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MHI to License Flue Gas Carbon Dioxide Recovery Technology To GPIC in Bahrain
-- World-class Recovery Capacity of 450 Tons/Day --

No.1209
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Tokyo, December 20, 2007 - Mitsubishi Heavy Industries, Ltd. (MHI) has singed a license agreement for carbon dioxide (CO2) recovery technology with Gulf Petrochemical Industries Company (GPIC), a manufacturer of fertilizers and petrochemicals in Bahrain. GPIC will use the technology to recover CO2 from flue gas emitted at its existing petrochemical plant and utilize the captured CO2 to increase urea and methanol production. The recovery units can capture 450 metric tons of CO2 per day, one of the world's largest capacities for the chemical application. The CO2 recovery plant is slated for completion on January 2010.

The technology to be licensed by MHI recovers CO2 from flue gas emitted during the methanol production process by absorbing CO2 into KS-1 proprietary solvent, which MHI jointly developed with Kansai Electric Power Company, Inc (Kansai EP). Captured CO2 will be used as feedstock for urea and methanol synthesis processes. The technology can recover approximately 90% of the CO2 in flue gas.

GPIC was established in 1979 as a joint venture equally owned by the Government of the Kingdom of Bahrain, Saudi Basic Industries Corporation of Saudi Arabia and Petrochemical Industries Company, Kuwait. Previously MHI delivered a urea fertilizer production plant with 1,700 mtpd (metric tons per day) production capacity to GPIC in 1998. The CO2 recovery system will also be used to increase production of that plant.

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 first CDR plant, with a recovery capacity of 200 mtpd, was installed at Petronas Fertilizer (Kedah) Sdn. Bhd. in Malaysia in 1999, and it has been operating successfully. The KM CDR Process requires considerably lower energy consumption compared with other technology processes. In addition, MHI has provided technology to Indian Farmers Fertiliser Cooperative Limited (IFFCO) for two 450 mtpd CDR units for its two urea production plants. The IFFCO plants, which were completed at the end of last year, are operating successfully. Last year, MHI also signed an agreement with Ruwais Fertilizer Industries (FERTIL) of the United Arab Emirates to provide CDR technology for urea production enhancement.

In addition to urea production, CO2 recovery technology can be used 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, EOR 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.