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MHPS Begins Construction Work for Indonesia's Cirebon
Power Plant Expansion Project

No. 112

◆ MHPS to supply Pressure Boiler and Flue Gas Desulfurization system for 1GW coal-fired plant
◆ EPC contract concluded in 2015 for plant in West Java Province
◆ Commercial operations to start in 2022, enhancing Java-Bali power grid

YOKOHAMA, JAPAN (November 16, 2017) – Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has started construction work for the Cirebon Coal-Fired Power Plant Expansion Project in Indonesia. Construction will be carried out, on a full-turnkey basis, on the 1-gigawatt (GW) large-scale ultra-supercritical-pressure coal-fired power plant in West Java Province, in consortium with Toshiba Group and Hyundai Engineering & Construction Co., Ltd. Under the EPC (engineering, procurement, construction) contract, MHPS will supply the plant's ultra-supercritical-pressure boiler and flue gas desulfurization (FGD) system. The plant is scheduled to begin commercial operation in 2022.

The power plant is being built by PT Cirebon Energi Prasarana (CEPR), an entity collectively financed by Marubeni Corporation, JERA Co., Inc., PT Indika Energy Tbk, Samtan Co., Ltd., and Korea Midland Power Co. Ltd. CEPR concluded an EPC contract with MHPS and its consortium partners in 2015. The project will expand the 660-megawatt (MW) coal-fired IPP (independent power producer) business currently operated at the site by Marubeni. Once on-stream, the expanded plant will supply power to PT PLN (Persero), Indonesia's state-owned electricity utility, through a long-term power purchase agreement (PPA). Together with the existing plant, the new facility at Cirebon will help meet Indonesia' increasing energy demand.

In addition to manufacturing, supplying and procuring equipment, MHPS will also take charge of trial operations. MHPS currently has the largest share of the global market for wet-type FGD systems, thereby contributing to the reduction of environmental burdens.

MHPS has forged close ties with Indonesia over a period spanning nearly 50 years, starting with shipment of the first steam turbine to the Indonesian market in 1971. Today, the company continues to play a significant role in developing the country's power grid. The latest project will further contribute to the expansion of the Java-Bali power network, a key part of PLN's national power supply equipment plan.

MHPS has a proven track record in the field of coal-fired power generation with its high-efficiency systems for curbing CO2 emissions. The company will continue to proactively expand its business in Indonesia and other regions where demand for highly efficient coal-fired power generation systems is expected to grow.