Sojitz Corporation


Feasibility Study to Commence concerning a Large-scale CO2 Reduction Project promoted in Indonesia to Prevent Global Warming

Jun. 30, 2003

TOKYO(as of June 30, 2003)--Nissho Iwai Corporation, Mitsubishi Heavy Industries, Ltd.(MHI), and the Indonesian Ministry of Energy and Mineral Resources, in cooperation with the Kansai Electric Power Co., Inc. (KEPCO)and the Electric Power Development Company, will commence a detailed feasibility study concerning the CO2 EOR (Enhanced Oil Recovery) project, which is expected to contribute to future CO2 emission reductions. The decision to embark on the detailed feasibility study is in response to the results of a pre-feasibility study, which has been conducted for some time by Nissho Iwai, MHI and the Indonesian government.

The premise of the study is to measure the feasibility of the EOR project, in which the CO2 emitted from liquefied natural gas (LNG) production facilities and boilers is recovered, and enhanced oil recovery is carried out through the injection of the CO2 into depleting oilfields. With domestic demand for crude oil increasing, the Indonesian government will pursue the potential of EOR as support for the declining production of crude oil from domestic oilfields. 

While CO2 emitted to the atmosphere leads to global warming, the development of global warming prevention technology is advancing, which technology is to reuse CO2 recovered from the exhaust gasses generated from power stations. KEPCO and MHI jointly developed a technology (Flue Gas Decarbonization Technology) to efficiently separate and recover CO2 from exhaust gasses, and this technology has been established as the world's most energy-saving way to recover CO2 from exhaust gasses. The adaptability of the Flue Gas Decarbonization Technology will also be reviewed in the detailed feasibility study.

In collaboration with the Indonesian government, Nissho Iwai and the three companies aim to increase crude oil production by injecting CO2 into depleting oilfields, leading to both a positive contribution to the prevention of global warming through CO2 fixation and hopefully to future expansion of businesses applicable to the Kyoto Mechanism.

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