MHPS Receives Order for Ultra-supercritical-pressure Boiler and FGD System for Cirebon Thermal Power Plant in Indonesia

Yokohama, November 24, 2015 -- Mitsubishi Hitachi Power Systems, Ltd. (MHPS) will provide an ultra-supercritical-pressure boiler and flue gas desulfurization (FGD) system for a 1,000 megawatt (MW) capacity expansion project at an existing coal-fired power generation plant in Cirebon, Indonesia. A consortium consists of MHPS, Toshiba Corporation and Hyundai Engineering & Construction Co., Ltd. (Hyundai E&C) has agreed with PT Cirebon Energi Prasarana (CEPR), the new plant's owner and operator, to provide EPC works for the expansion project. The boiler and FGD system to be supplied by MHPS will be the core components of a new large-scale high-efficiency power generation plant slated to commence operation in June 2020.

CEPR is a special-purpose company into which Japan's Marubeni Corporation and Chubu Electric Power Co., Inc. are investing. The companies investing into CEPR also include an Indonesian energy company PT Indika Energy Tbk and two Korean enterprises: Samtan Co., Ltd., a specialist in coal operations, and Korea Midland Power Co., Ltd., a power producer. The new 1,000 MW power generation plant will be built in Cirebon, West Java Province.

The 1,000 MW plant construction project is being carried out as an expansion program for an existing 660 MW coal-fired power generation IPP (independent power provider) project financially backed by Marubeni and its partners. Once the new plant commences operation, it will provide power to PT PLN (Persero), Indonesia's state-owned electricity utility, based on a long-term power purchase agreement. Together with the existing power plant, the new plant will serve to meet Indonesia's vigorous demand for power.

MHPS received the order for the construction of the new power generation facility together with Toshiba Corporation and Hyundai E&C. MHPS will be responsible mainly for the manufacture, supply and procurement of an ultra-supercritical-pressure boiler and a FGD system, and will also undertake commissioning. MHPS has the largest share in the world's FGD system (wet-type) in 2014. Toshiba will be in charge of the manufacture, supply, procurement and installation of the plant's steam turbine, generator, etc. Hyundai E&C will supply coal transport and ash processing facilities and peripheral equipment, as well as perform related civil engineering and installation work.

In Indonesia, demand for power is growing sharply in tandem with the country's rapid economic expansion. To meet this robust demand, the Indonesian government has set a target to increase power supply capacity by 35,000 MW over the next five years. The 1,000 MW capacity expansion program at Cirebon is the first large-scale project toward achievement of that target.

MHPS has a strong track record and has earned high trust from the global market in thermal power plants that achieve a high level of thermal efficiency while also enabling reductions in CO₂ emissions.

Going forward MHPS will continue to undertake aggressive marketing in a broad range of countries and regions where demand for coal-fired power generation systems is expected to increase, including Indonesia, as its way of contributing to both stable power supplies and reduction of environmental burdens.

• Under normal atmospheric pressure (1 atm), water boils at 100°C (212°F/373°K) and the temperature and pressure go no higher. When increased pressure is applied, however, the boiling point rises beyond 100°C; and if pressure is increased further and takes the water temperature to 374°C/22.12 megapascals (approx. 220 atm), water no longer boils but rather vaporizes. This is referred to as water's critical point. Supercritical pressure is defined as the state above critical point; and ultra-supercritical pressure refers to the state when water's temperature rises to 593°C. In recent years, owing to their enhanced power generation efficiency, demand has been increasing for supercritical-pressure and ultra-supercritical-pressure boilers and steam turbines.

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