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MHI Receives Large-scale Natural Gas-fired GTCC Power Plant Order

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Tokyo, January 26, 2009 - Mitsubishi Heavy Industries, Ltd. (MHI) has received a full-turnkey order for a 750 MW (megawatt) natural gas-fired gas turbine combined-cycle (GTCC) power plant from PT. PLN (Persero), Indonesia's state-owned electricity company. The project is to construct a new GTCC power plant on the premises of existing Tanjung Priok Power Plant, located approximately 10 kilometers northeast of the central part of Jakarta, targeting expansion of the power station's generation capacity under a financing arrangement by Official Development Assistance (ODA) of Japan. The plant is slated to go on-stream in November 2011.

For the GTCC plant on order, MHI will supply two M701F gas turbines, two heat recovery steam generators (HRSG), one steam turbine and the balance of plant (BOP). Mitsubishi Electric Corporation will supply the generators, and AREVA T&D will provide the substations and power transmission facilities. Mitsubishi Corporation will handle the trade particulars.

In Indonesia, electricity demand has been increasing sharply along with economic growth, and as a result West Java, the region centered on Jakarta, in particular suffers from chronic power shortages. In response, in order to ease the tight power supply situation PLN has been focusing on new power plant constructions as well as expansion and repowering of the existing plants.

In 2006 MHI delivered two M701F gas turbines to PLN's Cilegon Power Plant, marking the country's first introduction of the F-type gas turbine. PLN also opted for two units of the same turbine for repowering of its Muara Karang Power Plant, where construction work is now under way. MHI believes that its track record of deliveries of large-size gas turbines to PLN, coupled with PLN's high acclaim for MHI’s GTCC power plant technologies, contributed to the awarding of the latest order.

With GTCC type power generation, gas and steam turbines are used in combination to generate electricity in two stages, utilizing high-temperature exhaust gas from the gas turbine. This configuration enables GTCC power plants to achieve higher thermal efficiency than non-GTCC plants such as conventional boiler steam turbine plants. Higher efficiency means that GTCC plants reduce fuel consumption relative to electricity output and emit less CO2, thus making them more environmentally friendly.

Spurred by the latest order, going forward MHI intends to further boost its global marketing activities for its natural gas-fired GTCC power generation systems – systems that contribute to efficient energy usage and reduction of environmental burden while simultaneously responding to the need to cope with robust electricity demand and economic growth.

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.