MHI Receives Order for Two Supercritical-Pressure Boiler/Steam Turbine Sets
From Jaiprakash Power Ventures Limited of India, Jointly with L&T

The boiler order was coordinated by L&T MHI Boilers Private Limited (LMBPL), a boiler manufacturing joint venture between MHI and Larsen & Toubro Limited (L&T). The steam turbine/generator (STG) order was coordinated by L&T, which outsources the set from L&T MHI Turbine Generators Private Limited (LMTGPL), a turbine manufacturing JV between MHI & L&T. L&T is a high-technology driven engineering and construction organization and one of the largest companies in India's private sector. LMBPL and LMTGPL, which were established in April and December 2007, respectively, operate under technology licensing from MHI.

Specifically MHI will supply core boiler components to LMBPL, and LMBPL will undertake boiler assembly – the first boiler to be produced by the company – for delivery to JPVL. For the STG sets, MHI and Mitsubishi Electric Corporation will manufacture and supply core components to LMTGPL, and LMTGPL will undertake assembly and delivery of the sets to L&T.

JPVL, is a power project implementing agency of Jaypee Group, an infrastructure conglomerate with annual turnover of USD 1.3 billion, and has a formidable presence in engineering & construction along with interests in power, cement, hospitality, real estate, expressways and education. JPVL is in the process of setting up this project in addition to other thermal and hydro projects and is poised to be 5,000 MW power entity by 2012.

Supercritical-pressure coal-fired power generation uses higher steam temperatures and pressures than subcritical-pressure power generation, and is more fuel-efficient and friendlier to the environment. By reducing coal consumption relative to power output, carbon dioxide (CO2) emissions can be reduced. However, supercritical type generation requires more sophisticated technology in equipment design to withstand the high temperature and pressure levels, and machining of high-strength component materials is more difficult. MHI has vast experience with these systems, having already delivered many units in Japan and abroad.

Thanks to the success of its economic deregulation policy introduced during the 1990's, India achieved over 9% economic growth for three straight years from fiscal 2005 through 2007. The country continues its strong growth despite the global economic crisis, maintaining a high growth rate of 6.7% in fiscal 2008. Along with economic development, India's gap between electricity supply and demand has become increasingly serious. To cope with this energy supply issue, many large-scale coal-fired power plant construction projects are under way in various regions of the country.

MHI has been responding to India's energy situation through its aforementioned local JVs and through aggressive marketing activities in the country together with L&T. On the momentum gained through receipt of the latest order, going forward MHI will further strengthen its activities to develop the market for highly efficient supercritical-pressure steam turbines and boilers in India, where many projects to construct thermal power generation plants are planned. In this way, the company looks to contribute to the global effort to combat environmental issues.

Note:
Supercritical turbines are engineered to operate at steam pressures above water's critical point: 22.1MPa (about 220 times greater than normal atmospheric pressure) and 374.2°C (705.2°F/647.15°K). Specifically, the turbine will be operated in the environment of about 250 atm.