Mitsubishi Hitachi Power Systems Americas (MHPSA) has received a contract from Spain-based Iberdrola to supply J-series gas turbines and a steam turbine for the proposed 887MW Noroeste combined cycle power plant in Sinaloa state, Mexico.
Under the contract, Mitsubishi will supply two MHPS M501J gas turbines, each with 327MW capacity, and a MHPS TC4F steam turbine for the $400m power plant.
The contract also includes long term service agreement (LTSA).
Recently, the Mexican Comisión Federal de Electricidad (CFE) has selected Iberdrola to build, own, and operate the Noroeste power plant.
The company agreed to set up all additional facilities such as the power lines and the transformer substation to connect the power plant to the Mexican electricity grid.
The contract represents second CFE independent power producer (IPP) project for Iberdrola. The first contract was awarded for the CFE Escobedo power plant near Monterrey, Mexico in October 2015.
Mitsubishi Hitachi Power Systems de Mexico president Miguel Vallejo said: "Both utilities and IPP’s have embraced the best-selling M501J gas turbine because of its unique combination of industry-leading combined cycle efficiency approaching 62%, and proven reliability in excess of 99%.
"Iberdrola is a very important player in the Mexican Energy sector and worldwide, not only as producer but also as a technology developer, and now a strategic partner for MHPSA."
Upon commissioning by 2019, power generated from the Noroeste power plant will be sold to CFE under a 25-year power purchase agreement.
The facility is expected to generate electricity required to meet the power needs of more than three million Mexicans.
By 2019, Iberdrola is expected to have 8GW of installed power generation capacity in Mexico.
Image: A Mitsubishi-built M501J gas turbine. Photo: courtesy of Mitsubishi Heavy Industries, Ltd.