MHI Receives Orders from South Africa for Basic Design and Procurement Activity
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Tokyo, Japan, Dec. 07, 2005 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI; TSE: 7011) has received two orders from PBMR (Pty) Ltd of the Republic of South Africa related to the core barrel assembly (CBA) of the company's demonstration power plant pebble bed modular reactor. One contract calls for MHI to undertake the basic design of the CBA, an integral component of the reactor pressure vessel, and another is for provision of forgings and procurement of items for the CBA. The contracts, together worth approximately US$15 million (1.8 billion yen), have already been signed.
Configuration of PBMR power generation facility
The deliverables from MHI will be used in a demonstration unit that PBMR is scheduled to start constructing in 2007 for delivery in 2011 to Eskom, South Africa's national power utility, which plans to introduce the reactor into the country's grid system. These contracts represent a significant step forward for PBMR in its plans to commercialize high-temperature, closed-cycle, gas-driven nuclear power generation systems. PBMR technology is considered to be both inherently safe and commercially competitive.
Last year MHI received an order to review the conceptual design of the CBA. The latest orders were placed upon completion of the design review. They are the first contract for PBMR for the manufacturing of a demonstration power plant (DPP) and indicate that the PBMR project has now evolved from the development stage to a phase of procurement, manufacturing and construction. The basic design is slated for completion in December 2006, and in parallel MHI will procure materials for the CBA, such as special alloy steel. MHI expects to sign a contract of detailed design work of the CBA and production of various other components for the 165 MWe (megawatt-electricity) PBMR demonstration unit within 2006.
The PBMR is a safe and cost-efficient reactor that uses silicon carbide-coated uranium particles encased in graphite for fuel spheres, making it free from risk of reactor core meltdown; helium is used as the coolant and energy transfer medium to a closed-cycle gas turbine and generator. The first PBMR commercial operation in South Africa is slated to commence in 2013. In South Africa, electricity demand is expected to increase by 30GW (gigawatts) in the next two decades. Strong support coming in from the South African government is prompting expansion of power generation capacity with the construction of PBMR power plants planned at a rate of three units per year. In 2020, the total number of PBMR units is expected to reach 24 and they are planned to produce 4 GW, about 13% of additional electricity demand.
PBMR awaits approval of certain key procedural benchmarks namely, a positive Record of Decision from the South African Department of Environmental Affairs and Tourism on the Environmental Impact Assessment, as well as a License to begin Construction from the National Nuclear Regulator.
PBMR (Pty) is a nuclear power engineering firm established in 1999, when the PBMR project was launched. Equity stakes in the company are held by two South African enterprises, Eskom and the Industrial Development Corporation of South Africa (IDC), and one foreign firm, British Nuclear Fuels (BNFL) of the UK. MHI has been developing the PBMR helium-driven turbo generator system in collaboration since its participation in the system's feasibility study, which was conducted in 2001 as part of the PBMR development project.
The latest contracts were awarded to MHI based on PBMR's high evaluation of its solid record in design and production capability, as demonstrated by its vast experience in the nuclear field, and its recognized success in working with South African companies. Buoyed by the latest orders, MHI aims to further strengthen its cooperative relationship with PBMR and, once the demonstration module proves successful, to take a proactive approach toward PBMR projects not only in South Africa but worldwide.
About Mitsubishi Heavy Industries, Ltd
Mitsubishi Heavy Industries, Ltd. (MHI; TSE: 7011), headquartered in Tokyo, Japan, is one of the world's leading global heavy machinery manufacturers, with consolidated sales of 2,373 billion yen in fiscal 2003 (year ended March 31, 2004). MHI's diverse lineup of products and services encompasses shipbuilding, steel structures, power plants, chemical plants, steel plants, environmental equipment, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.
For further information, please visit the Mitsubishi Heavy Industries, Ltd home page at: http://www.mhi.co.jp/indexe.html
Contact
Hideo Ikuno:
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Tel: +813-6716-5277,
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Daiya PR (PR for Mitsubishi Heavy Industries, Ltd.)
