Geothermal energy development agreed upon by MHI, Reykjavik

April 15, 2010

Source: Mitsubishi Heavy Industries, Ltd.

Mitsubishi Heavy Industries, Ltd. (MHI) and Reykjavik Energy (Orkuveita Reykjavikur: OR), a geothermal electricity producer and multi-utility provider in Iceland, have agreed on joining forces in the development of geothermal energy opportunities globally. Guðlaugur Sverrisson, Chairman of OR, Hjorleifur B. Kvaran, the Icelandic company's CEO, and Ichiro Fukue, Senior Executive Vice President of MHI, today signed a memorandum of understanding (MOU) in Tokyo.

OR, one of the world's leading geothermal power generation companies, is looking to promote geothermal energy use globally and has already begun development activities in Africa and elsewhere. With conclusion of the MOU, MHI will now participate in OR's initiative and jointly explore geothermal power generation projects worldwide. Specifically the two companies will collaborate in activities involving identification and verification of geothermal power generation potential, project launch support, development and supply of major equipment, preparation of power plant operation and management guidelines, etc.

The two companies also agreed to collaborate in green energy projects within Iceland, including production of synthetic fuel as a clean alternative fuel for transportation such as ships, and the establishment of an infrastructure for verification testing of electric vehicles (EV). These projects are part of Iceland's various undertakings to realize a zero emissions society, i.e. 0% hydrocarbon fuel emissions, by 2050.

MHI decided to contribute to Iceland's clean energy policy and, together with Mitsubishi Corporation, signed an MOU with the Icelandic government in September 2008. Since then MHI has cooperated in studies of dimethyl ether (DME) production from gas associated with geothermal power generation and the establishment of an EV verification testing infrastructure. The latest MOU on collaboration will further accelerate these initiatives.

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