MHPS Announces First Brazilian Win for JAC Gas Turbine

Power Auction Victory Promises a Change in Power

LAKE MARY, Fla.–(BUSINESS WIRE)–Mitsubishi Hitachi Power Systems (MHPS) celebrated its first win in
Brazil for the technical selection of its M501 JAC Gas Turbine for the
Vale Azul II Project. The plant, which will have a contracted output of
466MW in combined cycle, was selected in the A-6 Brazilian Electricity
Auction held on December 20, 2017.

The Vale Azul II Project, now known by the consortium name Marlim Azul
(Blue Marlin), and will be owned by a special purpose entity with
shareholding by MHPS, MH Power Systems Representacoes America Latina and
Vale Azul Energia Ltda. The project was one of two winners in the Brazil
National Agency of Electric Power (Agência Nacional de Energia Elétrica
– "ANEEL") CEL Auction # 05/2017 (“A-6 Auction”) on December 20, 2017.

MHPS technology will provide efficient base load power with low variable
cost for the 25-year term of the power purchase agreements to be
executed as a result of the auction, which will start in 2023. As a
result, the Brazilian grid will be bolstered by reliable and efficient
power generation and, subject to execution of a gas supply agreement,
fueled by domestic natural gas produced by Shell.

Alex Aoki, President & CEO of MHPS South America said, “This project is
a major victory for our South American division, in an incredibly
competitive market. We used a groundbreaking gas turbine technology that
will enable the most fuel efficient and affordable power plant in South
America. With leading MHPS technology, an experienced team on the
ground, and a trusted industry partner like Shell, this project
represents a Change in Power for the Brazilian grid.”

The new plant will be MHPS-TOMONI™ enabled. "Tomoni" is a Japanese word
that means "traveling together,” signifying the combination of digital
and physical products and services. The plant will have a robust
digitally-enabled cloud-based information infrastructure and will use
data analytics and machine learning to leverage the massive amount of
data that are generated during plant operations, driving optimum power
plant performance, flexibility and reliability.

About Mitsubishi Hitachi Power Systems Americas Inc.

Mitsubishi Hitachi Power Systems is a joint venture between Mitsubishi
Heavy Industries, Ltd. and Hitachi, Ltd. integrating their operations in
thermal power generation systems and other related businesses and is
headquartered in Tokyo, Japan. MHPS manufactures the world’s most
efficient Advanced Class Gas Turbines and is leading the development of
the digital power plant of the future through its digital solutions,
MHPS-TOMONI™, providing real-time adaptive control and actionable
knowledge to optimize power plant performance and significantly improve
reliability. MHPS has an extensive network of manufacturing, service,
remote monitoring and O&M support facilities located throughout the
World. Headquartered in Lake Mary, FL, MHPS Americas, Inc. employs more
than 2,000 people who design, build, install, monitor and service gas,
steam and geothermal turbines; boilers and environmental control systems
in the Americas.

Learn more about the Revolutionary Energy spirit of MHPS by visiting www.changeinpower.com.

MHPS is a subsidiary of Mitsubishi Heavy Industries headquartered in
Tokyo, Japan. (7011:JP)

Contacts

Mitsubishi Hitachi Power Systems
David Rosenberg, +1-407-562-0563
[email protected]