The US unit of Mitsubishi Hitachi Power Systems has secured a turbine delivery contract from Spanish Iberdrola for the 850MW CFE Noreste combined cycle power plant in Mexico.

Under the deal, Mitsubishi Hitachi Power Systems Americas (MHPSA) will be supplying two M501J gas turbines and one steam turbine for the facility.

Located in the municipality of Escobedo in Nuevo León state, the facility will be one of the largest combined cycle power plants in the country when operational. It is expected to meet the growing energy demands in north-eastern Mexico.

MHPSA president and CEO David Walsh said: "As the pioneer in Advanced Technology Gas Turbines (ATGT), the MHPS awarded and installed ATGT fleet is 53% larger than the total combined fleet of all other OEMs.

"It will add significantly to that region’s ability to power current and future needs.

"Iberdrola’s decision to select the M501J was strongly influenced by the sizable commercial fleet already in operation, along with the turbine’s unmatched reliability and efficiency. It will add significantly to that region’s ability to power current and future needs."

MHPSA will be manufacturing the two M501J gas turbines for Noreste at its Savannah Machinery Works unit in Georgia.

Iberdrola secured the development contract for the facility from the Mexican Government in September.

The firm is expected to start construction of the power plant early next year and complete it by July 2018.

Once commissioned, the project will be supplying power to the Mexican Federal Electricity Commission (CFE) at fixed capacity charges under 25-year power purchase agreement.

Image: A combined-cycle power plant located at La Laguna in Mexico. Photo: courtesy of Iberdrola, SA.