Mitsubishi Heavy Industries Ltd., Mitsubishi Corp. (UK) PLC and German partner Balcke-Duerr GmbH have been awarded a turnkey contract to build two 40-megawatt geothermal power plants for Reykjavik Energy, an electric utility owned by Iceland's capital city, Mitsubishi Heavy said Wednesday.

The order's estimated worth is around 5 billion yen.

Mitsubishi Heavy, which has sold such units in 12 countries besides Japan in the past, hopes the deal will serve as a springboard for lifting sales of its power-generation systems. The company claims the systems are eco-friendly because they do not burn fuel and therefore do not emit carbon dioxide.

The two units are scheduled to go onstream in September and November 2008, respectively, at the Hellisheidi power station, about 20 km east of Reykjavik. Mitsubishi Heavy has supplied eight such systems to the Icelandic firm in the past.

The system comprises a steam turbine, generator, condenser and cooling tower. Mitsubishi Heavy will build the turbines and Mitsubishi Electric Corp. the generators, while Balcke-Duerr will be responsible for the delivery of the condensers and cooling towers. The trade procedures will be handled by Mitsubishi Corp.