MHPS and Falcon Group Prepare to Implement Thermal Performance Upgrades on 2 M501F and 6 W501F Gas Turbines in Mexico

Falcon Group which is owned by Mitsui, Tokyo Gas, JERA and Tohoku Electric Power Executes Contract Extension with MHPS at Altamira II (M501F) and Rio Bravo II/III/IV (W501F) Plants; Thermal Performance Upgrades Result in Long-Term Services Contract Extension

Lake Mary, FL (February 13, 2019) - Mitsubishi Hitachi Power Systems (MHPS) has announced a multi-year service contract agreement with Falcon Group for the power generation company's Altamira II and Rio Bravo II/III/IV Energy Facilities, located in Mexico. The installation of the thermal performance upgrades, MHPS-TOMONI digital solutions and contract extension further demonstrates MHPS' long-term commitment to Latin America, a key growth market for the company.

As part of the agreement, MHPS will provide F4 technology and service upgrades that will increase overall reliability and availability at each of the four Falcon Group energy sites, improving the asset's service life while extending inspection intervals to 32,000 hours. MHPS will provide MHPS-TOMONI digital solutions to maximize the plant's output in alignment with Falcon Groups energy production efforts, and supplement further opportunities in the open energy market. The installation of the upgrades will commence in 2019 with completion by 2021.

The selection of MHPS service and parts solutions for the W501F - specifically the F4 upgrade - was influenced by the team's experience with the advanced class gas turbines proven technology from the M501J and G frames, which operate at much higher firing temperatures than the 501F units. Fleet wide, the F4 upgrade has achieved more than one million successful operating hours and 11,000 starts.

Notably, the MHPS F4 upgrade features several of the company's advanced technologies, such as advanced fan-shaped film cooling, enhanced cooling hole arrangement, advanced and thickened TBC, wall thickness optimization, optimized cooling pattern and usage of MHPS proven high strength alloy.

Overall, MHPS technology expertise allows customers to take advantage of decades of O&M and plant knowledge, to provide solutions such as parts upgrades or MHPS-TOMONI digital solutions in order to drive advanced analytics and adaptive control to achieve customer's business goals.

Marco Sanchez, Vice President of Service Sales at MHPS said, "Falcon's leadership and operational experience has been key in the success of this partnership. Both teams are committed to maximizing the availability of the equipment and optimizing the performance of the Total Plant."

Ramon Sanchez, Vice President of Technology at Falcon Group said, "MHPS has demonstrated over the years that they are a very reliable partner and a leader in developing state of the art 501F turbine improvements. We continue to strengthen our relationship with MHPS by extending contracts for LTSA´s at Rio Bravo and Altamira which include innovative solutions that will improve our business operation."