Chiyoda Licenses Its Flue Gas Desulfurization Technology in USA Newly for 5 Coal-Fired Generation Units.

YOKOHAMA, Japan -- Chiyoda Corporation (Chiyoda), a major Japanese industrial plant engineering company, announces that it has reached agreement with Black & Veatch Corporation (B&V), Overland Park, Kansas, U.S.A, for the provision of the "Chiyoda Thoroughbred 121(TM)" (the "CT-121(TM)") flue gas desulfurization (FGD) technology for Dayton Power & Light Company (DP&L) air quality improvement projects at Killen and Stuart coal-fired generating stations.

Killen Station and J. M. Stuart Station, located approximately 80 km southeast of Cincinnati, are major coal fired power stations operated by DP&L, which consist of five (5) nominal 600 megawatt units. DP&L intends to utilize Chiyoda's CT-121(TM) scrubber technology at all 5 units to remove sulfur dioxide and oxides of mercury. Chiyoda will supply the license, basic engineering package and associated engineering services to B&V, who is a full system integrator with capability of engineering, procurement and construction of these air quality improvement projects.

This is the second contract for Chiyoda in 2005 to license its CT-121(TM) FGD technology into US and Canadian markets. This January Chiyoda announced that the CT-121(TM) technology was licensed to Southern Company Services, Inc. (SCS), based in Birmingham, Alabama for 4 power generation units (totaling 3,400 megawatts) of the Bowen Power Station owned by Georgia Power, Atlanta. SCS's license territory is limited to the Southern Group's companies in 4 southern US states. With the Memorandum of Confirmation newly signed with B&V, whose licensed territory is whole US and Canadian market excluding SCS's area, the CT-121(TM) technology is going to be utilized totally for nine (9) coal-fired generation units totaling 6,400 megawatts in US and Canadian market this year.

The fundamental distinction in how the CT-121(TM) process developed by Chiyoda provides pollutant to reagent contact, compared to that of a spray tower, is that the Jet Bubbling Reactor (JBR) in the CT-121(TM) process sparges the flue gas stream into a pool of gypsum and limestone slurry to accomplish the pollutant to reagent contact or mass transfer. This technology makes it possible to remove sulfur dioxide with high efficiency rate such as 99 percent, oxides of mercury and other pollutants such as particulate at high rate over 90 percent.

Chiyoda and CT-121(TM)FGD technology

Chiyoda, headquartered in Yokohama, Japan, provides services on a global basis in the field of engineering, procurement and construction for gas processing, refineries, and other hydrocarbon or other industrial plant projects, particularly for LNG, GTL and DME. Chiyoda not only supplies equipment and facilities, but is also committed to providing environmental assessment and consulting services, and to the creation of excellent environmental preservation process integrating most appropriate technology and hardware.

Chiyoda is now active in the sales of the CT-121(TM) FGD technology in US, European and Chinese markets, backed-up by the experience of more than 50 units in Japan as well as overseas. This include those currently completed and commissioned with customers' satisfaction for Kobe Steel's two FGD units of 700 megawatts each, and Maizuru 900 megawatt FGD unit. Previously, Chiyoda succeeded in the export of the CT-121(TM) FGD technology to nineteen (19) units at overseas coal fired power stations.