In a move to capitalise on a growth market, Mitsubishi Heavy Industries (MHI) and Hitachi have announced plans for a joint venture into the distributed gas engine power generation systems business in China.
Through the transfer to Hitachi of 35% of MHI’s shares in Mitsubishi Heavy Industries Engine System (Shenzhen) Co, the companies say they will develop a diverse range of energy service solutions aimed at customers requiring power, heating, cooling and energy conservation.
The JV will be headquartered in Shenzhen, with a branch in Shanghai. In addition to sales and after-market service, the JV will carry out the gas-fired genset business, the two companies said.
China’s market for on-site power is expected to see rapid growth in the near future. Due to the nation’s increasing demand for electricity, the government has announced plans to introduce distributed gas-fired gensets with a total output of around 50 GW by 2020.