Spain's Initec Energia Awards Mitsubishi Heavy Industries CCGT Power Plant System Contract in Uzbekistan

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Researched by Industrial Info Resources (Sugar Land, Texas)--Initec Energia SA (Madrid, Spain), part of the ACS Group (Madrid, Spain), has awarded the contract for the construction of a 478-megawatt (MW) combined-cycle natural-gas turbine (CCGT) power plant system in Uzbekistan to Mitsubishi Heavy Industries Limited (TYO:7011) (MHI) (Tokyo, Japan).

The system will be constructed at the site of the Navoi thermal power plant. The contract represents MHI's first venture into Uzbekistan. Under the terms of the contract, MHI will supply one M701F gas turbine and one steam turbine by December 2010. The plant is scheduled to be completed by March 2011.

The overall construction responsibility of the system lies with Initec. A heat-recovery steam generator and two other generators will be supplied by Mitsubishi Electric Corporation (TYO:6503) (MEC) (Tokyo). Civil engineering works at the plant will be carried out by Turkish construction company Calik Enerji Sanayi ve Ticaret AS (Ankara, Turkey), which will also perform the installation. Mitsubishi Corporation (OTC:MSBHY) (Tokyo) will handle trade particulars.

Uzbekistan has experienced an economic growth rate of 7% to 9% since 2004. The International Monetary Fund forecasts 7% growth for the country in 2010. This relatively high growth rate has caused the government to prioritize the stability of the electrical supply and use the country's natural gas more efficiently. As part of this effort, Uzbekistan has begun a power-plant modernization program, which includes the installation of CCGT systems in older power and heat generating plants. The new plant in Navoi is a part of this initiative.

Navoi province in southwestern Uzbekistan is at one of the country's most important industrial centers. The region has enjoyed a resource-boom in recent months, driven by the production of natural resources such as oil, precious minerals and natural gas. The region is also home to manufacturing industries including, chemical and fertilizer plants.

Under a CCGT system, the natural gas feed is first used to drive a gas turbine to produce electricity. The exhaust heat from this process is then used to generate steam, which in turn drives a steam turbine to provide additional electricity. Finally, the heat from the exhaust steam is used to provide heat energy in the form of hot water. The new system in Navoi will provide a stable electricity supply and hot water to the Navoi Free Industrial Economic Zone, allowing the region to continue to develop.

MHI has supplied several CCGT systems in Japan and abroad, although this is the first such order the company has received in the past 10 months. The order is thought to be worth between $224 million and $336 million. MHI hopes that this order for Uzbekistan will lead to further orders in the country.

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