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Mar. 16, 2017
Sumitomo Corporation
IHI Corporation

Contract Signing with Mozambique’s Public Power Company for Construction of Gas-fired Combined Cycle Power Plant

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President & CEO: Kuniharu Nakamura) and IHI Corporation (Head Office: Koto-ku, Tokyo; President & COO: Tsugio Mitsuoka; hereinafter, “IHI”) on March 15 (Japan time) signed with Electricidade de Moçambique (EDM), the state-run public power company of the Republic of Mozambique (hereinafter, “Mozambique”), an EPC* contract for a gas-fired combined cycle power plant (generation capacity: 100MW; hereinafter, “the Power Plant”) in Temane, Inhambane Province, Mozambique.
 
The Power Plant’s proposed construction site is located about 700km northeast of the capital city of Maputo. With a generating capacity of 100MW, the Power Plant is expected to meet about 10% of Mozambique’s domestic power demand. Sumitomo Corporation as consortium leader will serve as the negotiating and coordinating liaison with EDM, while IHI together with its affiliate company Jurong Engineering Limited will supply the main equipment for the Power Plant (gas turbines and generators), carry out civil engineering, equipment installation, and electrical engineering work onsite, and coordinate the construction of the Power Plant as a whole, with the aim of starting construction in 2018 and completing it in 2021.
 
Last August Sumitomo Corporation concluded a memorandum with EDM on the development of the Power Plant at the 6th Tokyo International Conference on African Development (TICAD VI) held in Nairobi, Kenya, leading to the signing of the EPC contract. As announced in February of last year, Sumitomo Corporation and IHI are involved with Mozambique’s first gas-fired combined cycle power plant in Maputo, currently under construction with a target completion date of 2018. The Power Plant will be the second gas-fired combined cycle power plant constructed in Mozambique. A 12MW gas-engine power plant in Temane owned by EDM is already in operation, and the Power Plant will be constructed as an extension of this existing facility. The expansion of power generation capacity will make it possible to supply power to surrounding cities such as Beira, a port city with rapidly growing power demand.
 
IHI will put together a power generation package for the Power Plant using world-class 40MW aero-derivative LM6000 gas turbines developed and manufactured by General Electric with IHI’s participation, and combine these with its own products of control equipment to deliver a combined-cycle system that recovers exhaust heat via steam turbines to boost power generation efficiency.
 
Companies from around the world are moving into Mozambique, an East African trade hub and a natural resource-rich country whose economy continues to grow at a high rate of 7%-8% per year. Coupled with that, power demand has also been shooting up at a rate of 10% annually. Although the country covers an extensive territory stretching 2,000km north to south, Mozambique relies primarily on hydroelectric power plants in the northwest for its electric power, and the construction of new power plants has become an issue of great urgency. The large-scale gas fields available for development make it likely that gas-fired power plants will one day become the primary source of electric power, thus necessitating greater know-how on operating gas-fired power plants. Technical instruction on operating gas-fired power plants will be provided mainly by IHI at the previously-built power plant in Maputo and the new Power Plant, with after-sale equipment servicing and other support provided across the entire life cycle. The Power Plant will contribute to the “Partnership for Quality Infrastructure” being promoted by the Japanese government, and Japanese funds and technology will be utilized to help improve Mozambique’s basic infrastructure.
 
Sumitomo Corporation has been involved in the construction (EPC) of power stations worldwide yielding a total capacity of about 50,000MW, and it will leverage its long track record of successfully completed agreements and its experience to enhance its electric power-related business on a global scale, thereby contributing to the economic development of countries across the planet through infrastructure improvement.
 
IHI has delivered gas turbines, coal-fired boilers, and LNG-related facilities to numerous locations in Japan as well as in Southeast Asia and other locations overseas, and it will put to good use the technical know-how gained thereby to provide the African market with energy systems offering outstanding efficiency, quality and environmental performance, and to help ensure stable supplies of energy to power the region’s economic development.

*EPC: Engineering, Procurement and Construction

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