Asia Pulse: JAPAN'S SHOWA SHELL TO ACTIVELY MARKET CO2 EMISSION RIGHTS (ShellNews.net) 16 Feb 05

Feb 16, 2005

TOKYO, Feb 16 Asia Pulse - Showa Shell Sekiyu KK (TSE:5002) will become an active participant in the Clean Development Mechanism activities of the Royal Dutch/Shell Group.

Established as part of the Kyoto Protocol, the Clean Development Mechanism (CDM) allows companies to obtain carbon-dioxide emission rights by taking part in emission-reduction projects.

The Shell Petroleum Company requested Showa Shell Sekiyu to become involved in its CDM activities because it believes there is great potential demand among Japanese companies looking to purchase emission rights.

Showa Shell Sekiyu will dispatch one person to Shell Petroleum in the UK to learn more about the business of selling emission rights, and it will designate two persons at the head office in Tokyo to manage the operations.

To obtain emission rights, Showa Shell will help oil refineries in developing nations convert from asphalt-burning steam turbines to natural gas-burning gas turbines.

Introducing cogeneration systems and helping to boost energy efficiency, the company will aim at obtaining emission rights for 107,000 tons of CO2 a year. These rights will then be sold to Japanese companies.

(Nikkei)