Company News

UPDATE 1-Mitsubishi plans next-gen coal power in China - Nikkei

June 4 (Reuters) - Mitsubishi Heavy Industries Ltd 7011.T plans to commercialize the integrated gasification combined-cycle (IGCC) coal power generation technology in China, anticipating a huge demand there, the Nikkei business daily said.

IGCC technology burns coal after turning it into gas, improving power conversion efficiency and reducing carbon dioxide emissions by 20 percent, the paper said.

Mitsubishi Heavy aims to pitch the technology with Chinese turbine maker Dongfang Electric Corp 1072.HK. Once it gets an order, the major Japanese heavy machinery maker plans to establish a joint venture with Dongfang, the paper said.

Mitsubishi Heavy is expected to hold more than 50 percent stake in the proposed joint venture with Dongfang, Nikkei said.

By manufacturing equipment in China, Mitsubishi Heavy aims to sharply lower costs and reduce the price gap versus conventional plants, the paper said.

Mitsubishi Heavy aims to capture more than 50 percent of the Chinese IGCC market, the report said.

Mitsubishi Heavy intends to focus on China initially, but plans to cultivate export markets in the United States, Australia and India, where coal is also used widely to generate power, Nikkei said. (Reporting by Shailesh Kuber in Bangalore; Editing by Gopakumar Warrier)