MHIENG Awarded Contract for a FEED Study Relating to CO₂ Capture for Gas Turbine Power Plants in Alberta, Canada -- MHIENG Proprietary CO₂ Capture Technology Crucial in Reducing Greenhouse Gas Emissions --

Tokyo, July 11, 2022 – Mitsubishi Heavy Industries Engineering, Ltd. (MHIENG), part of Mitsubishi Heavy Industries (MHI) Group, awarded a Front End Engineering Design (FEED) study of a CO₂ capture plant applied to natural gas fired gas turbines for a repowered combined cycle (GTCC) power plant in Alberta, Canada from Capital Power Corporation (“Capital Power”) (TSX:CPX), a power generation company based in Canada. MHIENG has achieved the world’s top share of the market with its CO₂ capture technology and has received high praise for its performance and expertise in this area.

The objective of this FEED study is to implement the CO₂ capture plant at the repowered Genesee Generating Station Units 1 & 2, owned by Capital Power in Alberta. MHIENG’s “Advanced KM CDR Process™” will be deployed at these stations. The total expected amount of captured CO₂ will be approximately 3 million tonnes per year. The captured CO₂ will be transported and sequestered underground. For the execution of the FEED study, MHIENG partnered with Kiewit Energy Group Inc. (“Kiewit”), a major North American construction and engineering company and both companies will work together with Capital Power for realization of the Carbon dioxide Capture and Storage (CCS) project.

Capital Power is moving forward with repowering, deploying the GTCC system with MHI gas turbine toward the reduction of greenhouse gas emissions through the company’s fuel conversion from coal to natural gas. Operation with this system is scheduled in 2023 and 2024 at Generating Station 1 and 2 respectively. The entire MHI Group will collaborate together to support customer’s decarbonization strategy through the overall optimization between power generation facilities and CO₂ capture system.

“We are excited to collaborate with MHI Group and Kiewit to advance our Genesee CCS Project,” said Steve Owens, SVP, Construction and Engineering for Capital Power. “The Project is expected to capture 95% of the CO₂ emitted from our repowered, best-in-class Genesee 1 and 2 natural gas units. Undertaking this FEED study is a significant step forward in decarbonizing our Genesee Generating Station as we work to power a sustainable future for people and planet.”

“The Genesee CCS Project highlights Capital Power’s commitment to the energy transition, and we are excited to be a part of this important work,” said Rob Medley, Vice President at Kiewit. “The Project will have a tremendous impact on the decarbonization of the facility and advance the CCS industry as a whole.”

“We are proud to collaborate with Capital Power and Kiewit on this world leading project,” said Kenji Terasawa, President & CEO, Mitsubishi Heavy Industries Engineering. “We recognize Canada as highly proactive in pursuing environmental protection and is a promising market for decarbonization, and as an innovative solution provider, MHI Group is taking action to achieve a carbon neutral society by introducing our carbon capture technology. To realize this goal, we will work diligently with our partners to bring this project to fruition.”

Canada, like other global markets including the U.K., Europe and the U.S., is actively promoting the deployment of Carbon dioxide Capture, Utilization and Storage (CCUS), including through policy and institutional frameworks. Business discussions regarding CO₂ capture project have become increasingly active. In May 2022, MHIENG established a branch office in Canada for decarbonization business, enabling it to provide with swift response to customer needs. With our new organization, MHIENG will respond quickly to local market trends for CCUS business using its strong expertise and expand its business in Canada.

MHI Group is currently strengthening its position in the Energy Transition, and the development of a CO₂ solutions ecosystem is a core component of that initiative. CCUS is garnering attention as an effective means for realizing a carbon neutral society. MHIENG, as a leading company in decarbonization and key to the group’s strategy regarding Energy Transition, will continue to help achieve wide-scale greenhouse gas emission reduction by introducing its high-performance CO₂ capture technology globally. It will also press ahead in developing new solutions to contribute to global environment protection.

About Capital Power
Capital Power is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. We build, own and operate high-quality, utility-scale generation facilities that include renewables and thermal. We have also made significant investments in carbon capture and utilization to reduce carbon impacts and are committed to be off coal in 2023. Capital Power owns approximately 6,600 MW of power generation capacity at 27 facilities across North America. Projects in advanced development include approximately 385 MW of owned renewable generation capacity in North Carolina and Alberta and 512 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2 in Alberta.

About Kiewit
Kiewit is one of North America’s largest and most respected construction and engineering organizations. With its roots dating back to 1884, the employee-owned organization operates through a network of subsidiaries in the United States, Canada, and Mexico. Kiewit offers construction and engineering services in a variety of markets including transportation; oil, gas and chemical; power; building; water/wastewater; industrial; and mining. Kiewit had 2021 revenues of $12.1 billion and employs 28,800 staff and craft employees.

About MHIENG CO₂ capture technology
MHIENG (originally MHI) has been developing the KM CDR Process™ (Kansai Mitsubishi Carbon Dioxide Recovery Process) and the Advanced KM CDR Process™ in collaboration with Kansai Electric Power since 1990. Today MHIENG stands as a global leader in this field. As of July 2022, the KM CDR Process™ has been adopted at 14 plants worldwide, and two more are currently under construction. The Advanced KM CDR Process™, selected for the current project for Capital Power Corporation, uses KS-21™, which is an improvement over amine absorber KS-1™ in use at all 14 adopted commercial CO₂ capture plants to date. It has the benefits of excellent regeneration efficiency and low deterioration when compared to KS-1™, and has been verified to provide excellent energy saving performance, reduce operation costs, and have low amine emissions.

For further information on MHIENG’s CO₂ capture plants:

• https://www.mhi.com/products/engineering/co2plants.html