TrustPower, Kansai sign Emission Purchase Agreemt

Media Statement
Tuesday 4th February, 2008

TrustPower Ltd and Kansai have signed an Emission Reduction Purchase Agreement

New Zealand electricity retailer and generator TrustPower Limited (TrustPower) and The Kansai Electric Power Company (Kansai), the largest electric utility company in western Japan have signed an Emission Reduction Purchase Agreement.

Under the ERPA, Kansai will purchase 300,000 carbon credits from TrustPower's Tararua III Wind Farm over the period 2008-2012. The Tararua III Wind Farm is an eligible project under the Joint Implementation mechanism of the Kyoto Protocol yielding Emission Reduction Units.

This agreement is part of the Kansai strategy to have a diversified portfolio and meet its GHG emission reduction target under the Kyoto protocol.

TrustPower's Trading Manager Therese Thorn believes that TrustPower's sale of Emission Reduction Units to Kansai is a great example of how businesses in other countries can effectively help pay for the cost of New Zealand investments in clean, green, sustainable energy and other projects and is pleased to complete this transaction with Kansai.

The transaction was successfully brokered by TFS Energy's global CDM and JI team.

Profile - TrustPower
TrustPower is committed to the development of renewable generation sources and the reduction of CO2 emissions. Its generation portfolio consists of 34 hydro generating units, and New Zealand largest wind far on the Tararua Ranges in the North Island.

It currently has two South Island wind farms in the resource consenting stage, one at Mahinerangi in Otago and the other at Kaiwera Downs in Southland.

At the same time hydro schemes in Marlborough's Wairau Valley and on the Arnold River on the South Island's West Coast are also in resource consenting phase, while the Deep Stream hydro development near Lake Mahinerangi is in the final stages of construction, with commissioning expected in March 08.

Profile - Kansai
The Kansai Electric Power Co., Inc. serves a total population of about 20 million in the internationally renowned cities of Osaka, Kyoto, Kobe, Nara and their surrounding areas. Kansai sold 147.3TWh and emitted 49.81million t-CO2 through supplying electric power in the fiscal year of 2006-2007.

Kansai's voluntary GHG emission reduction target is to reduce average CO2 emission factor from 2008 to 2012 by about 20% from the 1990 level. In order to achieve its voluntary target, Kansai promotes the utilization of the Kyoto Mechanisms.

ENDS

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