Bloomberg News

Toshiba Wins Order to Build Gas-Fired Plant for Chubu Electric

September 26, 2012

Toshiba Corp. (6502), Japan’s biggest builder of nuclear power plants, won an order to build gas-fired power generation systems for Chubu Electric Power Co. as last year’s nuclear disaster fuels demand for alternative energy.

The power systems that use new gas turbines developed by General Electric Co. (GE:US) will be supplied to the utility’s Nishi Nagoya thermal power plant in central Japan, Toshiba said today in a statement. The order is valued at about 100 billion yen ($1.3 billion), the Nikkei newspaper reported earlier today without saying where it obtained the information.

Japanese utilities are installing gas-fired power stations to cut dependence on atomic energy as all but two of the nation’s 50 reactors remain shut after the Fukushima nuclear accident. Toshiba and GE, which began collaboration in gas turbines in 1982, will jointly explore sales opportunities for the new power systems, the statement said today.

GE’s 7F 7-series gas turbines will be combined with Toshiba’s steam turbines and generators to supply the power systems, Toshiba said.

Japan, already the world’s largest importer of liquefied natural gas, will probably need 19 percent more by 2020, according to Oslo-based Arctic Securities ASA.

Toshiba, which also produces flash memory chips, notebook computers and televisions, rose 1.2 percent to 251 yen in early trading on the Tokyo Stock Exchange.

To contact the reporter on this story: Masumi Suga in Tokyo at msuga@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net


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