International Efforts

The Kyoto Protocol went into effect in February 2005, and the Kyoto Mechanism has been clearly defined as an international measure to cope with global warming.

As its leading activities, Tohoku EPCo has participated in afforestation projects overseas and the World Bank's Prototype Carbon Fund (PCF) to date. From now on, it will make active efforts to promote the projects (JI/CDM) to reduce greenhouse gas emissions on a global scale.

Outline of Kyoto Mechanism

Participation in Japan GHG Reduction Fund

Japan GHG Reduction Fund (JGRF) is a carbon fund (about 140 million dollars) that was established in December 2004 by 33 Japanese participating firms. With the funds invested by partners, JGRF implements projects to reduce greenhouse gas emissions in developing countries, etc., and the amount of CO2 emissions reduced by the projects (CO2 credits) is distributed to the partners. Tohoku EPCo has invested 10 million dollars in JGRF to support greenhouse gas emission reduction projects on a global scale.

Outline of JGRF

Purchase of CO2 Credits from Biomass Power Generation Project (Honduras)

Bagasse

The biomass power generation project in Honduras is designed to use the sugar cane residues (bagasse) produced by local sugar manufacturers in the process of sugar manufacturing as the fuel to generate electricity and supply the electricity to the state-run electric power company. The project is aimed at reducing CO2 emissions by replacing diesel power generation that is the main power source at present in Honduras. Tohoku EPCo will acquire the credits equivalent to about 860,000 tons of CO2 emissions to be reduced by this project by 2012, and also contribute to creation of job opportunities, local electrification, invigoration of local economy, etc. in Honduras.

Conceptual Diagram of Biomass Power Generation in a Sugar Factory

Participation in Afforestation Project Overseas (Australia)

APFL's plantation

Tohoku EPCo has invested and participated in Albany Plantation Forest Company of Australia Pty Ltd. (APFL) that runs an afforestation project in Western Australia. This project is aimed at planting trees in an area of about 24,000 hectares, supplying planted trees as papermaking stock, and contributing to the preservation of forest resources, prevention of salt damage, etc. In October 2004, this project received "Forest Management Certification" from the "Forest Stewardship Council (headquartered in Germany)" as a forest properly managed.

* APFL is a local corporation jointly invested by Oji Paper Co., Ltd., Itochu Corp., Senshukai Co., Ltd. and Nippon Yusen K.K., in addition to Tohoku EPCo.

Image of Afforestation Project

Co-Generation and Energy-Saving Model Project (Kazakhstan)

High-efficiency gas turbine equipment
now under construction (in Uralsk)

Under a contract awarded from the New Energy and Industrial Technology Development Organization (NEDO) in FY2002 for an energy-saving project, Tohoku EPCo is now constructing Japan's proven high-efficiency gas turbine equipment at a co-generation plant in Uralsk, Kazakhstan. The co-generation plant is slated to start power generation within this fiscal year and receive checking of its energy-saving effect. For reference, this project is approved by the government as Japan's first Joint Implementation (JI) project.

Surveys on Greenhouse Gas (GHG) Emissions Reduction Projects Overseas

Efforts Toward Gas Business

Natural gas is receiving much attention as a clean energy friendly to the earth because it emits less CO2 as the causal substance of global warming than other fossil fuels such as oil, coal, etc., and also emits less nitrogen oxides (NOx) and less sulfur oxides (SOx) as toxic substances.

Tohoku EPCo is trying to expand the wholesale and bulk supply of natural gas through Nihonkai LNG Co., Ltd. and Tohoku Natural Gas Co., Inc. as its Group companies, capitalizing on the advantages of the Company Group such as the utilization of LNG receiving terminals and "Niigata-Sendai gas pipeline."

Tohoku EPCo and Japan Petroleum Exploration Co., Ltd. are now jointly constructing the "Shiroishi-Koriyama gas pipeline," and Tohoku Natural Gas is constructing the "Yamagata natural gas pipeline," respectively, to further reinforce the infrastructure of its gas business.

Current Status of Gas Business Development Projects