News Releases

3/21/2012

Hitachi Announces Partnership with SaskPower on Test Facility for CO2 Capture Technology

Saskatchewan, March 20, 2012 --- Hitachi, Ltd. (NYSE: HIT/TSE: 6501, "Hitachi") announced today that the Company has agreed to collaborate with Saskatchewan Power Corporation ("SaskPower") to jointly construct a Carbon Capture Test Facility, (“CCTF"). The test facility will be a part of SaskPower’s larger “Clean Coal Project”, which is a comprehensive initiative to select and apply emerging carbon capture technologies to coal fired power plants to manage their emission of greenhouse gases.

In this project equipment to capture CO2 will be installed at SaskPower’s Shand Power Station (298MW), which is located near the city of Estevan, Saskatchewan. SaskPower and Hitachi will jointly invest 5 billion yen to cover the cost of the project. Operations of the CCTF will begin mid 2014.

While the demand for electric power is increasing in Canada, power companies are being required to implement countermeasures against global warming, including measures to suppress CO2 emissions, and to reinforce these initiatives, Canada is currently promoting the development of CCS (Carbon Capture & Storage) technology and the implementation of demonstration projects as a national strategy. SaskPower, in line with this initiative, is currently constructing a world leading, large CO2 capture and storage demonstration project at the Boundary Dam Power Station. Hitachi was selected to supply the steam turbine and generator for this carbon capture and storage demonstration project and will build the crucial system that is needed to efficiently supply the steam required for the CO2 capture and storage equipment.

Hitachi began researching and developing technology to capture CO2 in the 1990s and since then, the company has conducted demonstration projects using its own research equipment as well as domestic and overseas pilot facilities. SaskPower’s experience in integrating CCS into commercial projects combined with Hitachi’s expertise in Carbon Capture Technology will contribute to a comprehensive evaluation and demonstration of the equipment’s overall reliability, economic feasibility, and the necessary properties to scale-up to a large, commercial-scale facility. Hitachi will produce and supply its CO2 capture solvent (H3-1) and the main equipment for the facility. The Hitachi Group companies Babcock-Hitachi K.K. (President: Tetsuro Wakino) and Hitachi Canadian Industries Ltd. (President and CEO : Tom Kishchuk) at the Province of Saskatchewan will be in charge of production and supply.

Through this demonstration project with SaskPower, Hitachi will focus on achieving commercial operations, reducing costs, realizing innovative technologies, and will contribute to the realization of a low-carbon society.

Hitachi is also deepening its collaboration with the province of Saskatchewan through exchange activities sponsored by the Japan Coal Energy Center and the Coal Division of the Natural Resources and Fuel Department of the Agency for Natural Resources and Energy of the Ministry of Economy, Trade and Industry and will further endeavor to contribute to this mission.

Overview of the CCTF Demonstration Project

Amount of CO2 that is captured:

120 tons/day

Equipment Installation Site:

Shand Power Station

(Coal-Fired Thermal Power Station)

CO2 Capturing Process:

Chemical Scrubbing

Evaluation Items:

CO2 capture efficiency, energy usage, reliability, etc.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2010 (ended March 31, 2011) consolidated revenues totaled 9,315 billion yen ($112.2 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

Press Contacts

Hitachi, Ltd. Contacts:

Japan

Yuki Maeda

Hitachi, Ltd.

+81-3-5208-9324

yuki.maeda.sy@hitachi.com

US

Mickey Takeuchi

Hitachi America, Ltd.

+1-914-333-2987

masayuki.takeuchi@hal.hitachi.com