First Order Received for Coal Fired Power Plant Facilities in Indonesia

March 5, 2013

Sumitomo Heavy Industries, Ltd. (hereinafter referred to as “SHI”; President: Yoshinobu Nakamura) received an order for a coal fired power plant intended for a major national resource company in Indonesia, PT ANTAM (Persero) Tbk (hereinafter referred to as “Antam”; headquarters: Indonesia; President: Alwinsyah Lubis) from Sumitomo Corporation. This is the first order for this type of facility in Indonesia.

Antam is an Indonesian vertically integrated, export- oriented, diversified mining and metals company with activities from exploration, excavation, processing through to marketing of nickel, gold, silver, bauxite and coal. Sumitomo Corporation received the order for the construction of a new set of coal fired power plant facilities as an EPC (engineering, procurement and construction) contractor, due to the expansion plans of the plant for the nickel refining operation at Pomalaa, in the southeastern area of Sulawesi Island in Indonesia at the end of last year. SHI has been taking part in activities related to bidding by Sumitomo Corporation and officially concluded a contract with Sumitomo Corporation for the delivery of a set of power plant facilities, including a circulating fluidized bed (CFB) boiler, which is at the core of the plant, as well as boiler auxiliary equipment and installation work on site. Furthermore, SHI will fill the role of technical leader of this project.

This facility is capable of using low grade coal, which accounts for most of coal deposits in Indonesia, however their use has not progressed as fuel so far. This opportunity is believed to have come about since SHI conducted activities relating to combustion tests of low grade coal from Indonesia using CFB pilot test facility, which was fired using actual coal, as well as the company’s performances using fuels that are difficult to burn, such as low grade coal and biomass, was evaluated positively.

In CFB boiler, the combustion air is injected from the bottom and uniformly mix the fuel and efficiently combust various types of fuels. This will be the first operation for SHI in Indonesia, however Indonesia has an abundance of low grade coal, biomass fuels, such as palm waste, therefore expectations are high for future associated market expansions, utilizing such resources.

SHI will increase the sale of CFB boilers, which can effectively utilize fuels, such as inexpensive low grade coal and biomass, for power generation facilities and cogeneration facilities in the Asian market, especially in Southeast Asia, in the future.

・ Contract month: February 2013
・ Planned date for completion of construction: July 2015
・ Capacity: Power generation capacity of 30MW x 2 units (gross output of power generation)

Conceptual drawing