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2012.03.22.
Marubeni Awarded Orders for Three Combined Cycle Power Plant Projects in Korea

Marubeni Corporation (“Marubeni”), in partnership with Mitsubishi Heavy Industries, Ltd. (MHI), has been jointly awarded orders for three large-scale combined cycle electric power projects in Korea; the 2nd Pyeongtaek Combined Cycle Power Plant, the Dongducheon Combined Cycle Power Plant and the Ulsan 4 Combined Cycle Power Plant. They will have a collective power generation capacity of around 3,800MW.

The 2nd Pyeongtaek power plant will have generation capacity of nearly 950 MW and is being built in Gyeonggi-do by Korea Western Power Co., Ltd. (KOWEPO), a subsidiary of Korea Electric Power Corporation (KEPCO). Marubeni has received an order, jointly with MHI, for two M501J (J-Series) gas turbines(*), one steam turbine and generators for the plant.

For the near 1,900 MW Dongducheon power plant, Marubeni received an order, also jointly with MHI, consisting of four J-Series gas turbines, two steam turbines and generators. Dongducheon Dream Power Co., Ltd., an IPP jointly established by KOWEPO, Samsung C&T Corporation and Hyundai Development Company, is building the plant in Gyeonggi-do. Marubeni and MHI will deliver the core components to Samsung C&T and Hyundai Development.

For the near 950 MW Ulsan 4 power plant, operated by the Korea East-West Power Company (EWP), a subsidiary of KEPCO, in Ulsan Metropolitan City, Marubeni received an order jointly with MHI and Daelim Industrial Co, Ltd. for engineering, procurement, delivery of the equipment, including two J-Series gas turbines, a steam turbine and generators, and the construction and installation work, on a full turn-key basis.

In these projects, Marubeni believes that the extensive experience of Marubeni and MHI, combined with technical reliability as well as the high thermal and economic efficiency of the equipment, are highly appreciated by the Korean power sector and led to the successful receipt of these orders.

Previously, in 2010, Marubeni and MHI jointly received an order for two sets of steam turbines and generators, 1,000MW each, for ultra-super-critical-pressure coal-fired power generation units for unit #9 and #10 of EWP’s Dang Jin Coal Fired Power Plant. These new orders are the first received from the Korean power sector since then.

The Korean power sector has shown steady growth with many new and large scale projects under planning and development. Marubeni, with its strong presence in the market, intends to actively pursue further opportunities in various power plant projects together with MHI.


(*) The M501J Gas Turbine is a 60 hertz J-Series gas turbine developed by MHI, incorporating proprietary technologies. This new turbine is able to withstand temperatures 100 degrees higher than the 1,500°C-class G-Series gas turbine, which was the top-of-the-line until now. This gas turbine achieves a rated power output of about 327MW and an unprecedented 470MW in gas turbine combined-cycle (GTCC) output (1 gas turbine - 1 heat recovery steam generator - 1 steam turbine combination). This gas turbine has also achieved over 60% in gross thermal efficiency, the world's highest level in GTCC applications. The M501J gas turbine will significantly contribute to easing environmental burdens, as its GTCC power generation will be able to achieve CO2 emissions approximately 50% lower than with conventional coal-fired power generation.

2012.03.19.
Marubeni Acquires UK Offshore Wind Power Construction Firm

Marubeni Corporation (Marubeni) and Innovation Network Corporation of Japan (INCJ) have entered into an agreement with Riverstone Holdings LLC, a US investment fund, for full acquisition of Riverstone’s wholly owned subsidiary company, Seajacks International Ltd. (Seajacks), a UK based offshore wind power service provider. Marubeni and INCJ are investing on a 50/50 share basis.

This acquisition marks the first full scale entry by a Japanese enterprise into the offshore wind power installation business utilizing special turbine installation vessels (TIV). This market is expected to grow rapidly.

Seajacks is a leading company in the offshore turbine and platform service industry, and has been providing efficient services with its one of a kind TIV (Turbine Installation Vessels) to offshore wind farms as well as oil and gas platforms predominantly in the North Sea.

In Europe, where renewable energy is already recognized as core source of power receiving strong support from the governments of countries in the EU, offshore wind power is growing at fast pace. New offshore wind power construction of 40,000MW, which corresponds to 40 nuclear power plants, is planned in the next decade alone. Seajacks is committed to catering to the increasing demand for installation services of new wind power turbines and platforms as well as the emerging demand for operation and maintenance services for existing installations.

With experience and know-how gained through a track record of 96,000MW of electric power engineering, procurement and construction (EPC) work, and operation and maintenance services as an independent power producer (IPP) with net generation assets of 8,700MW, Marubeni intends apply its skills to the offshore wind service provider business.

Since last November, Marubeni has taken an equity stake in the 172MW Gunfleet Sand (UK) offshore wind farm and intends to extend its presence in the value chain for offshore wind power with the addition of Seajacks. At the same time, Marubeni is viewing other promising areas for offshore wind power as potential targets including North America, Japan and Asia.


About Seajacks International, Ltd
Founded : 2006
Location : Great Yarmouth, Norfolk, UK
President : Blair William Anslie
Web : www.seajacks.com
Business Outline : Offshore wind power installation services and offshore services for
oil and gas platforms

About INCJ
Founded : July, 2009
President : Kimikazu Noumi
Web : www.incj.co.jp/english/

2011.12.20.
Marubeni and Toshiba Win FTK Order for Indonesia's Patuha Unit 1 Geothermal Power Plant

TOKYO - Marubeni Corporation (Tokyo: 8002) and Toshiba Corporation (Tokyo: 6502) today announced that they will cooperate in the construction of the Patuha Unit 1 project, a 55MW geothermal power plant in West Java, Indonesia. Marubeni will act as a main contractor and oversee management of the project under a full turnkey contract from PT Geo Dipa Energi, the plant owner and operator, and Toshiba will supply the plant’s essential equipment: the steam turbine and generator and key auxiliary and management equipment.

Geothermal energy is a renewable energy source that uses naturally occurring subterranean heat sources to produce steam and generate electricity, with much fewer emissions of carbon dioxide than the other thermal power generation. Unlike some renewable energy sources, such as wind and solar power generation, geothermal energy is not weather dependent, and is able to generate stable output that contributes to secure energy supply. Today, geothermal power plants around the world have a combined generating capacity of over 10,000MW.

Indonesia is recognized as having the world's largest geothermal resources, with a potential generating capacity of 28,000MW, although the installed capacity to date is little over 1,100MW. As economic growth drives rising demand and produces shortage in energy supply, the Indonesian Government is promoting geothermal power projects to raise generating capacity and reduce reliance on petroleum, where demand outstripped local production in 2004. The government’s plans include IPP projects with a capacity of 10,000MW by 2025, which the Japanese government is supporting through its yen loan program.

Patuha Unit 1 project is a full turnkey contract for a 55MW geothermal power plant in the suburbs of Bandung, the capital of West Java province and, with a population of over 7.5 million, Indonesia’s third largest city. The plant is scheduled to start commercial operation in spring 2014 (Toshiba expects to start equipment delivery in summer 2013) with Marubeni’s and Toshiba’s best performance. The project is financed by Indonesia’s state-owned PT. Bank Negara Indonesia (Persero) Tbk.

Marubeni’s rich experience of power plant project management in Indonesia, and the quality and performance of Toshiba’s geothermal steam turbines and generators, plus a record of success in supplying power generating equipment in the Indonesian market, were key factors in the selection process.

Marubeni has extensive experience in the Indonesian power supply market. Projects managed by Marubeni include the Suralaya coal-fired thermal power plant, Indonesia’s largest thermal power plant; the Muara Tawar combined cycle thermal power plant; and the Tanjung Priok combined thermal power plant. Marubeni has overseen the construction of approximately 6,000MW of generating capacity in all, a 20% share of the total capacity of plants operated by PT. PLN, Indonesia’s state-run electricity utility.

Marubeni also owns two large-sized coal-fired power plants and is also promoting development of geothermal power plants proactively.

Toshiba is an industry leader in power generation equipment, with world-class capabilities in nuclear, thermal and renewable power generation equipment. Toshiba entered the geothermal power business in 1966 with the supply of a steam turbine and generator to the Matsukawa geothermal power plant, Japan’s first geothermal plant, and subsequently expanded the business to North America, Southeast Asia and Iceland. Toshiba is today the world leader in the manufacture of steam turbines and generators, with a market share of 24%*1, and has supplied a total of 52 units with an installed capacity of 2,800MW. This year, on the strength of its technological capabilities, Toshiba has won three major orders for steam turbines and generators for geothermal power plants, including a contract in March from New Zealand’s Te Mihi geothermal power plant.

Toshiba is also highly familiar with the Indonesian market, where it is a market leader in equipment supply. The company’s record to date includes supply of 12 steam turbines and generators (4,200MW combined capacity) for four thermal power plants, including the Tanjung Jati B coal-fired thermal power plant now under construction, and 26 hydroelectric turbines and generators (1,500MW) for eleven hydroelectric power plants.

Going forward, Marubeni and Toshiba will seek to contribute to the expansion of electric power supply in Indonesia, including continued participation in projects to promote lower emissions of carbon dioxide and environmentally friendly geothermal power and other renewable energy projects. The companies propose to work together on a number of geothermal projects now at the planning stage, including the following.

•Lumut Balai Unit 1& 2 and 3& 4 (yen-loan financed project)
•Ulubelu Unit 3 & 4 (World Bank loan-financed project)
•Lahendong Unit 5 & 6 (World Bank loan-financed project)
•Rantau Dedap Unit 1 & 2 (Marubeni’s promoting IPP project)

2011.06.20.
Marubeni Awarded Two Combined Cycle Power Plant Projects in Thailand

Marubeni Corporation (“Marubeni”), in partnership with Siemens Aktiengesellschaft, Germany and Siemens Limited, Thailand (“Siemens Group”), has jointly received Letter of Intent for awarding two projects simultaneously from the Electricity Generating Authority of Thailand (EGAT for the construction of Chana Combined Cycle Power Plant Block 2 and Wang Noi Combined Cycle Power Plant Block 4.

The total power generation capacity of these two power plants is approximately 1,600MW, and the EPC contracts will be worth around one billion US Dollars (around 83 billion Japanese Yen). Marubeni's highly-reputable presence in the market, together with the Siemens Group's superior technology resulted in a most competitive bid which led to the unprecedented double award of these two major projects.

Following the Chana Combined Cycle Power Plant Block 1 in 2005 and Bang Pakong Combined Cycle Power Plant Block 5 in 2006, with the award of these two projects Marubeni and Siemens Group have succeeded in a total of 4 out of the 6 large combined cycle power plant projects developed by EGAT after the economic crisis in the late nineties. Marubeni's total installed capacity in Thailand is now approximately 7,000MW, representing about 25 percent of the country's total installed capacity.

The two projects are located in Chana district, Songkhla province, southern part of Thailand, and Wang Noi district, Ayutthaya province, in the northern suburbs of Bangkok, respectively. The plants boast high-efficiency and designed according to strict environmental standards. The scope of Marubeni and Siemens Group for these projects is Full Turn-Key including engineering, procurement, construction and commissioning. Main equipment such as gas turbines, steam turbines and generators will be supplied by the Siemens Group, while Marubeni is in charge of the heat recovery steam generators, balance of plant equipment and civil/installation works.

The Thailand power sector shows steady growth where several new and large scale projects are under planning and development. Marubeni, with its strong presence in the market, intends to actively pursue further opportunities in various power plant projects.

Note: EGAT, while planning to further enhance its generation capacity starting with these two projects in view of the country's healthy economic growth and increase of energy demands of more than 4%/annum, is also supporting Japan's recovery efforts from the recent earthquake and tsunami disaster by immediately agreeing to lend two gas turbine generating facilities.


Summary of Chana Combined Cycle Power Plant Block 2


Project Name: Chana Combined Cycle Power Plant Block 2 Project
Client: Electricity Generating Authority of Thailand (EGAT)
Fund: EGAT’s own fund
Type of Power Plant: Gas-fired Combined Cycle, 782MW (1-1-1 x 2 trains**)
** (Gas Turbine Generator× 1 + Heat Recovery Steam Generator× 1 + Steam Turbine Generator×1)
x 2 trains
Planned Site: At existing Chana Power Plant, Chana District, Songkhla Province, approx 1,000km
south of Bangkok (Capacity of the existing power plant at Chana Power Plant is one unit of 730MW,
combined cycle power plant supplied by Marubeni/Siemens).
Partner: Siemens Aktiengesellschaft, Germany and Siemens Limited, Thailand
Contract Price: Approximately 43.5 billion Japanese Yen (20 billion Japanese Yen for Marubeni portion)


Summary of Wang Noi Combined Cycle Power Plant Block 4


Project Name: Wang Noi Combined Cycle Power Plant Block 4 Project
Client: Electricity Generating Authority of Thailand (EGAT)
Fund: EGAT’s own fund
Type of Power Plant: Gas-fired Combined Cycle, 769MW (2-2-1x1 train**)
** (Gas Turbine Generator× 2 + Heat Recovery Steam Generator ×2 + Steam Turbine Generator× 1)
x 1 train
Planned Site: At existing Wang Noi Power Plant, Wang Noi District, Ayutthaya Province, approx
72km north of Bangkok (Existing power station has three units of combined cycle power plants with
a total of 1,910MW capacity. All units supplied by Mitsubishi)
Partner: Siemens Aktiengesellschaft, Germany and Siemens Limited, Thailand
Contract Price: Approximately 39.5 billion Japanese Yen (18 billion Japanese Yen for Marubeni portion)


Summary of EGAT


Foundation: In 1969 (currently under the Ministry of Energy in Thailand)
Representative: Mr. Sutat Patmasiriwat, Governer
Generation Capacity: Approximately 15,000MW (approx. 49% of the total generation capacity in Thailand)
Sales Volume: 405 billion THB (approx. 1,082 billion Japanese Yen) in 2010
Business: Construction/Possession/Operation of Power Plant and Equipments for Transmission and
Transforming, and electric power selling

2011.02.10.
Marubeni Signed a Contract for Construction of One of the Largest Combined Cycle Power Plant in Bangladesh with Bangladesh Governmental Power Generation Company

Marubeni Corporation (“Marubeni”) has signed a contract for construction of New Haripur Combined Cycle Power Plant with the total net capacity of about 410MW on February 9th, 2011, with Electricity Generation Company of Bangladesh (EGCB) Ltd. (“EGCB”).

The contract is worth approximately 31 billion Japanese Yen (equiv. in USD 370million), which is supported by Japanese ODA Loan funded from Japanese Government through Japan International Cooperation Agency (JICA). This plant will be the biggest Combined Cycle Power Plant owned by Bangladesh governmental power sector and the biggest power plant which Japanese company secured a contract.

The scope of this contract includes engineering, procurement, delivery of the equipment and the construction and installation work, on a Full Turn-Key basis. Main equipments, Gas Turbine Generator will be procured from Mitsubishi Heavy Industries (“MHI”) (Generator will be manufactured by Mitsubishi Electric) and Steam Turbine Generator will be procured from Fuji Electric Systems and the plant is expected to be taken over in July, 2013.
This Combined Cycle Power Plant(*), which fuel is natural gas, is environmental friendly technology and it will be equipped with the newest large size Gas Turbine from MHI with highest thermal efficiency among same class Gas Turbines.

Installed capacity of Bangladesh, which population is approximately 150 million, is approximately 6,000MW and it is obviously less than power demands in the country. In addition, it is expected that power demands in the country will increase more than 8% per year based on the stable economic development of the country and demand and supply gap of the power in the country will be expanded every year, This project is for the purpose of generation of power to be distributed to the capital city of Bangladesh, Dhaka and around Dhaka city. With support of Japanese ODA Loan, Marubeni will contribute to reduction of demand and supply gap and development of infrastructure of Bangladesh.

Marubeni are executing Rehabilitation of Haripur 100MW Gas Turbine Power Plant and Rehabilitation of Unit 4 & 5 Karnafuli Hydro Power Plant. In this project, Marubeni believes its extensive experience, competitiveness of price as well as project management capability in the field of power project in Bangladesh are highly appreciated by Bangladesh power sector and EGCB and it led to this successful receipt of the order.

With the chronic demand and supply gap of power and economic growth, a lot of new power plant development project will be floated in Bangladesh. Marubeni has been committed to investing the efforts for the successful completion of this project and further expanding future business in the power sector in Bangladesh.

Summary of Electricity Generation Company of Bangladesh (EGCB) Ltd.
Location : Dhaka (People’s Republic of Bangladesh)
Foundation : In 2004 (One of the Power Generation Company founded in the course of reorganization of Bangladesh Power Development Board)
Employee : About 500


*Combined Cycle Power Plant … High efficient power generation technology to operate Steam Turbine with Steam made by Heat Recovery Steam Generator to utilize exhaust gas after operation of Gas Turbine.