Mitsubishi Corporation to Participate in Natural Gas-Fired Power Generation Project in Pennsylvania

Mitsubishi Corporation (MC) has reached an agreement with US-based independent energy company, Tenaska, to develop, own and operate a natural gas-fired power generation project in Pennsylvania in the U.S. Working through its 100% subsidiary Diamond Generating Corporation (DGC), MC will hold a 50% equity share in the project while Tenaska, the developers, will hold 50%.

 

The project involves the construction and operation of a natural gas-fired combined cycle power plant with a capacity of 925 MW in Westmoreland County in Pennsylvania, about 60 kilometers southeast of Pittsburg. The plant will supply electricity to the PJM market¹, the largest electricity market in the U.S., and is scheduled to commence commercial operations in 2019. The project will use two reliable, highly efficient Mitsubishi Hitachi Power Systems’ gas turbines.

 

DGC is already responding to the growing demand for a stable supply of clean energy in the US though the nine natural gas-fired power plants and two windfarms it currently owns. The construction of natural gas-fired power plants has gained momentum in the U.S., particularly in the Northeast, due to enhanced environmental regulations and increasing shale gas supply, which has also sped up moves to replace old coal-fired power plants with natural gas-fired ones. This project is DGC’s second in the U.S. Northeast following the start of construction at its natural gas-fired power plant being built in the state of New York.

 

While contributing to the stable supply of clean energy in the U.S. through this project, MC will continue to pursue the development of its power generation business globally as part of the general effort to tackle the issue of electricity demand worldwide.

 

1. PJM market: an electricity market which covers Washington DC and the whole or part of 13 states in the U.S., including Pennsylvania, New Jersey and Maryland.

 

(1) Nameplate Capacity :  925MW

(2) Generation Type :       Natural Gas Combined Cycle Gas Turbine

(3) Member :                     DGC 50% / Tenaska 50%

 

(1)  Head Office          ： 3-1, Marunouchi 2-Chome, Chiyoda-Ku, Tokyo 100-8086, Japan

(2)  Year Established  ： 1954

(3) Main Business Activities：   MC is a global integrated business enterprise that develops and operates business across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC’s current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods.

(4)  Representative     ： Takehiko Kakiuchi (President and CEO)

 

(1)  Head Office          ： 633 West 5th Street, Suite 1000, Los Angeles, CA

(2)  Year Established  ： 1999

(3) Main Business Activities：   DGC is an Independent power producer in the U.S.

(4)  Representative     ： CEO Satoshi Hamada

 

(1)  Head Office          ： 14302 FNB Parkway, Omaha, NB

(2)  Year Established  ： 1987

(3) Main Business Activities：    Tenaska is an independent power producer in the U.S. Affiliates market natural gas and electric power and are involved in private equity investment management; natural gas exploration and production; and electric transmission development.

(4) Representative      ： Vice Chairman & CEO  Jerry K. Crouse