Contributing to Decarbonization of Industries

December 4th, 2020

Fumiharu Shimamoto Chief Regional Officer, Europe Power & Energy Solutions Mitsubishi Heavy Industries Group

Beyond 130 years of history, MHI Group technologies have supported Japan across rough seas.

Over one hundred and thirty years have elapsed since Mitsubishi first The history of Japan’s development is etched into MHI Group leased the government-owned Nagasaki Shipyard from the Ministry of technologies, products and services that underpin contemporary Industry in 1884. MHI Group technologies have been instrumental in society. steering Japan’s modernization and globalization.

1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Future

1873: Name changed 1950: Establishment MHI’s Progress Mitsubishi Shokai 1946 East Japan Heavy-Industries, Ltd. 1875: Name changed Dissolution

Mitsubishi’s Progress Mitsubishi Steamship Co.

1875: Name changed 1907: Established 1937: Reorganized 1943: Company name changed 1952: Mitsubishi Mail Steamship Co. Shipbuilding Division of Mitsubishi Goshi Kaisha Kabushiki Kaisha Kabushiki Kaisha Company name changed Mitsubishi Sha Mitsubishi Honsha Merger of Three Companies 1886: Name changed Mitsubishi Nippon 1917: Established 1964: Merged Mitsubishi Sha Heavy-Industries, Ltd. Mitsubishi Shipbuilding & Engineering Co., Ltd. Establishment MITSUBISHI HEAVY INDUSTRIES, LTD. Origin of Mitsubishi January 11, 1950 1952: Business departments introduced 1893: Establishment Company name changed 2014: 1870: Establishment 1934: Merged Central Japan Mitsubishi Goshi Kaisha Shin Mitsubishi Heavy-Industries, Ltd. 1970: Complete transition to Tsukumo Shokai Mitsubishi Heavy-Industries, Ltd. Heavy-Industries, Ltd. Business headquarters introduced business domains (divisions) Company Progress July 7, 1884 Foundation Lease of Government-owned Nagasaki Shipyard (Purchased in 1887) 1921: Establishment 1942: Mitsubishi Electric Manufacturing Co., Ltd Establishment 1970: Establishment 1995: Merged Mitsubishi Steel Mitsubishi Motors Corporation Mitsubishi Atomic Power Industries, Inc. 1935: Merged Manufacturing. Co., Ltd. Yokohama Dock Co., Ltd. 1952: Company name changed 1963: Establishment 1883: Name changed 1945: Merged Mitsubishi Shipbuilding Caterpillar Mitsubishi Ltd. Government-owned Nagasaki Shipyard 1928: Company name changed Mitsubishi Machine Tool & Engineering Co., Ltd. Manufacturing. Co., Ltd. 1868: Name changed Mitsubishi Aircraft Co., Ltd. Government-owned Nagasaki Iron Works 1921: Company name changed Mitsubishi Internal Combustion Engine Co., Ltd. 1857: Construction begins Nagasaki Forge of Tokugawa Shogunate 1920: Establishment 1950: Establishment Mitsubishi Internal Combustion Engine Manufacturing. Co., Ltd. West Japan Heavy-Industries, Ltd.

・ Sakuradamon ・ Abolition of the Han ・ Sino-French War ・ First Sino-Japanese ・ Anglo-Japanese ・ Japanese-American ・ Great Kanto ・ Manchurian Incident (1931) ・ Pacific War Begins ・ San Francisco Peace ・ Japanese Trade ・ Transition to Yen ・ Tohoku and ・ Gulf War (1991) ・ September 11 ・ Tohoku Earthquake and Incident (1860) System (1871) (1884) War (1894) Alliance Signed Treaty of Commerce Earthquake (1923) ・ Withdrawal from the League of (1941) Treaty Signed (1951) Liberalized (1962) Floating Exchange Joetsu Shinkansen ・ Law Enacted Attacks in U.S. Tsunami Disaster (2011) ・ American Civil War ・ Railway Between ・ Cabinet System ・ Treaty of (1902) and Navigation ・ Showa Financial Nations (1933) ・ Atomic Bombing of ・ Security Treaty Between ・ Japan Joins the Rate System Lines Opened Concerning (2001) ・ Tokyo Skytree Opened (1861) Shinbashi and Established (1885) Shimonoseki Signed ・ Russo-Japanese Signed (1911) Crisis (1927) ・ February 26 Incident (1936) Hiroshima and Nagasaki the U.S. and Japan Organisation for (1971) (1982) Cooperation for ・ Lehman Brothers (2012) ・ Namamugi Incident Yokohama Opened ・ Meiji Constitution (1895) War Begins (1904) ・ World War I Begins ・ Universal Male ・ Second Sino-Japanese War (1937) (1945) Signed (1951) Economic Co-operation ・ Sino-Japanese ・ Japan National United Nations Bankruptcy (2008) ・ Mt. Fuji Named World (1862) (1872) Promulgated(1889) ・ Gold Standard ・ Railway (1914) Suffrage ・ National Mobilization Law Issued ・ Dissolution of the ・ Japan Joins the and Development Diplomatic Railways Division Peacekeeping ・ Hayabusa Returns Cultural Heritage Site Chronology of ・ Restoration of ・ Land Tax Reform ・ First Imperial Diet Established (1897) Nationalization ・ Russian Revolution Implemented for the (1938) Zaibatsu (1945) International Monetary (OECD) (1963) Relations and Privatization Operations (1992) from Asteroid (2013) Imperial Rule (1873) Session Held Completed (1907) (1917) First Time (1928) ・ World War II Begins (1939) ・ Constitution of Japan Fund (1952) ・ Tokaido Shinkansen Normalized(1972) (1987) ・ Great Hanshin Itokawa (2010) ・ Tokyo Chosen to Host Events (1867) ・ Sword Abolishment (1890) ・ High Treason ・ World War I Ends ・ Great Depression Promulgated (1946) ・ Japan Joins the United Line Opened (1964) ・ Okinawa Returned ・ Seikan Tunnel Earthquake (1995) ・ Expo 2010 2020 Olympics (2013) ・ Meiji Restoration Edict (1876) Incident (1910) (1918) Begins (1929) ・ Korean War Begins Nations (1956) ・ Tokyo Olympics Held to Japan (1972) Opened (1988) ・ Nagano Olympics Shanghai China (1868) ・ Satsuma Rebellion ・ League of Nations ・ London Naval (1950) ・ European Economic (1964) ・ Oil Crisis (1973) ・ Great Seto Bridge Held (1998) Held (2010) ・ Suez Canal (1877) Established (1920) Treaty Signed Community ・ Japan Hosts Expo ’70 ・ Lockheed Bribery Opened (1988) ・ 26th G8 Summit Opened (1869) (1930) (Now the EU) (1970) Scandal (1976) ・ German Held in Okinawa Established (1958) Reunification (2000) (1990)

Thermal Power Systems Thermal Power Systems  MITSUBISHI POWER, LTD. 1. Gas Turbine Combined Cycle (GTCC) Power Plant/Tohoku Electric Power Co., Inc. Sendai Thermal Power Plant No. 4 (Japan) 2. Steam Power Plant/JERA Co., Inc. Hitachinaka Thermal Power Station No. 1, No. 2 (Japan) 3. Integrated coal Gasification Combined Cycle (IGCC) Power Plant/Joban

1 2 3 4 5 6 Joint Power Co., Ltd. Nakoso Power Plant No. 10 (Japan) 4. Geothermal Power Plant/Reykjavik Energy Hellisheidi Geothermal Power Plant (Iceland) 5. Aero-derivative Gas Turbine FT8® MOBILEPAC® 6. LP Steam Turbine Rotor with 54-Inch Blades for Nuclear Power Plant 7. M501J Gas Turbine 8. 1,120 MVA Turbine Generator 9. Flue Gas Desulfurization Plant/Kozienice Power Plant (Poland) 10. Solid Oxide Fuel Cell (SOFC)/Micro Gas Turbine (MGT) Hybrid System  TURBODEN S.P.A. 7 8 9 10 11 11. Organic Rankine Cycle (ORC) Power System

Offshore Wind Power Systems Marine Machinery Offshore Wind Power Systems  MHI VESTAS OFFSHORE WIND A/S 12. MVOW Platform¦ Off shore Wind Turbine (Belgium) 13. MVOW Platform¦ Off shore Wind Turbine (Denmark) 14. MVOW Platform¦ Off shore Wind Turbine (Germany) Marine Machinery  MITSUBISHI HEAVY INDUSTRIES MARINE MACHINERY & EQUIPMENT CO., LTD. 12 13 14 15 16 15. MET Turbocharger 16. Ultra Steam Turbine (UST) Plant Aero Engines 17. Auxiliary Boiler 18. Fin Stabilizers 19. Steering Gear Aero Engines  MITSUBISHI HEAVY INDUSTRIES AERO ENGINES, LTD. 20. V2500 Series (Turbofan)

17 18 19 20 21 22 21. Trent Series (Turbofan) 22. PW1000G Series (Turbofan) 23. MRO: Maintenance, Repair and Overhaul Compressors 24. TS1 (Turboshaft) Engine, Output Power: 884 SHP [Observation Helicopter OH-1] Compressors  MITSUBISHI HEAVY INDUSTRIES COMPRESSOR CORPORATION 25. Cracked Gas Compressors and Steam Turbines for Ethylene Plant 26. Main Gas Compressor Trains for FPSO 23 24 25 26 27 28 27. Product Gas Compressors and Steam Turbines for PDH Plant 28. Rotor of Steam Turbines

Commercial Ships Commercial Ships  MITSUBISHI SHIPBUILDING CO., LTD. 1. Ferry, SETTSU 2. Cargo-passenger Ship, OGASAWARA MARU 3. RO/RO Ship, HIMAWARI 8 4. Marine Resources Survey Ship, HAKUREI 5. Patrol Vessel, SHUNKO

1 2 3 4 5 6. LPG Carrier, FUTURE ENERGY 7. SOx Scrubber Systems for Large Output Engines 8. SOx Scrubber Systems for Small to Medium Output Engines Marine Structures 9. LNG Fuel Gas Supply System (FGSS) Marine Structures  MITSUBISHI HEAVY INDUSTRIES MARINE STRUCTURE CO., LTD. 10. KAMI-GOTO National Oil Stockpiling Site Chemical Plants  6 7 8 9 10 MITSUBISHI HEAVY INDUSTRIES ENGINEERING, LTD. 11. Ammonia and Methanol Co-production Plant (Tatarstan/Russia) 12. Ammonia/Urea Plant (Malaysia) Chemical Plants 13. Methanol Plant (Venezuela) 14. Polyethylene Plant (Mexico) 15. Acrylic Acid Plant (Bashkortostan/Russia) 16. LNG Receiving Terminal (Niigata, Japan)

17. CO2 Capture Plant (Qatar) 18. CO2 Capture Plant for EOR (U.S.)

11 12 13 14 Transportation Systems  MITSUBISHI HEAVY INDUSTRIES ENGINEERING, LTD. Transportation 19. AGT for Tokyo Yurikamome Systems 20. Macau LRT 21. Tampa International Airport APM (U.S.) 22. Super AGT 23. Urban Transportation System (Doha Metro) 24. High-speed Rail (Taiwan)

15 16 17 18 19

20 21 22 23 24

Gas Turbine Power Plant CO2 Capture Liquefied CO2 Carrier

LNG Carrier Natural Gas Liquification Train

 The world’s largest CO2 capture plant on coal-fired flue gas has been under commercial operation since December 2016  Supported by DOE (U.S. Department of Energy) grant program (CCPI Round 3) and Japanese government finance (JBIC / NEXI)

NRG WA Parish Power Plant Absorber Plant location (Thompsons, TX) Petra Nova – partnership between NRG Energy and JX Nippon Oil & Gas Project owner Cooling Tower CO Compressor

₂ Plant scale 240 MWeq 4,776 TPD CO capacity 2 (1.4 MMtonne/year) Regenerator CO2 conc. 11.5 mol%-wet

CO2 removal 90%

Flue Gas Quencher

Flue Gas Duct *U.S. Department of Energy “W.A. Parish Post-Combustion CO2 Capture and Sequestration Project Final Environmental Impact Statement Volume I” (Feb, 2013), DOE/EIS-0473

Creating Green Hydrogen Value Chain

Leading position in floating offshore wind

● Under Operation: • Windfloat Atlantic V164-8.4 MW x 3 (25.2 MW) Portugal, 2020

● Under Construction: • Kincardine Offshore Windfarm V164-9.5MW x 5 (47.5MW) / UK, 2020

● Preferred Supplier: • Groix & Belle-Ile / V164-9.5 MW x 3 (28.5 MW) France • EFGL V164-10.0 MW x 3 (30.0 MW) France • EolMed V164-10.0 MW x 3 (30.0 MW) France,

Creating Green Hydrogen Value Chain

Site: Velika Ciglena, Croatia Customer: MB Holding Start-up: 2018 Configuration: power only ORC power: 17.5 MWe Liquid brine + steam: 171 °C

Creating Green Hydrogen Value Chain

• HydrogenPro aims to be a world leading designer and supplier of alkaline electrolyser technology plants and solutions that meet the highest standards for safety, reliability and long lifetime

• HydrogenPro was established in 2013

• Headquarter in Porsgrunn, Norway

• Public listed company on Merkur Market at Oslo Stock Exchange

• Mitsubishi Heavy Industries acquired 9.6% of HydrogenPro in October, 2020

Creating Green Hydrogen Value Chain

Leading EPC Contractor for Ammonia Plant Authorized Licensee of Haldor Topsoe Ammonia Technology Business Development of Blue / Green Ammonia Projects

14.3% share world wide

(2008-2018, contractors share for ammonia plant, Capacity-based)

Leading EPC Contractor for Methanol Plant Mitsubishi Methanol Process & Haldor Topsoe Methanol Technology Business Development of Green Methanol Projects

14.0% share world wide

(2000-2018, contractors share for methanol plant, Capacity-based)

The World’s Leading DRI Production Process

NEAR FUTURE (TRANSITION): FUTURE: NG/H2 based DRI + EAF H2 DRI + EAF Proven technology available today

Immediate CO2 reduction of ~50% vs. BF/BOF route

Flexibility to use hydrogen as it becomes available (up to 100% of the reductant, source can be on-site or external)

Natural gas + Hydrogen 3 Natural Hydrogen: 650 Nm /tDRI (58 kg/tDRI) Feed Gas (as % of energy from external H2) Hydrogen Gas For 2.0 Mt/y MIDREX Plant: 20% 50% 70% → approx. 162,500 Nm3/h (14,625 kg/h) → 800 MW electrolyzer capacity required CO2 emissions (kgCO2 / tDRI) 500 400 250 150 From heater burners only

The Next Generation DRI Production Process

HYFOR is a new developed direct reduction process for any type of iron ore concentrate (hematite and magnetite) Iron ore concentrate MAIN INPUT – direct use of pellet From lab scale via pilot plant to industrial scale feed concentrate – Typical grain size: 100% < 150 µm Pilot plant in Austria Reducing gas Industrial plant – Hydrogen Start up: Q1 2021 (58 kg/tDRI MAIN BENEFITS Testing phase: No pelletizing − Test of different iron ore fines. required + − Material tests of concentrates of High oxide yield due customers interested in this new to dry dedusting and recycling of oxide dust technology for iron ore reduction. CO2 free ironmaking After successful testing, industrial by use of hydrogen plants will be built for lead High reduction rate due to high particle customers. Module size: 250,000 t/a surface

Advanced Class Gas Turbines for Deep Decarbonization

Mits u b is h i Pow e r “JAC” Gas Turbine

GT/ CC M701JAC (50Hz) 5 7 4 MW / 8 4 0 MW M501JAC (60Hz) 435 MW / 630 MW

High Efficiency Hig h Re lia b ility Fu e l Fle xib ility Achieved 64% CC efficiency Ach ie ve d 9 9 .5 % re lia b ility b y Gas Turbine can be fueled by w ith - High pressure compressor (25:1) - Over 1070k operation hours - Fos s il fu e l ( Na t u ra l Ga s , Oil) - Enhanced air-cooled combustor - Ordered: 76 GT units, - Clean fuel (Hydrogen) - Advanced TBC/Aerodynamics Commercial operation: 45 GT units (J Series as of September 2020)

H2M Project - Towards clean and sustainable hydrogen economy

Turbine Model M701F Power Output 440 MW

CO2 reduction Up to 2 Mt/year*

Location Eemshaven, The Netherlands

Th e g oa l is t o Kick-start H2 economy by using Blu e H2 for Hydrogen (100%) firing in CCGT by 2025, and gradual transition to Green H2 .

Development of hydrogen demand by H2M will assist realization of hydrogen infrastructure.

*Expected CO2 emission reduction reaches up to 2Mt/year including use of Hydrogen in Transport, Industry and Housing.

Source and courtesy Vattenfall