MHI Successively Receives European Order for Large-scale FGD Systems from Endesa, Spain, Following Two Separate Italian Orders from Enel and Endesa Italia.

Tokyo, Japan, Jan 31, 2006 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI), Mitsubishi Corporation , and Duro Felguera, S.A., a Spanish heavy machinery manufacturer, have jointly received a full-turnkey order from Endesa, S.A., Spain's largest electricity provider, for construction of two large-scale flue gas desulfurization (FGD) systems. The systems on order will be retrofitted to the No. 4 and 5 coal-fired power generation units at Endesa's Compostilla power generation plant in the north of the country. The order brings the number of FDG systems ordered by Endesa S.A. to five units.

A verification plant of FGD system

The order from Endesa, S.A. follows two separate Italian orders, from Enel SpA in last summer and Endesa Italia in late last year. The three FGD systems ordered by Enel, the largest utility company in Italy, will be installed to three coal-fired power generation units, 660 MW (megawatts) each, at Enel's Torrevaldaliga Nord power plant. The order from Endesa Italia calls for provision of two FGD systems for the company's two coal-fired power generation units (157 MW and 161 MW) at Monfalcone power plants.

With installation of the FGD systems, Endesa, S.A. aims to cope with new EU standards for flue gas that will go into force from 2008. The two FGD systems will be used to remove SO2 (sulfur dioxide) from the flue gas - 2,780,000 Nm3 (1,390,000 Nm3 x 2) per hour - emitted from two 359 MW coal-fired boilers. The desulfurization ratio will be approximately 95%. Under the full-turnkey contract, which includes civil engineering work, MHI will be responsible for the basic design and supply of major system components. Duro Felguera will perform civil engineering and installation work as well as supply the peripheral equipment. Mitsubishi Corporation is to handle the trade particulars for the system orders.

MHI's FGD systems feature the company's proprietary Double Contact Flow Scrubber (DCFS)* technology. MHI has made improvements to the DCFS while inheriting its basic structure, including enhanced contact between flue gas and absorbent. The high evaluation accorded to MHI's FGD systems and the company's record of completed orders resulted in the award of the latest order. Especially, the proven operational record of MHI's FGD systems delivered to Endesa's Teruel power plant (units 1, 2 and 3) in Spain contributed significantly to the award decision.

Amid the enforcement of stricter environmental protection regulations worldwide, tighter SO2 emission control standards are currently being sought in the EU, in addition to the US and China. At the same time, the global FGD market is expanding greatly, resulting in a sharp increase in demands for higher desulfurization capacity. In recognition of this trend and on the strength of the latest orders, MHI will continue aggressive marketing of its FGD systems globally as it probes further system refinements.

Notes: In the DCFS system, limestone slurry, a liquid absorbent, is evenly distributed throughout the absorber from spray nozzles installed at the bottom, in contrast to conventional systems in which slurry is sprayed from the top. As a result the slurry contacts with the flue gas twice, first when sprayed upward and second upon its descent. In addition to outstanding desulfurization efficiency, it further facilitates user convenience through its simpler configuration permitting easy maintenance.

About Mitsubishi Heavy Industries, Ltd

Mitsubishi Heavy Industries, Ltd. (MHI; TSE: 7011), headquartered in Tokyo, Japan, is one of the world's leading global heavy machinery manufacturers, with consolidated sales of 2,373 billion yen in fiscal 2003 (year ended March 31, 2004). MHI's diverse lineup of products and services encompasses shipbuilding, steel structures, power plants, chemical plants, steel plants, environmental equipment, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.

Source: Mitsubishi Heavy Industries, Ltd

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Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.)

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