Press Information

MHI to Purchase CO2 Emission Credits
From A 45 MW Wind Power Generation Project in Western China

No.1199
Print

Tokyo, October 2, 2007 - Mitsubishi Heavy Industries, Ltd. (MHI) has signed an agreement with Ningxia Electric Power Group Co., Ltd. (NXEPG), a Chinese electricity provider, under which MHI will purchase emission credits generated from a Clean Development Mechanism (CDM) project. MHI will purchase emission credits obtained from a wind farm to be built and operated by NXEPG. MHI plans to purchase credits of approximately 330,000 tons over a five-year period.

The wind farm is currently being built in Wuzhong City, Ningxia Hui Autonomous Region (NHAR) in western China, as the first phase of the Ningxia Taiyangshan Wind Farm Project (45 MW). The wind farm will consist of 60 wind turbines, 750 kW each, manufactured by Goldwind Science and Technology Co. Ltd. of China. It is slated to go on-stream in May 2008.

NXEPG is a midsized electricity provider established in June 2003. The company, headquartered in Yinchuan, NHAR, has generation capacities of 1,400 MW in thermal power and 112.2 MW in wind power. MHI has licensed production technology to NXEPG of its MWT 62/1.0 wind turbine (also known as MWT-1000A), MHI's best-selling wind turbine, which has a rated power output of 1 MW. NXEPG is considering adoption of the MWT 62/1.0, for the wind farm project's second phase. Also, MHI is aiming to obtain CDM-applied emission credits from the latter project.

CDM is one of the mechanisms incorporated in the Kyoto Protocol, under which advanced countries that invest in GHG reduction projects in developing countries are able to utilize credits for reduced GHG emissions to help achieve their own reduction targets. Separately, MHI is taking procedures to obtain emission credits through Joint Implementation (JI), another Kyoto Protocol mechanism, by investing in a wind turbine power generation project in Bulgaria.

MHI has committed to reduce its GHG emissions by 6% from the level of 1990 by 2010, and it has been conducting a variety of company-wide activities to achieve this target, including fuel switching, electricity conservation and the introduction of energy-saving equipment. The company will continue to make concerted efforts to prevent global warming by purchasing emission credits in addition to its own in-house initiatives.