Tokyo, November 17, 2004 -- Mitsubishi Heavy Industries, Ltd. (MHI), has successively received two orders from China for large-scale desulfurization (FGD) systems. The two orders, each involving two FGD systems, were placed by China Power Investment Corporation Yuanda Environmental Protection Engineering Co., Ltd. (CPI Yuanda) and SINOFINN Electric Engineering Corp. (SINOFINN). The deliveries are slated for October and September 2006, respectively. With these two orders, the total number of orders received by MHI from China reaches 10, including four this year alone, making the company the top supplier to China among Japanese FGD producers. For both orders, MHI will provide basic design package, supply the absorber internals as key components of the system, and dispatch technical supervisor to the construction site.
The two FGD systems ordered by CPI Yuanda will be installed at the Xinxiang power station in Henan province, where the No.5 and No.6 power generation units, 300 MW (megawatts) each, are currently under construction. The systems will be used to remove SO2 (sulfur dioxide) from the flue gas - 2,250,000 Nm3 (1,125,000 Nm3 x 2: normal cubic meters) per hour - emitted by their two coal-fired boilers. The FGD systems for SINOFINN will treat 2,320,000 Nm3 (1,160,000 Nm3 x 2) of flue gas from two 300 MW coal-fired boilers, the No. 1 and 2 units of the Penglai plant under construction in Shandong province. All of these FGD systems will achieve 95% desulfurization efficiency, applying MHI's proprietary Double Contact Flow Scrubber (DCFS) technology.
In the DCFS system, limewater, a liquid absorbent slurry, 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 ensuring outstanding desulfurization efficiency, DCFS facilitates user convenience through its simpler configuration permitting easy maintenance. The high evaluation accorded to DCFS technology, and to MHI's proven record in FGD operation in Japan and globally, resulted in the award of the two new contracts.
The order for the Xinxiang plant is the third collaboration project with CPI Yuanda through license agreement for Mitsubishi FGD system concluded in December 2000. MHI concluded a similar agreement with SINOFINN in February of this year, and the new order represents its first outcome.
In tandem with its remarkable economic growth, today China is either newly constructing or expanding its power generation facilities. Although currently approximately 70% of all electricity is generated by coal-fired power plants, the country is moving toward enforcement of stricter environmental protection regulations. Going forward, FGD units for removing SO2 from flue gas will be required at all newly built power plants, including those in inland areas that have until now been exempted from such regulations. In line with this move, China's demand for FGD systems is increasing significantly. In recognition of this trend and on the strength of the latest orders, MHI, together with its local partner companies, aims to continue aggressive development of China's FGD market.