operation. In this way MHIEC will undertake the project working closely will local enterprises.

The Yamagata Area Environmental Office Association is an association jointly operated by Yamagata City, Kaminoyama City, Yamanobe Town and Nakayama Town to handle MSW and night soil treatment within their combined geographic area. Combustible waste generated in the area is treated at two incineration facilities operated by Yamagata City. The decision to construct and operate a new waste-to-energy plant was made in a quest to create a recycling-oriented society.

During the bidding process for the project, proposals were evaluated comprehensively, considering not only the various candidates' bid amounts but also, significantly, their technological expertise and operational knowhow. The proposal submitted by the MHIEC group was ultimately deemed most outstanding by the technology evaluating committee established by the Yamagata Area Environmental Office Association.

MHIEC is a world-leading company with a rich track record in the delivery and operation of waste-to-energy plant both in Japan and overseas. Based on these strengths, going forward the company will continue to focus on stable disposing and recycling of wastes and will proactively propose comprehensive solutions, from initial design and engineering to plant operation, as its way of contributing to the creation of a resource-recycling society.

(Notes 1) Fluidized bed gasification and melting system: A type of furnace in which, during the initial phase, waste is decomposed into combustible gas and unburned char; in the second phase, this gas and char are fed into a melting furnace to produce molten slag.

(Notes 2) DBO ("design, build and operate"): A scheme under which a public organization funds and owns a facility but relegates DBO work to the commercial sector.

PRESS CONTACT:
Sales & Business Development Division Domestic Sales & Business Development Department