Tokyo, Feb 8, 2006 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) has received a full-turnkey order from Comision Federal de Electricidad (CFE), headquartered in Mexico City, for the construction of a supercritical-pressure coal-fired power plant*. The plant, to be installed at CFE's Pacifico power station, will become Mexico's first supercritical-pressure coal-fired power plant. It will have the capacity to generate 700 MW (megawatts) of electricity, making it one of that nation's largest power plants. Operation is scheduled to commence in February 2010.
The new plant will be located in the state of Guerrero, along the Pacific coast, next to the existing Petacalco power station. MHI will be responsible for the manufacture and installation of the boiler and steam turbine - the main plant components - as well as civil engineering work. Mitsubishi Electric Corporation will build the generator, and Techint of Italy will be in charge of procurement and construction of the coal handling and ash treatment systems. Mitsubishi Corporation will handle the trade particulars. To finance the project, an arrangement is being considered whereby export credit would be furnished by Japan Bank of International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).
Adjacent to the new plant on order, six coal-fired power plants - all either constructed or equipped by MHI - are already in operation at Petacalco with a total generation capacity of 2,100 MW. To date, MHI has delivered numerous power plants to CFE that today collectively provide more than 50% of its total power output, thus making Mexico one of MHI's most important markets worldwide.
The order for the new plant is the first major infrastructure construction project awarded to a Japanese company following the signing of the Agreement between Japan and the United Mexican State for the Strengthening of the Economic Partnership, which took effect in April 2005. In line with the Agreement, MHI will respond to Mexico's need for expanded power generation capacity to meet increasing electricity demand. It will also cooperate in enabling Mexico to diversify its energy sources, so as to ease the adverse impact of oil and natural gas price surges, while Mexico will continue to lower import tax rates.
Supercritical-pressure coal-fired power generation uses higher steam temperatures and pressures than subcritical generation, and is more fuel-efficient and friendlier to the environment. By reducing coal consumption relative to power output, carbon dioxide (CO2) emissions will be reduced by approximately 2.5%. 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, having developed proprietary technologies in those areas, has vast experience with these systems, having already delivered more than 40 plants in Japan and abroad.
Due to sharp increases in oil and natural gas prices, demand for supercritical-pressure coal-fired power generation is expected to increase globally in the coming years. MHI, riding on the strength of this latest order, aims to conduct vigorous plant marketing activities not only in Mexico but worldwide, especially in the U.S. and Southeast Asia.
*Note: Supercritical-pressure power plants are engineered to operate at steam pressures above the critical point of water: 22.12MPa and 374.15 C (705.5 F/647.3K).
About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (TSE: 7011, 'MHI'), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers. MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website at www.mhi.co.jp.
Contact:
Hideo Ikuno: h.ikuno@daiya-pr.co.jp
Tel: +813-6716-5277, Fax: +813-6716-5929
Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.)
Feb 8, 2006
Source: Mitsubishi Heavy Industries
Mitsubishi Heavy Industries (TSE: 7011) (U.S: MHVYF)
From the Japan Corporate News Network
http://www.japancorp.net
Topic: Contract Awarded
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