MHI Receives Order for Two Sets of Gas Turbines and Generators for GTCC Power Generation Plant in Ontario

Tokyo, Nov 19, 2009 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) has received an order for two sets of gas turbines and generators (GTG) from North American energy infrastructure company TransCanada. The GTG sets on order will be core components of TransCanada's 900 megawatt (MW) gas turbine combined cycle (GTCC) power generation plant - the Oakville Generating Station (OGS) - to be built in Ontario. The GTG sets are slated for delivery in mid 2011. OGS is planned to be in-service by the end of 2013 and supplying electricity to the Ontario Power Authority (OPA).

MHI received the order through MPS Canada, Inc. MPS Canada, located in Ontario, is a Canadian subsidiary of Mitsubishi Power Systems Americas, Inc. (MPSA), a wholly owned U.S. subsidiary of MHI. The company handles MPSA's power generation equipment business in Canada.

The OGS, a natural gas-fired power plant which TransCanada will build, own and operate based on a 20-year clean energy supply contract with OPA, will be located in Oakville, a city situated approximately 30 kilometers southwest of Toronto on the shores of Lake Ontario. The new power plant will help OPA secure electricity supply and meet increasing energy demands in Southwest Greater Toronto Area (GTA) where the population and economy are rapidly expanding. As part of numerous measures taken to reduce greenhouse gas emissions and fight climate change, Ontario is set to eliminate coal-fired generation by the end of 2014. In line with this Ontario initiative, the OPA has been conducting a program to increase natural gas-fired GTCC power generation, replacing existing coal-fired plants.

In general, GTCC power generation plants consist primarily of gas turbine, steam turbine, heat recovery steam generator and generator. MHI will provide two M501GAC gas turbines and Mitsubishi Electric Corporation will supply two generators. The M501GAC gas turbine is an advanced model that adopts air-cooling to cool the combustor instead of the existing steam-cooling method. This Canadian order represents the first order for the M501GAC.

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 a 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 carbon dioxide (CO2), thus making them friendlier to the environment. Specifically, CO2 emissions generated by combustion turbines are considerably reduced, when compared with coal-fired power generation.

MHI has delivered numerous 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. On the strength of the latest order, going forward MHI intends to further strengthen its marketing activities of highly efficient GTCC power generation systems and gas turbines that contribute to efficient use of energy and reduction of environmental burdens.

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.

Source: Mitsubishi Heavy Industries

Contact:

Mitsubishi Heavy Industries

Hideo Ikuno

h.ikuno@daiya-pr.co.jp

+81-3-6716-5277

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