M'bishi Heavy to take part in Australia power plant

Industrial Conglomerates

Reuters Staff

TOKYO, June 23 (Reuters) - Japan's Mitsubishi Heavy Industries 7011.T and Mitsubishi Corp 8058.T said they have agreed with Australia's ZeroGen Pty Ltd to join a project to build a low emission coal-fired power plant equipped with a carbon capture and storage (CCS) facility in Queensland.

ZeroGen, wholly owned by the Queensland State Government, has estimated the cost to build a 530 megawatt integrated gasification combined cycle (IGCC) power plant with CCS at A4.3 billion ($3.4 billion). The two Japanese firms have received an order for a feasibility study on the project.

It will be the world’s first commercial-scale IGCC plant with a CCS facility, the companies said in a joint statement. The plant is scheduled to go onstream in 2015. Under the plan, Mitsubishi Heavy will build the power plant and CCS facility, while Mitsubishi Corp will coordinate the project. (Reporting by Osamu Tsukimori; Editing by Hugh Lawson)