Toshiba Concludes Package Deal Agreement on Geothermal Power Generation Projects with Turkey's Zorlu Energy Group

Toshiba Corporation (TOKYO: 6502) today announced that it has concluded a package deal agreement (PDA) with Zorlu Energy Group, an independent power producer and member of Turkey's Zorlu Holdings, for the supply of steam turbines and generators (STGs) for geothermal power plants that Zorlu Energy Group develops to construct in Turkey.

Under the terms of the PDA, Zorlu Energy Group will investigate steam flow, pressure levels and so on in three locations where Zorlu Energy Group plans to construct plants by October 2020, and if the results of survey meet the agreed terms and conditions, Toshiba is to exclusively discuss and negotiate for supply of STGs for all three plants.

Commenting on the contract, Mr. Takao Konishi, Vice President of the Thermal & Hydro Power Systems & Services Division in Toshiba's Energy Systems & Solutions Company said, "Toshiba and Zorlu Energy Group have successfully been working together on Unit 1, 2 of the Kizildere III Geothermal Power Plant and Alasehir Geothermal Power Plant and I am certain that the excellent performance and advanced technology of our STG can contribute even more to geothermal power supply in Turkey.”

Energy consumption in Turkey is growing fast, driven by population growth and economic development, and both the government and the private sector are promoting projects to increase capacity. Toshiba concluded a memorandum of understanding (MOU) with Zorlu Energy Group in January 2016, covering construction of geothermal, thermal and hydro power plants.

Toshiba has an unrivaled record in the global geothermal power market. It delivered Japan's first commercial-use geothermal steam turbine and generator in 1966, and since then has delivered 54 turbines around the world, with a total capacity of 3,519 megawatts. As the source of approximately 23%^* of the world's installed geothermal capacity, Toshiba is the global top supplier. Toshiba will continue to promote high-efficiency STGs for geothermal plants in Turkey, East Africa, South America and other promising markets, where electricity demand is expected to increase in the future.

*Source: Bloomberg New Energy Finance, Feb 2017

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