Press Information

MHI to License Flue Gas Carbon Dioxide Recovery Technology
To Indian Fertilizer Company
-- World-class Recovery Capacity of 450 Tons/Day --

No.1233
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Tokyo, April 8, 2008 – Mitsubishi Heavy Industries, Ltd. (MHI) has signed a license agreement for carbon dioxide (CO2) recovery technology with Nagarjuna Fertilizers and Chemicals Limited (NFCL), a fertilizer producer in India. NFCL will use the technology to recover CO2 from flue gas emitted from the Ammonia-I Primary Reformer at their existing fertilizer plant complex, and utilize the captured CO2 to increase the urea production. The recovery units can capture 450 metric tons of CO2 per day, one of the world’s largest capacities. The CO2 recovery plant will be constructed by Tecnimont ICB Pvt. Ltd., an Indian engineering company, with completion slated for June 2009.

The technology to be licensed by MHI recovers CO2 from flue gas emitted during the Ammonia production process, which uses natural gas as fuel, and provides the captured CO2 as feedstock for urea synthesis. Urea fertilizer production consists of two processes: ammonia production and urea production. CO2 contained in the flue gas emitted from the primary reformer during the ammonia production process will be absorbed into the KS-1 proprietary solvent, which MHI jointly developed with Kansai Electric Power Company, Inc (Kansai EP). The CO2 is then synthesized with ammonia for use as feedstock for urea production. The technology can recover approximately 90% of the CO2 in flue gas.

NFCL’s fertilizer complex is located in Kakinada, Andhra Pradesh, approximately 700 kilometers northeast of Chennai. NFCL plans to switch fertilizer feedstock from naphtha to natural gas in 2009, and anticipates that urea production volume would decrease as a result of change of the feedstock. NFCL intends to build the CO2 recovery plant to sustain and augment Urea production. NCFL views adoption of the licensed technology as an important initiative that will offer benefits not only with respect to useful utilization of flue gas CO2, which until now has been emitted into the atmosphere, but also as a welcome contribution to environmental preservation through reduction of CO2 emissions.

MHI’s CO2 recovery technology, officially known as the “KM CDR Process” (Kansai-Mitsubishi Carbon Dioxide Recovery Process), was jointly developed with Kansai EP. The KM CDR Process requires considerably lower energy consumption compared with other technology processes. The first CDR plant, with a recovery capacity of 200 metric tons per day (MTPD), was installed at Petronas Fertilizer (Kedah) Sdn. Bhd. in Malaysia in 1999, and it has been operating successfully. In 2005, MHI provided technology to Indian Farmers Fertiliser Cooperative Limited (IFFCO) for two 450 MTPD CDR units for its two urea production plants. In 2006, MHI signed an agreement with Ruwais Fertilizer Industries (FERTIL) of the United Arab Emirates to provide CDR technology with a 400 MTPD recovery capacity for urea production enhancement. Last year, the company signed a license agreement for the technology for 450 MTPD production capacity with Gulf Petrochemical Industries Company (GPIC), a manufacturer of fertilizers and petrochemicals in Bahrain.

NFCL awarded its contract to MHI in reflection of its high evaluation of the successful operation of these various plants. Today MHI continues to receive numerous business inquiries regarding the technology from diverse industries throughout the world.

In addition to urea production, CO2 recovery technology can be employed in chemical applications such as production of methanol and dimethyl ether (DME) and, in the food and beverage industries, production of carbonated beverages and dry ice. Another important application possible is enhanced oil recovery (EOR) enabling increased crude oil production; in this case, CO2 is injected into an oil reservoir suffering from low productivity.

Due to the recent surge in oil prices, demand for EOR has been rising especially sharply. Because EOR has the potential to contribute significantly to reduction of global warming gases through sequestration of CO2 into oil reservoirs, the technology is garnering intense attention globally, particularly in the Middle East, and its market is expected to expand enormously in the coming years. Going forward, MHI intends to promote its large-scale CO2 recovery facilities for EOR applications, as well as for chemical plant applications.