Hitachi, Ltd.(NYSE:HIT) collaboration with Marubeni Canada Ltd. and SNC-Lavalin Group Inc.,
today announced that it has obtained purchase orders for six 25MW gas turbine electric
generation facilities from Saskatchewan Power Corporation (SaskPower) of Saskatchewan
Province, Canada. The Hitachi-manufactured facilities will be used in the re-powering* of
SaskPower's Queen Elizabeth thermal power station
*Modifications for combined cycling in which existing power stations are augmented with gas
turbines and exhaust heat recovery boilers
Numerous problems surround superannuated thermal power stations that are nearing
obsolescence, including environmental problems stemming from increased exhaust gas
emissions and rising costs owing to declining efficiency. With more than 20 years in
operation, the majority of Canada's power plants are rapidly becoming obsolete. Hence, the
need to not only convert existing plants to combined cycling while maintaining their
service but also replace certain facilities with modern hi-tech equipment, thereby improving
operational efficiency and converting the stations into more environment-friendly facilities
with lower emissions.
Leveraging the new equipment from Hitachi, SaskPower's re-powering plans will convert
operations to combined cycling while maintaining the service of existing facilities, thereby
increasing power station efficiency 30% to 45% and reducing exhaust gas emissions
200,000 tons annually. With environmental compliance firmly in mind, the plans also call
for the adoption of Hitachi's newly developed Dry Low Nox Combustor, which will
dramatically reduce Nox levels.
The H-25-the model designation of the gas turbines scheduled for delivery to
SaskPower-reflects Hitachi's accumulated knowledge and research achievements and is
designed to enable maximum thermal efficiency of compound-cycle power plants,
especially in combination with exhaust heat recovery boilers. The H-25 model has been
highly praised for its outstanding reliability and performance, and Hitachi has obtained
overseas purchase orders for eight units over the past year.
In the nearly 30 years since Hitachi delivered 100MW steam turbine facilities to Canada's
Queen Elizabeth power station in 1971, the Company has delivered a total of 19 steam
turbine generator facilities in Canada. In February 2000, Hitachi further expanded its
business in the region with the conclusion of an Internet-based Technical Service
Agreement with ATCO Electric Ltd. and SaskPower.
Additionally, in 1988 Hitachi established Hitachi Canadian Industries Ltd. (HCI) in
Saskatchewan Province for the manufacture of turbines and other electric generation
equipment, through which Hitachi has developed its business in close cooperation with the
region. Provided with the opportunity presented by these recent purchase orders, HCI will
be augmented into a comprehensive maintenance center for gas turbines and existing
thermal power plant facilities, through which Hitachi will expand its North American
market operations.
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