The "Chile Methane Recovery Project", in which the Tokyo Electric Power
Company is planning to purchase carbon credit(1) (formally announced on
August 24th 2004), has been officially registered by the UN CDM Executive
Board as the first Clean Development Mechanism (CDM) (2) Project in which
TEPCO is  involved.

Under this project, Chilean food processing giant Agrosuper(3) has built
state-of-the-art closed manure treatment system in five of its pig farms.
Methane gas(4), which is recovered from the treatment system and burned
off, reducing emissions of greenhouse gas by the equivalent of about
400,000 metric tons carbon dioxide a year.

In the nine years from 2004 to 2012(5) Tokyo Electric Power Company will
purchase carbon credit which is equivalent of about 2 million tons carbon
dioxide.  In July of this year, Agrosuper applied to the United Nations
for registration of the project as an internationally recognized CDM
initiative.

In due course, on approval of the greenhouse gas emissions reduction
quantity by the Designated Operational Entity(6), the carbon credits will
be issued.

Tokyo Electric Power Company attaches paramount importance to protection
of the environment. In addition to our active implementation of domestic
measures  aimed at preventing global warming, we are proactively
participating in the Prototype Carbon Fund and Bio Carbon Fund by the
World Bank, and  positively considering about cooperating with a number
of international projects in order to obtain carbon credits.

Ref 1: Outline of the "Chilean Methane Recovery Project" 
Ref 2: Clean Development Mechanism (CDM) Project 

(1)Carbon Credit
A system under which developed nations and economies in transition have
the right to use emission reductions and absorbed volumes to offset
emissions of greenhouse gases.

(2)CDM:Clean Development Mechanism
A system under which developed nations and economies in transtion take
part in projects in developing countries to reduce greenhouse gas
emissions (or increase sinks), and then get credits for emission
reduction amounts. Along with JI (Joint Implementation) and ET (Emission
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. It is part of the "Kyoto
Protocol" adopted at the The 3rd Session of the Conference of the
Parties to the United Nations Framework Convention on Climate Change
(COP3), which was held in Kyoto in 1997.

(3)Agrosuper
•Company Name: Agricola Super Limitada
•Company Location: Rancagua, Chile
•President: Mr. Gonzalo Vial
•Established: 1982
•Main Business:
  •Food manufacturing, processing and sales.  Chile's largest
   meat processing group.
  •Chicken and pig farming (approximately 2,000 chicken houses
   and pig stables). Processing is the core business, and the company
   produces approximately 200,000 tonnes of meat a year.
  •The company is targeting meat, fruit juice and wine markets in
   Asia, and in 2004 opened an office in Tokyo.

(4)Methane Gas
Because methane gas is twenty-one times more potent a greenhouse gas
than carbon-dioxide, greenhouse gases can be reduced by burning the gas,
which turns it into CO2 and water.

(5)From 2004 to 2012
After issuing the carbon credits, credits will be purchased retroactively
for 2004.

(6)Designated Operational Entity
A third-party body accredited by the UN CDM Executive Board, which
assesses whether projects are eligible for CDM status and verifies
greenhouse gas emission reductions.

[Ref]