MHI Receives Order for GTCC Power Generation Systems for Spain, Including Long-term Maintenance Service.

Tokyo, Japan, Sept 12, 2006 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) has received an order for three sets of LNG-fired gas turbine combined-cycle (GTCC) power generation systems, 1,350 MW in total, for Morata Energia S.L. of Spain. Morata Energia is a special purpose company (SPC) established by Electrabel S.A. of Belgium.

The GTCC power generation systems on order will be installed at a power plant Morata Energia is constructing in Morata de Tajuna, approximately 50 kilometers south of Madrid. In addition to the supply of the GTCC equipment, MHI also signed a long-term service agreement on plant maintenance. The power plant is scheduled to go on-stream in December 2009.

Madrid, the Spanish capital, has conventionally relied heavily on outlying regions for its electricity supplies. In tandem with the upturn in the country's economic growth, construction of a power plant near Madrid has become a matter of urgency.

The new 1,350 MW power plant will consist of three 450 MW (megawatt) GTCC power generation systems, each incorporating an M701G gas turbine, steam turbine, generator, heat recovery steam generator and air-cooled steam condenser. The M701G gas turbine is one of the most efficient and largest-capacity gas turbines in the world, and it enables extremely high temperatures at the turbine inlet of up to 1,500 degrees celcius (2,732 degreees farenheit). The order, awarded as a result of the customer's high evaluation of MHI's technological expertise and proven manufacturing record in Japan, marks MHI's first M701G supply to an overseas user.

MHI will be responsible for manufacture of the gas and steam turbines, the core equipment of the GTCC power plant, and procurement of other major equipment. Mitsubishi Electric  Corporation will supply the generators. INITEC TECHNOLOGIA S.A., a Spanish engineering company, will conduct civil and installation work at the site and procure other auxiliary machinery for the plant. Mitsubishi Corporation  will handle the trade particulars.

Electrabel is one of the Suez Group companies of France; it provides a wide variety of energy, water and engineering services, mainly in Europe. Earlier, in 2003 MHI received an order from Electrabel to supply equipment for the 800 MW Castelnou GTCC power plant in Spain, together with a long-term plant maintenance contract. MHI also has received GTCC power generation system orders for the 400 MW Cristobal Colon power plant of Endesa, S.A., Spain's largest electricity supplier, and for the 1,200 MW Cartagena power plant of AES Corporation of the U.S. The latest order marks the 9th large capacity gas turbine to be supplied by MHI to Spain.

With GTCC type power generation, gas and steam turbines are used in combination to generate electricity in two stages, utilizing high-temperature exhaust gas from the gas turbine. This configuration enables GTCC power plants to achieve higher thermal efficiency than non-GTCC plants such as conventional boiler steam turbine plants. Higher efficiency means that GTCC plants reduce fuel consumption relative to electricity output and emit less CO2, thus making them more environmentally friendly.

MHI has delivered many GTCC power generation systems in Japan and abroad, and in the process has gained widespread trust in the market for its proprietary technologies and prompt delivery record. Given today's dual needs to reduce fuel costs to counter surging gas prices and to emit less CO2 into the atmosphere, going forward MHI intends to aggressively market its G-type gas turbines, among the world's most efficient and highest-capacity gas turbines used for power generation.

About Mitsubishi Heavy Industries, Ltd.

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.

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