Feb. 18, 2016
Sumitomo Corporation
IHI Corporation

Order received from Mozambique’s state 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: Tamotsu Saito; hereinafter, “IHI”) on February 17 (local time) concluded a turnkey engineering, procurement, and construction (EPC) agreement with Electricidade de Mozambique (hereinafter, “EDM”), the Republic of Mozambique’s state-run power company, for construction of a 110MW gas-fired combined-cycle power plant in Maputo (hereinafter, “the Power Plant”).

The planned construction site for the Power Plant is located about 6km southeast of Mozambique’s capital of Maputo. This will be the country’s first gas-fired combined-cycle power plant and, when completed, it will meet about 20% of domestic power demand. Sumitomo Corporation as consortium leader will serve as the liaison for negotiations and coordination with EDM on this Power Plant, while IHI will supply the main equipment (gas turbines and generators) and be responsible for wrap up of the Power Plant. Construction is set to begin in 2016 with the aim of taking the Power Plant over to EDM in 2018. This order is valued at about 17 billion yen, which will be covered by yen-denominated loans from the Japan International Cooperation Agency (JICA). 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 make of control equipment to deliver a combined-cycle system that recovers exhaust heat via steam turbines to boost power generation efficiency.

Mozambique has attracted companies from around the world as an East African trade hub producing a wealth of natural resources. The country continues to enjoy a high rate of economic growth (7%-8% annually), spurring an extremely rapid annual rise of 10% in electric power demand. Mozambique stretches 2,000km from north to south, but its primary source of electric power is a hydro power station in the northwest. Its inadequate power infrastructure leaves the southern part of the country without direct access to power supply from the northwest, so the majority of power demand there has to be satisfied by importing power from South Africa. These circumstances have made construction of a power plant near the capital of Maputo (in the south) an issue of great urgency. With gas-fired power plants expected to become the main source of electric power as extensive gas fields are developed in future, Mozambique is in need of know-how regarding the operation of gas-fired power plants, so this project will also entail providing technical instruction in the know-how required to operate gas-fired power plants. Utilizing funding and technology from Japan, the Power Plant will contribute to the “Partnership for Quality Infrastructure” being promoted by the Japanese government and play an important role in upgrading Mozambique’s basic infrastructure.

Sumitomo Corporation has been involved in the construction (EPC) of power plants with a total capacity exceeding 50,000MW, and it will be leveraging its extensive track record and experience in fulfilling agreements to enhance its power infrastructure-related business on a global scale and help countries enjoy economic development through improved infrastructure.

IHI has a noteworthy record of performance in delivering gas turbines, coal-fired boilers, and LNG-related facilities in Japan as well as Southeast Asia and elsewhere overseas, and it will be utilizing the technical know-how it has gained thereby to provide the African market with energy systems offering excellent environmental performance as well as high efficiency and quality in order to help ensure a steady supply of energy that keeps pace with the region’s economic development.

Reference 1: Site map

Reference 2: LM6000 gas turbine combined-cycle power generation facility (image)

Corporate Communications Department, Sumitomo Corporation
News Release Contact Form