Renewable Energies Business Presentation Meeting

October 17, 2006 Power Systems Headquarters

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1．Position of Power Systems Segment in MHI FY2005 Actual

FY2008 (Business Plan for FY2006)

Power 25% Systems Segment

Consolidated net sales 2.8 trillion yen

Power 29% Systems Segment

Consolidated net sales 3.0 trillion yen

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2. Power Systems Headquarters – Business Policy

Concentrate on growth areas Raise profitability

Change product strategy

Concentrate resources on GTCC and renewable

・・・ energy-related products (wind turbines, solar cells, etc.) .

Expand sales of highly profitable products.

・・・ Expand service/maintenance business. ・・・

Shift emphasis from generally available products to those using MHI’s unique, cutting-edge technologies (air-blown IGCC, BFG-fired GTCC, thin film amorphous silicon (a-Si) type solar cells, and high-temperature gas turbines)

GTCC； Gas Turbine Combined Cycle,            BFG； Blast Furnace Gas IGCC； Integrated coal Gasification Combined Cycle All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

3．Composition of Products and Their Contribution to Sales/Income ・・・(In index figures) ・・・

Nonconsolidated net sales 100

136 (＋36) Other (＋4) Large conventional power plant, industrial use, marine machinery, etc.

GTCC (＋20)

Wind power generation system

Solar power generation system

GTCC

Large conventional power plant

Renewable energies (＋12) FY’05-FY’06 FY’07-FY’08 Average Average

Ordinary income 100

157 (＋57) Other

(＋9)

Large conventional power plant, industrial use, marine machinery, etc.

GTCC (＋27) Renewable energies (＋21) FY’05-FY’06 FY’07-FY’08 Average Average

(＋21) Industrial use

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Marine machinery

4． Power Systems Headquarters – Capital Investment Plans ・・・ (In

index figures) ・・・ 220%

(＋120%) Other (540%)

100%

GTCC (130%) Renewable energies (190%)

FY’03-FY’05 Average (Actual)

FY’06-FY’08 Average (Target)

Major capital investment projects ahead: ・ Facilities to produce gas turbine hot parts ・ Plant to produce microcrystalline tandem solar modules (additional plant enlargement being considered) ・ Wind turbines production facilities ・ Facilities to produce gas turbine/steam turbine main bodies

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5-1．Power Systems Headquarters – Products Portfolio (1/2) GTCC Gas engines

MHI’s position in the market Growth areas with aggressive investment

Opportunities for MHI Wind turbines

Industrial conventional

Large Solar cells

GTCC

Expansion

Respond to the market’s rapid expansion and secure short-term profit.

Marine machinery

Large Conventional

Small Stability

Many Intensified entrants in competition to the market lead to selection

Maturity (Decline)

Survivors to enjoy profit

Wind turbines

Take a lead with MHI’s technological superiority. Increase market share by expanding alliances.

Areas to be maintained with stable growth

Large conventional power plant, Industrial conventional, Marine machinery Mature businesses generating stable income and forming the basis of the Headquarters’ business.

Maturity phases

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Current products

Solar cells Make investments as large in scale as those in the electronics industry in order to achieve growth.

IGCC Lithium batteries Fuel cells

Next large-scale products

5-2．Power Systems Headquarters – Products Portfolio (2/2) Market share

Market size and market share

Amount of investment and profitability

(Size of circle corresponds to size of sales.)

Profitability

( Size of circle corresponds to size of sales. )

Industrial Solar cells

Marine machinery

30%

Wind turbines

GTCC 20%

Large Conventional

10%

Solar cells

2

GTCC

Industrial

10%

Marine machinery

Large conventional

Wind turbines

4

Market size (Trillions of yen) All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

Amount of investment

6. Long-term Projection of Global Demand for Primary Energies 500 Solar Thermal Heating

Annual Primary Energy Consumption

[ ×10 6 GWh/Year ]

Other Renewable

400 300

40% to be produced from natural energies

Solar Power Wind Power

Biomass

200 Hydro Power

Nuclear Power

100

Gas

0 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

Coal Oil

[ Year ] All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

Reference：solarwirtschaft.de

7．Trends in Global Demand for Power Generation Systems for New Installation

GTCC 45.0 40.0

Expanding 5GW/year mainly in SE Asia and Middle East.

50.0

Projection

Actual

Oders(GW)

35.0 30.0 25.0 20.0 15.0 10.0

Cina

40.0

South Asia

35.0

East Asiaaa Africa

30.0

Middle Eas

25.0

Eastern Europe

20.0

Western Europe Centrak/South America

15.0

North America

10.0

5.0

5.0

0.0

0.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2015

2002

40.0 35.0 30.0 25.0

2005

2006

2007

2008

2009

2010

2015

Other Asia Western Europe North America

15.0

Increase to 30GW levels. Oders(GW)

45.0

2004

20.0

South Asia East Asia Africa Middle East East Europe/CIS Western Europe Central/South America North America (ex. IGCC)

50.0

2003

Solar power

Large conventional power plant

Oders（GW）

Other

45.0

China South Asia East Asia Africa Middle East Eastern Europe/CIS Western Europe Central/South America North America

Oders （GW）

50.0

Wind turbines

20.0 15.0

10.0

5.0

10.0 5.0

0.0

0.0 2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2002 2003 2004 2005 2006 2007 2008 2009 2010 2015

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8． Expand GTCC Business ◆ Production of gas turbines (projection) (77) Number of GTs produced 40

Production capacity

30

(68)

Production capacity of 30 units currently being established through capital investment.

(58)

(57)

40∼

40∼

30

26

24

Number of GTs in stock orders

21

20

26

30

FY’08 H20

FY’09 H21

21

10

0

30

FY’06 H18

FY’07 H19

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Produce 30plus GTs by enhancing collaboration with other companies.

9． Progress in Construction of A New Plant for Production of Gas (Takasago Machinery Works) Turbine Hot Parts ◆ Raise production capacity of hot parts ∼ Construct a new plant

Operation to start in March 2007. Amount of investment: Approx. ¥8bn

Blades plant (under construction)

Combustor Basket  plant (under construction)

MHI is considering additional investments to respond to future demand in 2008 and thereafter. All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

10．Expand ＧＴＣＣ Business ◆ Increase production of hot parts MHI plans to achieve production increase target set for 2010 ahead of schedule in order to supply hot parts to alliance makers (in numbers besides 30 units produced).

Turbine Blades Construction of Further capital To be supplied investments a new plant to alliance (under (Takasago makers consideration) Machinery Works) 145 Utilization of 121 OSC**, etc.

Air

Air

Production capacity*

131

100

2005 2006 2007 2008 2009 2010 H17 H18 H19 H20 H21 H22 * Presented in index figures with production capacity in 2005 as 100.

Internal cooling Gas Turbine row １Blade structure

Dry low Nox combustor ** Orlando Service Center (Service Plant of MPSA)

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11．Expand Service/Maintenance Business ・・・(In index figures) ・・・

128

Income from service/maintenance business

    Sales from from service/ service/ Sales maintenance business business maintenance

100

113

98 121

100

103

130

Other Industrial conv. Large conv.

GTCC

2005

2006

2007

2008

Efforts to achieve the ratio of sales from service/maintenance business to total sales of 40% [Achieve higher customer satisfaction] 1. Expand markets of MHI products; make entries in a wider range of markets of peers’ products. Establish a global network to respond to rapidly increasing LTSAs and service/maintenance business that is facing increasing sophistication and intensifying competition.   (1) Expand services operations overseas (A service company for BFG-fired GT in China, etc.)   (2) Collaborate with overseas manufacturers.   (3) Provide rehabilitation service of peer-made boilers and turbines. 2．Make entry into O&M market All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

12．Expand BFG-fired Gas Turbines Business ◆ MHI is receiving a growing number of orders by leveraging its unique technology. MHI maintains almost dominant market share in BFG-fired GTCCs. Going forward, MHI will leverage its unique technological superiority to win more orders from Chinese and other markets.

Order trends for BFG-fired GT

20

Delivered Under production Orders (projection)

Period ’82-’06 ’06-’08 ’07-’09

13 11 7

3,000

2,000 Capacity

15 25 Unit NOS. 1,000

10 20

Total Capacity (MW)

25

Number of units

5 15 1990

1995

2000

2005

Year

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World’s largest BFG-fired GTCC (using M701F ) Kimitsu Cooperative Thermal Power Company, Inc. (Operation started in 2004)

Orders received from: Japan: 8 units China: 12 units Eastern Europe, etc.: 4 units India and Europe：Sales activity under way

13．Trends in Global Wind Turbines Market ・ Global market is expected to continue expansion (11GW in 2005, 25GW in 2010, and 40GW in 2015). ・ Currently, Europe accounts for approx 73% of the global market. North American and Asian (China and India) markets are expected to expand sharply. 30

Annual Wind Power development

Wind turbines installed  (GW/year)

Europe 25

Americas 20

Asia 15

Other 10

Already installed  5

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2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

0 Year

14．Market Share of Mitsubishi Wind Turbines ・ In 2002, MHI launched MWT-1000A on the market. In 2005, MHI accounted for 2.0% (233MW/ranked 10th) in terms of global market share (7% and 3rd in the U.S., 57% and top market share in Japan).

Top-10 Suppliers in 2005 % of the total market 11,407 MW ENERCON (GE) 13.2% GAMESA (ES) 12.9%

GE WIND (US) 17.7%

SUZLON (Ind) 6.1%

SIEMENS (DK) 5.5% REPOWER (GE) 3.1% NORDEX (GE) 2.6%

VESTAS (DK) 27.9% Others 5.0% Source: BTM Consult ApS - March 2006

ECOTÉCNIA (ES) MITSUBISHI (JP) 2.1% 2.0%

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15．Growth of North American Wind Turbines Market  Market Sizing

Market Forecast Scenarios – Combined 2006 - 2010 Annual increase in MW –MW Basic scenario (2006∼2010) Add – EER Base Scenario 2006 - 2010 CAN Base Canada

4,500

USU.S. Base

4,000

Net Adds Base

6,000

4,920 4,590 5,000

4,000

5,140

4,670

0 99

USU.S. Low

4 00

3,500

8 00

2,500

4,150

0 75

Canada CAN Low 50 0

3,000

1

0 ,07

1

0 ,12

1

0 ,14

3,800 00

2,000

3,8

3,200 00

3,2

1,500

7 00

60 0

1,000

00 2,000

2,0

200 1,1,200

0 80800

500 0 2006

2007

2008

2009

2010

Annual increase in MW – High growth scenario MW Add – High Growth Scenario 4,000

3,800

3,600

3,600

3,400

3,000

2,000

Annual increase in MW – Low growth (2006∼2010) MWscenario Add – Low Growth Scenario

U.S. US High

Canada CAN High

6,000 5,000

1,10

80 0

4,000

0

0 1,20

1,40

00 4,200

4,4

1,50

0

0

1,000 3,000 2,000

0

2006

2007

2008

2009

2010

4,2

4,000 00 4,0

3,800 00

3,8

00 4,500

4,400 00

4,5

1,000 0 2006

2007

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2008

2009

2010

16. Trends in Market Prices of Wind Turbines and Production Plans for Mitsubishi Wind Turbines ・ Market prices of wind turbines started to rise in 2004. Currently, the market is the “seller’s market” to the levels unseen before. ・ MHI will expand production bases for Mitsubishi wind turbines to increase production to over 1000MW in 2008.

Production plans for Mitsubishi wind turbines (MW)

Trends in prices of wind turbines (Price per output (kW) with the figure in 2004 as 100)

(MW)

(%)

1400

160 1.6

Target profit margin: 10%

140 1.4

1208

□Yokohama Plant ■Nagasaki Plant

1200 1000 800

120 1.2 100 1

0.8

600

381

400

26

200 2004 H16

2005 H17

2006 H18

2007 H19

2008 H20

0

584

671

191

261

H16 2004

H17 2005

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350 624

355

321

H18 2006

H19 2007

H20 2008

17．Plans to Expand Wind Turbines Plants (Production of nacelles at Nagasaki Plant) ・ Dedicate the Nagasaki Plant, the main wind turbines plant, to production of 2.4MW models and increase production capacity from:      480MW → 650MW +

Nagasaki Plant

Nacelle production line

Rotor head production line

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18． Production of Nacelles at Yokohama Plant (Honmoku Plant) ・

Leverage a large space at Yokohama Plant (production facilities for steel structures and bridges at Honmoku Plant to be converted) and port facilities.

・

Start production in October to produce nacelles at two plants (in Yokohama and Nagasaki).

・

Start establishing a supply chain in the Kanto area following the completion of a new nacelle production plant.

・ Secure production capacity at Yokohama Plant as high (650MW) as at Nagasaki Plant. Honmoku Nacelle Plant

Yokohama Plant (Honmoku Plant) Shipping quay

Bayside Marina

Kanazawa Plant MWT92

Wind turbines plant

Hakkeijima All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

Depot for shipment

19.  Production of Nacelles at Yokohama Dockyard & Machinery Works (Honmoku Plant) Yokohama Plant (in Honmoku)

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20. Expansion of Blade Production Plant （VIENTEK） ・Capacity expansion at the Mexico plant (VIENTEK) to increase production of wind turbine blades for 2.4MW machines marketed in the core U.S. market. （Capacity expansion at the Nagasaki Plant to increase production of wind turbine blades for the Japanese market. ) Blade production capacity: up from current 400MW to 1200MW+. VIENTEK plant: blade shipment

Blade production line

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21-1. History of Developing Mitsubishi Wind Turbines

3000

2006 Yokohama city (Demo model)    2400kW

Output kW

2500

Wound induction motor Hotel New Awaji

2000

2000Kw Foote Creek, USA, 600kW

1500 WinkraEnergy, Germany, 450kW

1000 500 0

Mitsubishi Nagasaki Test Machine 40kW

Kyushu Electric Power Okino-erabu Island, 300kW

Tohoku Electric Power Tappi WP, 275 kW

Murorancity, 1000kW

NEDO Tappi WP, 500kW

Tohoku Electric Power Tappi WP, 300 kW

Squirrel cage induction motor

Okinawa New Energy Development Gushikawa 1950kW Synchronous motor

Tohoku Electric Power Tappi WP, 300kW

Hokudancho 600kW

1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

Year

21-2. Delivery of Mitsubishi Wind Turbines

1400

Cumulative installation MW

1200 1000

MWT-300

MWT-S300

MWT-500

MWT-600

MWT-S600

MWT-1000

MWT-1000A

MWT-S2000

MWT92/2.4

Delivered: 2,077 units / Total output: 1,295MW

800 600 400 200

First model

Fiscal year All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

0

As of End/FY2005 (Operation started as of March 2006)

22. Mitsubishi Wind Turbines - Outline MWT62/1.0

Operation

MWT92/2.4, MWT95/2.4

Market launch in 2003

Market launch in 2008

1000 kW

2400 kW

Rotor Diameter

61.4 meters

92/95 meters

Hub Height

69/60 meters

70/80 meters

Rated Output

Power Regulation: Full Span Pitch Control Wind Class : IEC Class IIA All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

Rated Output: 2.4MW Rotor Diameter: 92m IEC Class IIA

23. Yokohama 2.4 MW Demo Model ・Performing a thorough examination of performance and reliability by using a demo model of large-sized wind turbine at the Yokohama Plant (in Kanazawa)  

New Model (MWT92/2.4) Demo model (full view)

Demo model (Nacelle, rotor head)

Test: lightening damage to wind turbine blade (demo model; Apr 2, 2006). 63 coulomb measured. No problem detected. Assembly of nacelle (Nagasaki plant)

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24. Mitsubishi Wind Turbines in the U.S. Total 1,850MW 2,475 units (sales as of may 2006) Oregon Oregon Area Area Condon ：： 600kW Condon 600kW × × 83 83 units units Combine Combine Hills Hills ：1000kW ：1000kW xx 41units 41units Total 90.8MW 124units Total 90.8MW 124units

Tehachiapi Tehachiapi California California Area Area ToyowestⅠ：250kW × ToyowestⅠ：250kW × 20 20 units units Mojave’89 Mojave’89 ：275kW ：275kW ×340 ×340 units units Mojave’90 Mojave’90 ：275kW ：275kW ×300 ×300 units units Mojave’99 ：600kW × 30 units Mojave’99 ：600kW × 30 units Morwind Morwind ：600kW ：600kW × × 29 29 units units Mogul ：500kW Mogul ：500kW × × 88 units units OASIS :1000kW OASIS :1000kW xx 60units 60units Total 280MW 787 Total 280MW 787 units units

Palm Palm Springs Springs California California Area Area Mountain ViewⅠ： 600kW Mountain ViewⅠ： 600kW × × 74 74 units units Mountain Mountain ViewⅡ： ViewⅡ： 600kW 600kW × × 37 37 units units Total Total 66.6MW 66.6MW 111 111 units units

Wyoming Wyoming Area Area Foot Foot Creek Creek Ⅰ： Ⅰ： 600kW 600kW × × 69 69 units units Foot Creek Ⅱ： 600kW × 3 units Foot Creek Ⅱ： 600kW × 3 units Foot Foot Creek Creek Ⅳ： Ⅳ： 600kW 600kW × × 28 28 units units Rock Rock RiverⅠ RiverⅠ ：1000kW ：1000kW × × 50 50 units units Total Total 110MW 110MW 150 150 units units

MPS MPS Los Los Angeles Angeles Office Office (Wind Business Group) (Wind Business Group)

VienTek,Mexico VienTek,Mexico (Blade (Blade Factory) Factory)

Undisclosed Undisclosed Project Project A A   :   : 1000kW 1000kW xx 38 38 units units Project B   : 1000kW x 90 units Project B   : 1000kW x 90 units Project :: 1000kW Project C C 1000kW xx 45 45 units units Project :: 1000kW Project D D 1000kW xx 135units 135units Project :: 1000kW Project EE 1000kW xx 160units 160units Project F : 1000kW x Project F : 1000kW x 250units 250units Project :: 1000kW Project G G 1000kW xx 80units 80units Total Total 798MW 798MW 798units 798units

Iowa Iowa Area Area Iowa :: 1000kW Iowa 1000kW xx 50 50 units units Total 50MW 50units Total 50MW 50units

Texas/New Texas/New Mexico/Arizona Mexico/Arizona Area Area White White Deer  : Deer  : 1000kW 1000kW xx 80 80 units units Brazos    : 1000kW x 160 Brazos    : 1000kW x 160 units units Caprock : 1000kW x 80 units Caprock : 1000kW x 80 units San San Juan Juan Mesa Mesa :: 1000kW 1000kW xx 120units 120units Steel :1000kW Steel Park Park :1000kW xx 15units 15units Total 455MW 455units Total 455MW 455units

MPS MPS HeadQuarter HeadQuarter (Orlando,Florida (Orlando,Florida))

Red color: MWT62/1.0 All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

25. Mitsubishi Wind Turbines in the U.S. California ‒ Mojave,  MWT-250 x 300 unit  1990∼

Dia. 28m x T.Height 30m

California ‒ Oasis  MWT-57  60 Units

Texas - Brazos   MWT-62  160 Units  

Operations in Dec. ‘04

Operated began Dec. ‘03

Rotor Diameter: Tower Height:

57meters 69meters

Rotor Diameter: Tower Height:

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61.4meters 69/60meters

26. Development of Offshore Wind Turbines ・ Installation of offshore wind turbines is expected to grow to take advantage of favorable wind conditions. Fundamental technologies are under development in Japan and abroad. ・ MHI is the only group in the world that engages in both the wind turbine and shipbuilding (marine structure) businesses. MHI will leverage its overall technological capabilities to deliver world-class offshore wind turbines. Offshore wind turbines in Europe (mounted on towers driven into the ocean floor)

Example of offshore wind turbines mounted on a floating platform (Tokyo University)

Source http://www.middelgrunden.dk All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

Coastal area  ［Mounted on a floating platform］

27. Solar Cells - Business Environment Market share by manufacturer Global market

O ther 28% Shell Solar 2%

6,000 Japan

Production (MW/Year) 生産量（MW/年）

5,000

Europe

Forecast of global demand for solar cells Source:Solar Generation III by European Photovoltaic Industry Greenpeace 

Association

(EPIA)/

Projection as of Dec 31, 2005

Q -C ells 9%

Isofoton 3% Motech 3%

Sanyo 7% SchottMitsubishi Solar Electric 6% 5%

Suntech 5%

North America

4,000 3,000

Sharp 24%

Kyoce ra 8%

Other Production and shipment (Actual)

Market share by type Ribbon-Si CdTe 3%

2,000

1,759

Monocrystalline a-Si 7%

a-Si 4%

2%

CIS 0%

1 ,1 9 5

1,000

562

744 Monocrystalline Si 28%

0 2002 2003 2004 2005 2006 2007 2008 2009 2010

Polycrystalline Si

56%

As of 2005, MHI ranked 20th in the global solar cell market. MHI will increase production to join the world’s top 5 companies by 2010 as a leading thin-film solar cell maker.

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28. MHI’s Production Capacity and Sales Outlook

Global market size  世界市場規模

350

(Ratio（当社生産量比率） of production by MHI)

(MW/Year)

生産能力／購入希望量（MW/年）

Production capacity / Customers’ demand

Volumes of purchase by existing MHI customers are expected to increase sharply. These customers have requested MHI to increase supply volumes rapidly and significantly.   1,900

2,500

3,400

4,600

5,600

（0.7%）

（2.1%）

（2.7%）

（3.5%）

（4.6%）

Production 増設予定 increase (plan)

300 250

Microcrystalline

微結晶微結晶

200

Customer demand 顧客購入希望量

Amorphous

150

アモルアモルファス ファス

100

当社生産実績・予定量 (actual/forecast) by

Production MHI 

50 0

0.4 H14 2002

3.6 H15 2003

52 7 H16 2004

23

12

14

H17 2005

H18 2006

H19 2007

H20 2008

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H21 2009

H22 2010

29. Trends in Production and Cost Module cost is expected to decrease sharply as production increases. Production [ MW/Year ]

Module cost

300

50%

200 Production

100 0 2004

2006

2008

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2010

Module cost [ % ]

100%

400

0% 2012 Year

30. Comparison of Solar Cells 結晶型 Crystalline 

アモルファス型 Amorphous  光  白板ガラス Glass  Transparent Sunlight  透明電極（＋） substrate   electrode

Sunlight  光

白板強化 Glass  ガラス   substrate

Electrode Ag電極

200μm

Back P p型Si type Al裏面 Ｎ type Texture     n型Si テクスチャー Si  electrode 電極（＋） Si  (Ag) Back sheet  バックシート

3.5μm 0.3μm 2μm

1.5μm 0.3μm

EVA 反射 AR coating 防止膜

Transparent  Sunlight  光 白板ガラス Glass  substrate 

electrode (＋) 透明電極（＋）

（＋）

(Ag) （−）

Cross Section 断面構造  

微結晶タンデム型 Tandem 

EVA Back Ag裏面

EVA

Back sheet  バックシート

バックシート Back sheet 

Ag裏面 Back 電極（−） electrode(Ag)

電極（−） electrode (Ag)

p i n

アモルファストップ電池 Amorphous top cell （0.3μm） Microcrystalline bottom 微結晶ボトム電池 cell （2μm）

p i n

0.3μm

(同一生産量ベース）

コスト Cost ratio

100%

90%

80%

セル効率 Cell efficiency

14∼17%

7∼8%

11∼12%

Annual Power  年間発電量 Generation

（温度係数） （Thermal Coefficient）

Volume of  シリコン使用量 silicon & Cost とコスト

200μm

100%

110%

105%

（-0.4%/℃）

(-0.2%/℃）

（-0.3%/℃）

100%

2.4 ｙｅａｒ  2.4年

1年 1ｙｅａｒ 

EPT： エネルギーペイバック タイム

EPT=

製造ｴﾈﾙｷﾞｰ Energy Annual Power  年間発電量 Generation

2.1 ｙｅａｒ  2.1年

0.3μm シリコン シリコン Cost Silicon ｆｉｌｍ  ｏｆ silicon thickness 膜厚 コスト

EPT

19%

シリコン シリコン Cost Silicon ｆｉｌｍ  ｏｆ silicon thickness 膜厚 コスト

2.5μm EPT

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シリコン Silicon ｆｉｌｍ  thickness 膜厚

22%

シリコン Cost ofコスト silicon

EPT

31. Road Map ｏｎ Solar Cells for NEDO Microcrystalline tandem solar cells to replace crystalline solar cells Lowering system prices is key to diffusion of solar cells. Accordingly, mass production of solar cells using thin-film silicon technology or composites is attracting attention as a substitute for crystalline solar cells. In particular, MHI’s proprietary technologies (for production of high-speed, large-area films) are highly valued by NEDO and peers. 2002

2007

~ JPY 50/kWh

Crystalline solar cells

2010

2020

4.8GW 4.8GW

35GW 35GW

Lower cost of bulk crystalline silicon solar cells JPY 30/kWh Microcrystalline tandem Lower cost of thin film silicon solar cells by using large-area thin film production and other technologies. Power generation cost

2030 102GW 102GW

Ｔhin-film (silicon, composite) solar cells to appear.

JPY 23/kWh

Achieve cost reduction through technological generation change. Higher performance achieved by ultrathin/multi-junction solar cells.

New materials, which are neither silicon nor composite, to appear.

JPY 14/kWh

Achieve further cost reduction through lowcost, high-quality production process and longer product life cycle

Year

Module efficiency (%)

Module efficiency(%)

15 10

Solar cells using new materials and  new structures Source ：NEDO "PV Roadmap 2030 (PV2030)"

Development of next-generation production technologies achieving high productivity and efficiency

15％

Development of 12％ microcrystalline tandem solar cells

2004

2005

2006

2007

JPY 150 billion

JPY 7/kWh

＜Development timetable for highly-productive thin film silicon solar cells＞

20

Development investment (for 25 years starting 2005):

2008

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2009

18％

2010

Development of cell manufacturing technologies achieving high efficiency and productivity

32. Rendering of the New Plant A new plant for production of microcrystalline tandem solar modules with annual production of approx. 40MW to be constructed adjacent to the amorphous solar cell production plant (capex: approx. ¥10bn). New products to be launched in April 2007.

Rendering of the new plant for production of microcrystalline tandem solar modules (steel framed, two-story building with dimension of 150m(W)x50m(D)x15m(H)) All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

33. Production Facility for Microcrystalline Tandem Solar Cells The plasma CVD production line, the central part of a microcrystalline tandem solar cell production facility, has an efficient and compact structure based on MHI’s expertise in amorphous solar cells. Production Production facility facility for for microcrystalline microcrystalline tandem tandem solar solar cells cells (Full (Full view) view) Central transfer chamber

Film production chamber  Unloading chamber

Unloader

Central transfer robot Loader

Load-lock chamber

Plasma CVD production line

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34. Technologies Differentiating MHI from Peers in Production of Thin-film Si Solar Cells Size Size of of substrate substrate

Film Film production production speed speed

[nm/s]

MHI:1.1m  1.4m

Efficiency Efficiency

[%]

2.0

12

1.0

11

Company B：0.56m×0.93m Company A： 0.46mx0.91m

MHI Comp- Company A any B

Productiv ity (cost)

∝

Size of substrate

Production speed

10

MHI Comp- Company A any B

Conversion efficiency

Operating Operating rate rate

[%]

Production line stopped

10 090 80 Cleaning Open Mainten 70 ance * 60 Operating Operating time time 50 w/ cleaning w/o cleaning Operating rate

Yield

 

MHI  ：100％  Company A ： 16％  Company B ： 6％  based on same production yield per film production chamber

Large area・high speed・high quality Plasma CVD

Self cleaning

¾Peers: Placing too much focus on efficiency improvement (system development entrusted to equipment makers) ¾MHI: As an equipment maker, MHI works to improve the full scope of technologies for cost reduction. All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

(MHI’s proprietary technology)

35. Large Scale Solar Power Generation System

・Name of plant：Buttenwiesen PV Plant ,Germany     ・Output：1,000kWp ・Number of panels： 10,000 (amorphous solar modules modules made by MHI) All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

36. Characteristics of MACH-30G  ・Achieved world’s highest level electric efficiency and low NOx levels. ・High reliability (developed based on the KU30 series (over 400 units were ordered)) ・Seamless customer support package (from planning to maintenance and after service)

MACH-30G Main specifications /50Hz（in brackets：60Hz）  

8MACH-30G

12MACH-30G

14MACH-30G

16MACH-30G

18MACH-30G

8

12

14

16

18

5,100 （4,900)

5,750 （5,500）

Number of cylinders

 

Cylinder bore ×piston stroke

mm

300×380

Number of revolutions

min-1

750(720）

Rated output (at power generation end)

kW

NOx

ppm

2,550 (2,450)

3,800 (3,650)

4,450 (4,250）

200 or less：converted to O2=0%

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Electric efficiency at generator end (%)

37. Efficiency of MACH-30G 60

MACH gas engine

50

Diesel 40

Conventional gas engine 30 20 10 0

10kW

100kW

1MW

Output All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

10MW

100MW

38. MACH-30G - Awards and Market Share Agency for Natural Resources and Energy (ANRE) Director-General‘s Prize

Japanese market share of gas engines (3.5∼7.5MW class)

of Japan (2002)

(FY2001(when MACH was launched) ∼FY2005) MACH-30G was awarded in the 23rd Energy Saving Machinery and Equipment Awards in the field of power generation engines for its high performance including significant improvement in efficiency and reduction in NOx/CO2/PM （Particulate matter） and other pollutants.

JGA’s Technical Award (2003) Awarded by the Japan Gas Association (JGA) for achieving high efficiency, high operating performance and high environmental performance in the area of gas fueled machinery and equipment.

MACH :720MW (80%)

All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

Others:190MW (20%)

39. MACH-30G - Orders Received 200

(MW)

(Units) (台)

886MW

Number of units (prospect) 台数(計画) 台数 Number of units (ordered) MW (prospect) MW(計画) MW MW

150

1,000

725MW

19

572MW 100

145

500

134

381MW 107 50

194MW 106MW

71

35

19 0

0 2001

2002

2003

2004

All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

2005

2006

40. Overview of MACH-30G (Example) 

Customer: Sodegaura Power Station, Nippon Steel Corporation 18MACH-30G  10Units All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

41. IGCC (Integrated Coal Gasification Combined Cycle) Air Blown IGCC is the Best System for Power Generation 1. Features (1) More than 10% lower CO2 Emission Intensity than latest USC conventional coal fired plant by Higher Plant Efficiency with Air-blown IGCC (2) Fuel Flexibility for high moisture Low Rank Coal like PRB Coal. (3) Higher Reliability with Waterwall Structure based on mature boiler experiences (4) Much Experiences in Low calorific gas firing G/T

2. 250MW-class Demonstration Plant Gasifier HRSG

Gas Clean-up

Gasifier

HRSG

Operation Room

Operation Room

GT/ST

GT/ST

Clean Coal Power R&D Co., LTD.

Gas Clean-up

Operation starts in Sep. 2007

IGCC:Integrated coal Gasification Combined Cycle Power River Basin (PRB) coal: a low rank coal with higher moisture content and lower heating value, but available at low cost because of its plentiful reserves. All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

42. IGCC (Integrated Coal Gasification Combined Cycle)  3. IGCC projects in the U.S. EPACT (Energy Policy Act; signed in Aug 2005) set measures including subsidies, tax incentives for investments, etc. → Triggering IGCC projects across the U.S.

4. Commercial Plant Performance Unit

250MW Demo. Plant

Commercial Plant (60Hz)

MW

250

500

Design Coal

−

Bituminous Coal

Bituminous Coal

Gasifier

−

Air-blown Air-blown Dry coal feed Dry coal feed

Gas Clean-up

−

Wet Clean-up Wet Clean-up

Gas Turbine

−

M701DA

M501G

%,HHV

40.5

46

Emission SOx

ppm

8

8

(16%O2)

NOx

ppm

5

5

 

PM

mg/Nm3

4

4

Item Gross Output

Net Plant Efficiency

: IGCC projects being considered

Mitsubishi IGCC ready for Commercial plants in Japan and the U.S. All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

43. MHI’s Efforts to Develop Fuel Cells

ＳＯＦＣ（solid oxide fuel cells) NEDO technology development project (2004 - 2007)

Tubular type SOFC

Development of “Combined System” with levels of 200kW

Jointly developed with J-Power

Cogeneration system for Japan Pavilion

MOLB-type SOFC Jointly developed with Chubu Electric Power

Cogeneration system for Electric Power Pavilion

MOLB：MOno-Block Layer Built

Mid-sized dispersed type power sources; Replacement for large-sized thermal power generation

Project of experimental study in Aichi World Expo 2005 (March - September)

PEFC (polymer-electrolyte fuel cell) PEFC for mobile applications

PEFC for “Urashima”, deep sea cruising AUV developed by JAMSTEC As an autonomous underwater vehicle (AUV), Urashima recorded the world’s longest continuous cruising of 317km in February 2005.

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JAMSTEC “URASHIMA”

44. SOFC Combined-Cycle Power Generation System Efficiency and Road Map IGFC 75 ＬHV %

Power Generation plant  for Utility （output：several 100 MW） Efficiency: 70%-LHV

LNG SOFC C/C

Efficiency at power generation end

70

SOFC Combined-Cycle

Power Generation plant （output：several MW）

65 C/C (1700℃ class)

IGFC

Efficiency: 60%-LHV

60

＋

LNG C/C 55

Combined-Cycle 200kW class

50

700℃ class Efficiency:50%-LHV  USC (Efficiency with output of 350kW class: 55%-LHV

IGCC USC(coal)

45

40 1990

1995

2000

2005

2010

2015

2020Year

IGCC: Integrated Gasification Combined Cycle IGFC: Integrated Gasification SOFC Combined Cycle

2005

2010

2015

USC: Ultra Super critical pressure Coal-fired plant

All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

2020Year

45. Road Map for Lithium Rechargeable Batteries Batteries for EV

For PEV 200 180 160 Energy density (Wh/kg)

EVs (fleet sales)

MHI stationaryFor EV batteries (Developed in 2005)

140 120 100 80MHI stationary batteries 60 40

For PHEV

(Developed in 1998)                 MHI batteries for mobile applications Data of batteries       (Developed in 2001) developed by peers

20 0 0

500

1000

1500

Power density

Cell batteries for EVs

Module batteries for EVs

2000

2500 For HEV

(W/kg)

Phases of development Raise performance of batteries

・Reduce cost ・Develop mass production technology

Pre-mass-production

Full-scale mass production

Stationary batteries

Stationary module batteries Power storage system Stationary battery cells

Unit w/100kWh

Electricity storage business; R&D on use of natural energies

2006

2007

2008

2009

All copyright and intellectual property regarding this material belong to Mitsubishi Heavy Industries, Ltd.

System ensuring stable supply of natural energies

46. Estimation of Fuel Cell Prices Test production facilities (current facilities) Production capacity：For approx. 60 EVs/year

Fuel cell prices (in relative values)

1

Pre-mass-production facilities Production capacity：For approx. 2,000 EVs/year

1/10

Reduce production cost; reduce materials cost Full-scale mass production facilities Production capacity：For 16,000 EVs/year

Initial-phase mass production facilities Production capacity：For approx. 8,000 EVs/year

1/20

0

Reduce materials cost

100 125 25 50 75 Fuel cell production (in 10,000 units / year)

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150

175

４７. Future of Power Generation

Ultra – Supercritical Pressure Power Plant

Secondary  Battery

Solar Power Generation

ＧＴ Ｃ／Ｃ

Hotel，Office etc…

Home

Substation Facilities

Transmission Plant

Substation Facilities

Integrated coal Gasification Combined Cycle (ＩＧＣＣ）

Secondary  Transportation Ｓｙｓｔｅｍ Battery （Train etc…）

Secondary  Battery Integrated coal Gasification Fuel Cell ｃｏmbined cycle (ＩＧFＣ）

Secondary  Battery

Wind Power Generation

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Ｂａｔｅｒｙ Car