Japan's Mitsubishi Heavy Industries Ltd. said Thursday it reached an agreement with Mexico's Federal Electricity Commission, or CFE, to build a 50 MW geothermal power plant in the western Mexican state of Michoacan.

The facility, which will be completed in December 2014, will be the twelfth geothermal power plant delivered by Mitsubishi Heavy Industries to Mexico, the Japanese company said in a statement.

The power plant is part of the Los Azufres III project, which the Japanese company has provided with engineering, manufacturing, acquisition and installation services.

Mitsubishi Heavy Industries will be supplying a steam turbine for the power plant that will be manufactured by subsidiary Mitsubishi Electric.

The deal will help expand Mitsubishi Heavy Industries' business in Mexico, which is No. 5 in the world in terms of geothermal resources.

The new plant, which is the fifth built by Mitsubishi in the Los Azufres III complex, will allow the CFE to meet rising demand for electricity due to economic growth.

Mitsubishi Heavy Industries is one of the world's leading manufacturers of geothermal power systems. EFE