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MHI Receives Order for Blast-Furnace-Gas Fired GTCC Power Plant From Industrial Union of Donbass, Ukraine.

Tokyo, Japan, May 25, 2006 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. ("MHI";TSE: 7011) has received an order through Sumitomo Corporation for two blast-furnace-gas (BFG) fired gas turbine combined-cycle (GTCC*) power generation units for Alchevsk Iron and Steel Works, an affiliate of Industrial Union of Donbass Corp. (IUD) of Ukraine. The new units are scheduled to go on-stream in March and September 2009, respectively. The order marks MHI's first large-size power generation system order received from Ukraine.

The GTCC plant order calls for delivery of two 150 MW (megawatt) units, for a total output of 300 MW. Each unit will consist of an M701S (DA) gas turbine, a steam turbine and a generator. The gas and steam turbines will be manufactured by MHI and Mitsubishi Electric Corporation will build the generators.

Alchevsk Iron and Steel Works' decision to adopt a GTCC plant came in response to environmental restrictions spreading from Europe, soaring prices of natural gas supplied from Russia, and the need to boost the price competitiveness of its steel products through more efficient energy usage. The exhaust gas from Alchevsk's blast furnaces will be used to meet part of its own electricity needs. In the future, Alchevsk has plans to expand its electricity capacity and sell electricity to the grid.

IUD is a holding company embracing more than 40 companies both within and outside Ukraine. Holdings include enterprises engaged in processing and trading of ferrous metals, production and construction of gas pipelines, distribution of natural gas, engineering for heavy industries, and agricultural development. Alchevsk's principal activity is production of cast iron, steel and metal products, and as such the company is a core contributor to growth of Ukraine's export-led economy. The company, located in Donetsk city and employing more than 20,000 workers, was established in 1896 as a state-owned enterprise; later it became an affiliate member of the IUD group.

Because BFG has a lower calorie rating than natural gas, stable combustion of BFG-fired gas turbines requires sophisticated technology. MHI independently established its BFG GTCC power generation technology in the 1980s, including development of BFG dedicated combustors. Since then, the company has delivered numerous systems to iron and steel manufacturers at home and abroad, enjoying a near 70% share of the world's BFG gas turbine market. This technological lead and track record have been highly acclaimed by customers, and contributed heavily to MHI's winning of new orders.

Riding on the wind of the latest order, going forward MHI intends to further strengthen its marketing activities for BFG GTCC plants, in a quest to contribute to more effective utilization of energy and reduction of environmental burdens around the world.

Note: With GTCC type power generation, gas and steam turbines are used in combination to generate electricity in two stages. In the first stage the gas turbine generates electricity; and in the second stage steam produced by high-temperature exhausts from the gas turbine drives the steam turbine, again producing electricity. This dual configuration enables GTCC power plants to achieve higher thermal efficiency than non-GTCC plants. Higher efficiency means that GTCC plants require less fuel relative to electricity output and emit less CO2, thus making them more environmentally friendly.

About Mitsubishi Heavy Industries, Ltd

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, with consolidated sales of 2,792 billion yen in fiscal 2005 (year ended March 31, 2006). MHI's diverse lineup of products and services encompasses shipbuilding, steel structures, power plants, chemical plants, environmental equipment, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website (http://www.mhi.co.jp).

Source: Mitsubishi Heavy Industries, Ltd

Contact:
Hideo Ikuno
Daiya PR
Tel: +813-6716-5277
Fax: +813-6716-5929
e-mail: h.ikuno@daiya-pr.co.jp


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Publication:JCN Newswires
Geographic Code:9JAPA
Date:May 25, 2006
Words:650
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