Shizuoka Gas & Power Orders a Gas Engine Power Plant

Tokyo, November 5, 2014 — Kawasaki Heavy Industries, Ltd. announced today that it has been awarded a full turnkey contract by Shizuoka Gas & Power Co., Ltd., a power producer and supplier (PPS)*¹ operated by Shizuoka Gas Co., Ltd., to build a gas engine power plant in Fuji City, Shizuoka Prefecture. This is the first order ever to be received from a PPS owned by a gas company.

The new 15 MW power plant will consist of two Kawasaki Green Gas Engines (KG-18-V), each boasting an electrical output of 7,800 kW and the world’s highest electrical efficiency of 49.5%.  Kawasaki will oversee the entire construction project, including power plant design, supply and installation of power equipment, and facility construction. The power plant is scheduled to be put into operation in January 2016.

The Kawasaki Green Gas Engine features outstanding electrical efficiency and environmental performance, as well as fast start-up and loading capability that attains maximum load within just 10 minutes. A multi-unit configuration of these gas engines enables highly flexible and low-risk plant operation. Easy operation with the Daily Start and Stop (DSS) system is also a feature that sets this engine apart.

The latest order attests to the superior quality of these features, as well as the excellent performance of the gas engines currently in operation. It also shows that Kawasaki's gas engine power plants demonstrate outstanding economic efficiency (by virtue of merit order*²) and are an ideal choice for PPSs looking for load following power plants to adjust demand and supply.

Founded in July 2014 by Shizuoka Gas as part of efforts to promote its integrated energy business, Shizuoka Gas & Power will utilize the new power plant in combination with the surplus electricity from local captive power plants, renewable energy and other energy sources to meet varying demands for electricity. The Shizuoka Gas Group aims to launch the new integrated energy business by 2016 and help revitalize the region through the gas and electricity it will provide.

Needs for distributed power systems including small and medium scale utility are increasing to ensure a stable power supply and also in response to the full liberalization of electricity retailing. Kawasaki is continually moving forward to meet those needs and further grow its energy and environmental business through the marketing of its innovative gas engines and other power systems.

*1

A power producer and supplier (PPS) is defined under Japanese law as a type of independent electricity producing company that produces over 50 kW of high-voltage power and supplies it to factories and large-scale retail stores via the power grids of utility companies.

*2

Merit order refers to a way of combining various power generation facilities to optimize the cost of production of electricity.