Tokyo Electric Power Co. (TEPCO) will purchase emissions reduction credits 
or carbon credits*1 of approximately 2 million tons (carbon dioxide 
equivalent) over a period of nine years between 2004 and 2012, which are 
generated from the methane recovery project of Chilean major food 
processing company Agricola Super Limitada*2. Approval by the Japanese 
Government is required for the project to be registered as a Clean 
Development Mechanism*3 project, one of the Kyoto Mechanisms, and TEPCO has 
hereby filed an application of approval to Ministry of Economy, Trade and 
Industry.

Agricola Super Limitada has been engaged in the treatment of swine manures 
in Chile (natural digestion and management of precipitated sludge at open 
waste storage lagoons) in accordance with relevant laws, and it has so far 
released methane produced in the process into the air due to the absence of 
regulations. 

The new project features a state-of-the-art closed manure treatment system 
that utilizes bacteria for digesting swine manure to recover and flare 
methane, whose greenhouse effects are 21 times greater than carbon dioxide, 
thereby reducing greenhouse gas emissions*4. Through this method, it is 
expected that as much as 400,000 tons of greenhouse gases (carbon dioxide 
equivalent) will be reduced annually, and also stemming bad odors and 
contributing to the preservation of the community environment. This project 
has been already approved by the Chilean Government as a CDM project.

Preserving the environment is a top priority for TEPCO. We earnestly 
promote measures to fight global warming within Japan and in addition, 
TEPCO acquires carbon credits through active cooperation in overseas 
projects, such as making contributions to the "Prototype Carbon Fund" and 
"Bio Carbon Fund," of the World Bank ahead of many other Japanese 
companies. This is the first CDM project for TEPCO that involves a direct 
purchase of carbon credits from the CDM project operator. TEPCO is willing 
to continue its efforts to work for the preservation of the environment at 
home and overseas.

A ceremony to mark the signing of the agreement will be held on August 24 
in Santiago, Chile, at 11 a.m. local time, and midnight Japan Standard 
Time, under the auspices of Agricola Super Limitada. Dignitaries and 
officials from both the Chilean and Japanese governments are expected to 
attend.



*Note 1 Carbon credit
        Rights to offset greenhouse gas emissions in industrialized and 
        transitional economies with emissions reductions/absorption.

*Note 2 Agricola Super Limitada
        *Name:          Agricola Super Limitada
        *Head Office:   Rancagua, Chile
        *Chairman:      Mr. Gonzalo Vial
        *Established:   1982
        *Sales:         About \25 billion (2001 results)
        *Capital:       About \1.8 billion
        *Business:      Affiliated with the Agro Super Group, Chile's 
                        largest meat processing group that controls food 
                        production, processing and sales companies
                        Breeding of chickens and swines (owns about 2,000 
                        chicken and swine houses). Its main business is 
                        processing and producing approximately 200,000 tons 
                        of meat a year.
        The company opened its Tokyo Office in 2004, with the aim of 
        promoting the distribution of meat, fruits and wine in Asian markets

*Note 3 Clean Development Mechanism (CDM)
        This is a mechanism under which industrialized and transitional 
        economies conduct projects in developing countries to reduce 
        emissions (or enhance absorption) of greenhouse gases, and use the 
        amount of emissions reduction resulting from the project as credits.
        CDM is one of the three flexible mechanisms of the Kyoto Protocol 
        (Kyoto Mechanism), along with Joint Implementation (JI) and 
        Emissions Trading (ET).
        Kyoto Mechanism is the economic mechanism that aims to reduce 
        greenhouse gas emissions more flexibly, as stipulated by the Kyoto 
        Protocol adopted at the Third Conference of Parties to the United 
        Nations Framework Convention on Climate Change (COP3), held in 
        Kyoto in 1997.

*Note 4 Methane 
        Methane has greenhouse effects 21 times that of carbon dioxide, and 
        so greenhouse gas emissions can be reduced significantly by 
        transforming methane into carbon dioxide and water through 
        combustion.

(Reference)