Mitsubishi Power to be integrated into MHI -- Strengthening Group Structure for Realization of Carbon Neutral Society --

Tokyo, May 10, 2021 – Mitsubishi Heavy Industries, Ltd. (MHI) and Mitsubishi Power, Ltd. have agreed to integrate the business operations of Mitsubishi Power with those of MHI, effective October 1, 2021, with some aspects already underway. The diverse businesses currently operated by Mitsubishi Power will be integrated into MHI under an absorption-type split arrangement to further accelerate the “Energy Transition” that serves as MHI Group’s growth engine.

The integration initiative enables the resources from both units to be dynamically managed in order to effectively advance both the decarbonization of the existing thermal power systems driven by Mitsubishi Power, and the development of the ecosystem of hydrogen and CO₂, promoted by MHI. The two companies’ corporate functions will be fully integrated, in order to improve efficiency in business administration.

In its 2021 Medium-Term Business Plan released in October 2020, MHI Group announced plans to substantially increase its corporate value by 2030 with "Energy Transition" and "New Mobility & Logistics" serving as the Company's growth engines. In the "Energy Transition" area, the Company is promoting decarbonization of fuels currently used in the power generation and industrial fields. In addition, MHI Group is driving the development of start-up technologies, such as carbon free fuel, including hydrogen and ammonia, and launching various studies and demonstration tests in regions around the world. As the first step in shifting resources in those directions, in April 2021 Mitsubishi Power's new business development segment was transferred to and integrated with MHI. The move unified groupwide initiatives pertaining to "Energy Transition".

Mitsubishi Power was launched in February 2014 as Mitsubishi Hitachi Power Systems, Ltd. (MHPS), a company integrating and consolidating the thermal power generation system operations of MHI and Hitachi, Ltd. In September 2020, its corporate name was changed following the entity's conversion to a wholly-owned subsidiary of MHI. As a comprehensive energy solutions provider, Mitsubishi Power currently conducts business relating to decarbonization of energy resources and the stable provision of electric power. It offers customers world-class technologies, primarily focused on achieving the highly efficient operation of power generation facilities as a prelude to decarbonizing thermal power production and promoting the use of carbon free hydrogen and ammonia.

Through this integration, MHI Group will take a significant step to further contribute to promoting effective use of resources and reducing environmental impact, while continuing to strive toward the ultimate goal of achieving carbon neutrality.