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Toshiba to Start Marketing World's Most Advanced Combined Cycle Thermal Power Generation Plant

8 July, 2003

H SystemTM Achieves New Levels of Performance While Reducing Emissions

Tokyo -- Toshiba Corporation today announced that it would start marketing combined cycle power plants incorporating the H SystemTM focusing on the Japanese market under a previously announced risk and revenue sharing participant (RSP) agreement with GE Power Systems. H System, which GE announced in 1995, is the world's largest and most powerful single-shaft combined cycle system and the most efficient means of thermal power generation. Toshiba has been cooperating with GE in the development, production and design of the H System since 1998. Following the successful completion of a comprehensive series of field tests of the H System at the Baglan Bay Power station in the U.K., Toshiba will initiate marketing of power plants incorporating the H system in the last quarter of 2003, working in close cooperation with GE.

In a combined cycle system, exhaust heat from a gas turbine produces steam that drives a steam turbine and generates additional electricity. H system offers much greater generating efficiency than other thermal power generation systems, and also reduces emissions into the environment. Combined cycle systems prior to the H System achieved a firing temperature at the gas turbine inlet -- a key factor of thermal efficiency -- of 1300. The H System, the world's largest single-shaft gas turbine combined-cycle system, raises the temperature to the 1500 class, and is designed with the capability to achieve 60% thermal efficiency.

The first H System was shipped by GE to Baglan Bay Power Station Cardiff, South Wales in the UK in December 2000 and comprehensive field tests to evaluate its performance started in November 2002. As GE's alliance partner, Toshiba manufactured components of the steam turbine of the unit and sent personnel working with GE team during construction, commissioning and validation testing that was completed May 2003. The unit has operated at a variety of points, including full baseload conditions, and has recorded output of up to 530 megawatts at 7. Following a planned outage for instrumented component replacement, the plant will start long-term commercial demonstration in September of this year.

Toshiba and GE signed a comprehensive RSP agreement for the H System in 1998. Under the terms of the agreement, the participants share risk and revenue in proportion to their respective production scope. GE has system integration and performance responsibility for the H System, designs and manufactures the gas turbines, and supplies the integrated systems controls for the power train. Toshiba manufactures Toshiba-designed steam turbines and generators along with GE-designed compressors.

Japan is seen as one of the largest potential markets for the H System, and GE Power Systems already has a confirmed order from the Tokyo Electric Power Company (TEPCO) for supply of three H Systems at TEPCO's Futtsu Thermal Power Station Group 4 project. They are expected to start to come on-line in 2008. Under RSP agreement, Toshiba will manufacture Toshiba-designed steam turbines and generators along with GE-designed compressors. Working in close cooperation with GE, Toshiba will further promote marketing operation of thermal power plants incorporating the H System throughout Japan.

Features of the H SystemTM

1. World's highest thermal efficiency -- 60% platform
Typical combined cycle gas turbines use an air-cooling system for cooling the gas turbine hot parts. The H System features a closed-loop steam cooling system in which steam is used to cool the gas turbine hot parts and improve operating efficiency, providing higher firing temperature required for increased efficiency at the gas turbine first stage inlet. The exhaust heat from the gas turbine is then used to drive the steam turbine, which generates additional power, thus further increasing thermal efficiency. The H System offers the efficient means of thermal power generation.
2. Better operating economics
Fuel represents the largest single cost of running a power plant, and an efficiency increase of even one percentage point can reduce operating costs by around 2 billion yen over the life of a typical gas-fired combined-cycle plant in the 400MW-500MW range. With the H System, improvements as high as two to three percent can be expected. In addition, the H System's greater power density achieves 45% more output capacity per square foot.
3. Outstanding environmental characteristic
The H System's increased thermal efficiency cuts CO2 emissions. The closed-loop steam cooling system permits higher firing temperatures at the gas turbine first stage inlet that increase operating efficiency while retaining combustion temperatures at levels consistent with low NOx emissions.

Note: H SystemTM is a trademark of General Electric Power Systems.

Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.

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