MHI to Collaborate with Reykjavik Energy of Iceland in Developing Geothermal Energy

Guolaugur Sverrisson, Chairman of OR, Hjorleifur B. Kvaran, the Icelandic company’s CEO, and Ichiro Fukue, Senior Executive Vice President of MHI, today signed a memorandum of understanding (MOU) in Tokyo.

OR, one of the world’s leading geothermal power generation companies, is looking to promote geothermal energy use globally and has already begun development activities in Africa and elsewhere. With conclusion of the MOU, MHI, the world’s foremost manufacturer of geothermal power generation equipment, will now participate in OR’s initiative and jointly explore geothermal power generation projects worldwide.

Specifically the two companies will collaborate in activities involving identification and verification of geothermal power generation potential, project launch support, development and supply of major equipment, preparation of power plant operation and management guidelines, etc.

The two companies also agreed to collaborate in green energy projects within Iceland, including production of synthetic fuel as a clean alternative fuel for transportation such as ships, and the establishment of an infrastructure for verification testing of electric vehicles (EV).

These projects are part of Iceland’s various undertakings to realize a zero emissions society, i.e. 0% hydrocarbon fuel emissions, by 2050.

MHI decided to contribute to Iceland’s clean energy policy and, together with Mitsubishi Corporation, signed an MOU with the Icelandic government in September 2008. Since then MHI has cooperated in studies of dimethyl ether (DME) production from gas associated with geothermal power generation and the establishment of an EV verification testing infrastructure. The latest MOU on collaboration will further accelerate these initiatives.

OR is the largest geothermal electricity provider in Iceland, the nation ranked No.1 in per capita geothermal power generation worldwide. Through its operation of the country’s largest and second-largest geothermal power plants, the company has accumulated vast expertise in the development, planning, operation and management of geothermal power plants.

MHI has enjoyed a solid relationship with OR for two decades as a dependable provider of geothermal power generation equipment. To date MHI has delivered or received orders for a total of 15 geothermal power plants for Iceland, including 13 units to OR, and has delivered more than 100 units globally.

Going forward the two companies will further strengthen their activities to promote utilization of geothermal energy by combining their technologies and know-how.

Mitsubishi Heavy Industries, Ltd. (TSE: 7011, ‘MHI’), headquartered in Tokyo, Japan, is one of the world’s leading heavy machinery manufacturers. MHI’s diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.