Mitsubishi Heavy Industries (MHI) has signed a deal with China Huadian Electric Research Institute to collaborate on a natural gas fired distributed generation system.

The collaboration aims at expanding the use of a high-efficiency gas engine cogeneration system which generates and supplies both heat and power. MHI will oversee the technology development and China Huadian will be responsible for the demonstration and realisation of business models of the system.

Both companies will select an appropriate project in China and launch a feasibility study of distributed generation system commercialisation.

China’s installed natural gas fired generation capacity in 2011 was 32 650 MW, or 3.1 per cent of total generation capacity. China has targeted natural gas fired distributed generation in 1000 locations in the country’s 12th Five-Year Plan, and the National Development and Reform Commission has announced a plan to introduce a total of 50 000 MW natural gas fired distributed generation systems by 2020.