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MHPS Receives Full Turnkey Order for Geothermal Power Generation Plant, 13th from Mexico

No. 022

Yokohama, October 29, 2014 -- Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has received a full turnkey order from Grupo Dragon through Geotérmica para el Desarrollo S.A.P.I de C.V. (GEODESA), one of its power generation companies in Mexico, to build a 25 MW (megawatt) geothermal power generation plant. The event represents the 13th geothermal power generation plant to be supplied by the company to Mexico. The new power plant is slated to go on-stream in 2016.

MHPS received the order through Mitsubishi Hitachi Power Systems de México, S.A. de C.V. (MHPS-MEX), a business base of MHPS in Mexico. The power plant, which is Mexico's first geothermal power generation project by a private company, will be built in Domo de San Pedro, Nayarit state in midwest Mexico. In the construction project, MHPS will be responsible for engineering, manufacture, procurement and installation of major components, including the steam turbine, and balance of plant (BOP), as well as civil engineering work and commissioning.

Grupo Dragon developed and also operates two wind power generation farms and currently develops photovoltaic farms as well as new geothermal projects along the country. The power produced at the newly ordered geothermal power plant will be supplied to different private companies, to support their business activities.

Mexico ranks fifth in the world in terms of geothermal resources, and to date MHPS has received the order of 12 geothermal power plants from two power stations (six plants each) of Mexico's Comisión Federal de Electricidad (CFE) until now. MHPS considers Mexico one of its most important markets, with MHPS supplying thermal and geothermal power generation systems equivalent to 40 percent of Mexico's installed capacity.

Geothermal power generation utilizes geothermal fluid, a mixture of high-temperature water and steam extracted from deep underground reservoirs through production wells. The steam extracted from the fluid is used to rotate steam turbines. As geothermal power generation is not affected by weather, unlike photovoltaic or wind power generation, the system is fully operable 24 hours/day, enabling a high capacity utilization ratio. In addition, geothermal power generation involves no fuel combustion, so it is a clean system emitting no CO2.

MHPS provides total solutions in all aspects of thermal and geothermal power generation systems availing of the comprehensive capabilities and products of Mitsubishi Heavy Industries and Hitachi in this field. In the area of geothermal power generation, MHPS has to date received orders for more than 100 units from 13 countries. The installed capacity of these units totals 3,000 MW, equal to approximately 30 percent of the world's installed capacity in geothermal power generation. Leveraging this strong track record and its technological expertise, going forward MHPS will continue aggressive marketing activities for its geothermal power generation systems as a way of contributing to efforts to prevent global warming.

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