First Kawasaki Cogeneration System to Be Installed in Beijing

 Tokyo, October 17, 2006 ― Kawasaki Machine Systems, Ltd. announced today that it has received an order for a 1,440 kW gas turbine cogeneration system from Beijing District Heating Group Co., Ltd. (BDHG), China’s largest heat utility company, working jointly with China Electric Power Technology Import & Export Corp. (CETIC). It is Kawasaki’s first order from China for a cogeneration system using the Kawasaki gas turbine.

 This cogeneration system consists of a natural gas-fueled gas turbine power generation system with a 1,500 kW-class Kawasaki M1A-13D gas turbine and a waste heat recovery boiler. The system will be installed in BDHG’s heat supply station located in Beijing to supply 1,440 kW of power and 4.6 tons/hour of steam to the Beijing West railway station and surrounding area. This will save 50% of the primary energy consumed per one ton of steam compared to supplying heat with a conventional coal-powered boiler. It also makes it possible to supply energy more efficiently while reducing CO2 emissions by 88%. Kawasaki will supply the gas turbine power generation system and make proposals for the overall system while CETIC will be responsible for developing detailed designs, installation and procurement in China. The cogeneration system is scheduled to be completed in May 2007.

 BDHG is the largest heat utility company in China with 1,700 heat supply stations in Beijing. The company regards the implementation of this system as a key model project for enhancing heat supply while reducing environmental burden and is planning similar projects for the future. Kawasaki will work with BDHG on implementation of the project by providing technological assistance and training for system operators.

 Faced with increasingly serious power supply shortages and environmental problems amid its rapid economic development in recent years, China has been working on a national initiative to promote the widespread use of distributed cogeneration systems. Kawasaki has been steadily making inroads into the Chinese market since the establishment of its Shanghai office in July 2005. Kawasaki will use this first order as a stepping stone to advance the promotion of its cogeneration systems in the ever expanding Chinese market.