BHI announced on March 31 that it signed a contract with Fuji Electric of Japan to supply heat recovery steam generators (HRSG) for LNG combined cycle power plants worth approximately KRW 67 billion. This is equivalent to 18.2% of recent sales, and the contract period is until March 3, 2031.
Under this contract, BHI will supply one 570MW HRSG to the Ishikari Bay New Port Power Plant of Hokkaido Electric Power Company in Japan. Fuji Electric, which signed the supply contract with BHI, is one of the leading companies that is developing the heavy electric power business in Japan along with Hitachi and Toshiba.
BHI already successfully completed a 52.2 billion won HRSG supply project with Fuji Electric for the Mooka Power Plant in Tochigi Prefecture, Japan in 2014. The company explained that it decided to cooperate once again in recognition of BHI's excellent technological prowess, product competitiveness, and stable delivery compliance capabilities.
With this order, BHI's cumulative new order amount for this year has exceeded 550 billion won. In particular, excluding the supply contract for Shinhanul Units 3 and 4, all HRSG orders are from overseas, including Saudi Arabia and Qatar. With this, BHI has once again proven its status and competitiveness in the global market.
According to a report by the Institute of Energy Economics of Japan (IEEJ), Japan is actively pursuing a policy of expanding renewable energy centered on solar power generation. Combined cycle power plants are not only environmentally friendly as they can drastically reduce carbon dioxide (CO2) emissions compared to coal-fired power plants, but are also a stable power supply source that can complement the intermittency problem of renewable energy.
In particular, considering Japan's energy policy direction that makes it difficult to build new nuclear power plants, the demand for replacing and upgrading aging HRSGs to improve the efficiency of existing thermal power plants and reduce environmental impacts is expected to continue to increase.
A BHI official said, “We are delighted to have won a large-scale project in Japan this year, following last year,” and “As the largest HRSG exporter in Korea, BHI will continue to expand opportunities for additional orders and further strengthen its position in the global market.”
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