Corporate Information

Press Release (Jun 21,2007)
Participation in Chilean Biomass Power Generation CDM Projects -TEPCO to purchase carbon credits (CER) to be produced under the biomass power generation CDM projects using woody biomass as fuel-
The Tokyo Electric Power Company, Incorporated (TEPCO) has concluded 
a Certified Emission Reductions Purchase Agreements with the Chilean 
integrated forest product company, Arauco (Note 1), today. Accordingly, 
TEPCO purchases Certified Emission Reductions generated by the two 
biomass power generation CDM (Note 2) projects that Arauco has been 
carrying out.

Arauco has built two power plants, each of which generates 30MW using 
woody biomass (sawdust, bark, mill ends, etc.) as fuel in each of their 
pulp/saw mills in the Nueva Aldea Industrial Complex and the Trupan 
Industrial Complex in the 8th Region of Chile, in order to supply 
electricity to the local electric system Central Interconnected System 
(Sistema Interconectado Central [SIC] (Note 3)) as well as supplying 
electricity and heat to those two pulp/saw mills.

The effective use of woody biomass, which was disposed of unused, 
can reduce methane gas (Note 4) generation caused by decay or open-air 
burning. In addition, the biomass power generation can provide all 
the electricity consumed for the two mills and part of the electricity 
required for the local electric system, as well as reducing fossil 
fuel consumption. Consequently, the two projects will be expected to 
reduce greenhouse gas emissions of approximately 4.4 million tons 
(in term of carbon dioxide) for the period from 2003 through 2025.

TEPCO purchases approximately 480,000 tons of CERs that the UN´s CDM 
Executive Board has issued for the two projects. For more information, 
see the attached sheets.

TEPCO will take the necessary steps required for the generation of CERs, 
after approval by the Japanese government of this as a CDM project is 

Taking measures to prevent global warming is one of TEPCO´s most 
important management issues. Therefore, TEPCO will launch committed 
efforts to combat global warming, both at home and abroad, by implementing 
various measures to improve the efficiency in supplying and using 
electricity in Japan and acquiring emission reductions credits via 
active cooperation in overseas projects.

(Note 1) Arauco
Company Name:     Celulosa Arauco y Constitucion S.A.
Company Location: Santiago, Chile
President:        Jose Tomas Guzman
Establishment:    1979
Capital:          Approx. 4,900 million U.S. dollars
Business Line:    Manufacture, etc. of wood products, including pulp 
                  and plywood

(Note 2) Clean Development Mechanism (CDM)
A system under which developed nations and economies in transition 
participate in projects in developing countries to reduce greenhouse 
gas emissions (or increase carbon sequestration), and acquire credits 
for emission reduction amounts. Along with JI (Joint Implementation) 
and ET (Emissions Trading), this is one of the initiatives of the Kyoto 
Mechanism. The Kyoto Mechanism is an economic mechanism, which allows 
for more flexibility in greenhouse gas reductions as set forth in the 
Kyoto Protocol in 1997.

(Note 3) Central Interconnected System (Sistema Interconectado Central [SIC])
The electric power system which supplies electricity to the area from 
the 3rd to the 10th Region of Chile, including the capital Santiago

(Note 4) Methane Gas
Because methane gas is 21 times more potent a greenhouse gas than carbon 
dioxide, greenhouse gases can be reduced by controlling methane gas 

Outline of Chilean Biomass Power Generation CDM Projects

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