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SOx remover order received for Chinese thermal power station

-November 20, 2003-

press

Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI) and Sumitomo Corporation have jointly received an order from Shanghai Municipal Electric Power Company, China, for construction of desulfurization plant (SOx remover), which will be constructed for the existing coal-burning boilers (300MW x 2 units) at the Shanghai Waigaoqiao Power Plant.
 
 The SOx remover uses the lime-gypsum method, and IHI will carry out engineering work and construction for the entire plant as well as trial operation. The construction costs amount to 4 billion Japanese yen. The plants will be completed in December 2004 and March 2005. This is the first construction of such a SOx remover in the Shanghai district, and it is the first order from China for both IHI and Sumitomo.
 
 IHI owns SEC-IHI Desulfurization Engineering Co., Ltd., a joint venture established by IHI and the Shanghai Electric group, which will be important role in construction of the plant, maximizing procurement of Chinese equipment and machinery.
 
 The World Bank (the International Bank for Reconstruction and Development) will manage performance from the international tender to the contract execution based on the procedures for the loan, for which the cooperative loan provided by the Japan Bank for International Cooperation (JBIC) will be used.
 
 In China, new coal-burning thermal power stations built along the coastal line are now obligated to be equipped with SOx removers. The Environment Protection Law of China was revised recently, which will impose a fine on any violator which emits SOx over the standard level after two years. The penalty will be three times heavier than the current regulations. This will result in increased demand for SOx removers in China.
 
 To suppress the total SOx emission below the required level, the SOx remover to be built this time has superior performance to decrease the concentration in the exhaust gas from the boiler to 37mg/Nm3 (13PPM). China will adopt full-scale environmental regulations in the near future. Therefore demand for environmental protection equipment will increase.
 

Main export achievements
December 1998: SOx removers, Lime-gypsum method, for 2 boilers (Nos. 3 & 4 units, each with 550,000kW capacity) of
  the Hsinta Fossil PowerStation (The Taiwan Power Co.)
July 2000: SOx removers, Lime-gypsum method, for 2 boilers (Nos. 9 & 10 units, each with 550,000kW capacity)
  of the Taichung Fossil Power Station (The Taiwan Power Co.)
February 2002: NOx removers for 2 boilers (Nos. 3 & 4 units, each with 550,000kW capacity) of the Hsinta Fossil
  Power Station (The Taiwan Power Co.)
May 2003: SOx remover, Lime-gypsum method, for 3 boilers of the Pulau Seraya Power Station Stage I
  (PowerSeraya Ltd. of Singapore)


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