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Hitachi America, Ltd.

Hitachi

12/12/2001


Hitachi Power Group Says Coal is Once Again a Viable Power Source


Dec 12, 2001 11:00 AM

LAS VEGAS--(BUSINESS WIRE)--Dec. 11, 2001--Speaking today at PowerGen 2001, Hitachi, Ltd., Power and Industrial Systems, President and CEO, Katsukuni Hisano focused on the resurgence of coal as a viable source of power in the new century as a result of efficient and advanced technology and new approaches to energy production.

Speaking at a press conference today, Mr. Hisano, who also is a senior vice president and director of Hitachi, Ltd., said. "One of the most exciting opportunities for Hitachi in the U.S. in 2002 is the resurgence of interest in large pulverized coal fired plants and the applicability of our WRAP concept to this type of energy production. Under the "WRAP" concept, Hitachi would supply all of the critical components of the plant and provide the appropriate guarantees for both plant output and emission levels."

"In the last fifteen years in the U.S. no large pulverized coal plants have been built due to the economic conditions driven by low gas prices, favoring gas fired combined cycle plants. But in Japan, with no indigenous gas, the economics are different. Japanese utilities have continued to build large pulverized coal plants, both sub-critical and supercritical, burning coal imported from many countries.

"Hitachi has been the leading supplier of these plants building twelve supercritical plants over 500 MW in the last eleven years with several being 1000MW and above. Hitachi now offers this expertise in the US. Our world-leading technology in the areas of sliding pressure boiler designs, which give unrivalled flexibility and performance down to 14.5% load levels at temperatures up to 1135 Degrees F and pressures of 3755 psig. In addition, our patented low-emission combustor designs, combined with Hitachi's expertise in air quality control equipment, provides end users with proven solutions based on our extensive experience in the Japan market," said Mr. Hisano.

"The experience of building these plants in Japan on a turnkey basis will be shared with U.S. engineering companies, allowing them to quickly assimilate knowledge of the latest pulverized coal technologies. It is Hitachi's intention to co-operate with, not compete with, the U.S. engineering companies in the building of these plants by providing a WRAP of the Supercritical Coal Fired Boiler, the Steam Turbine Generator, and the Air Quality Management System, Mr. Hisano said.

"With the very large outputs and, therefore, the very high capital cost of these plants, both the end users and engineering companies are looking to find ways of reducing their risks before they proceed to build these plants. The ability and willingness of Hitachi to wrap all of the critical components of the plant and provide the appropriate guarantees for both plant output and emission levels, combined with our proven experience of building extremely reliable plants, will give a high level of comfort to the customer and will provide potential investors with the confidence they need to participate in the project.

Concluding his remarks, Mr. Hisano said, "Hitachi is well positioned to quickly address the growing requirements of the global power generating industry employing the manufacturing prowess of its factories in Japan and its worldwide network of engineering resources in the Americas, Asia Pacific, Europe and the Middle East."

Hitachi's Power and Industrial Systems Group employs more than 90,000 people around the world. Hitachi is one of only a few companies worldwide that can provide the expertise and total systems needed to cover a wide spectrum of energy needs: nuclear, thermal and hydroelectric power plant systems, as well as the speedy, efficient information system infrastructures required to compete in a global marketplace. By developing new technologies and streamlining various installation processes, Hitachi will continue to provide new, highly efficient generating systems that meet the energy needs of tomorrow.

About Hitachi
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 2000 (ended March 31, 2001) consolidated sales of 8,417 billion yen ($67.9 billion(1)). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at http://global.hitachi.com.

(1) At an exchange rate of 124 yen to the dollar.

Hitachi America, Ltd., a subsidiary of Hitachi, Ltd., markets and manufactures a broad range of electronics, computer systems and products, consumer electronics and semiconductors, and provides industrial equipment and services throughout North America. For more information, visit http://www.hitachi.us/.

Hitachi America, Ltd., Power & Industrial Division supplies a broad range of products and services for use in both the power generation market as well as the industrial market. The division supplies major equipment to power generation and distribution facilities, including hydroelectric, thermal and nuclear power plants. The Power and Industrial Division supplies sophisticated equipment and components for industrial use including steel plants, mass transit systems, chemical plants, and other manufacturing facilities. The division also markets and maintains a field service organization for semiconductor microwave plasma etching equipment.

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Gerard F. Corbett
Hitachi America, Ltd.
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Matt Takahashi
Hitachi America, Ltd.
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masahiro.takahashi@hal.hitachi.com

Sandra Renihan
Hitachi America, Ltd.
Power and Industrial Division
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sandra.renihan@hal.hitachi.com

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