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Chiyoda Corporation (TSE: 6366; ISIN: JP3528600004), Japan's leading engineering and construction firm, today reported that together with Fuji Oil Co., Ltd. and Sumitomo Chemical Co., Ltd. it had won the “Agency for Natural Resources and Energy Director-General's Award” for a “multiple-site low-grade exergy* recovery system” at the 27th (2006) Energy Conserving Machinery Awards sponsored by the Japan Machinery Federation (JMF).

“Multiple-site low-grade exergy recovery system” is the collective term for Fuji Oil and Sumitomo Chemical's (1) use of an energy-sharing system to share exhaust heat (energy savings equivalent to 4,900kL of crude oil per year) with the Integrated Energy Monitoring System which shows the optimized operation condition for the sites and (2) use of a Low-grade Heat Conversion System to generate electricity with Fuji Oil's exhaust heat (energy savings equivalent to 5,800kL of crude oil per year) at their sites in the Chiba industrial area.

Prior to winning the JMF award, Chiyoda conducted an analysis utilizing Pinch Technology at the 23 sites in the Chiba industrial area from fiscal 2000 to fiscal 2002 supported by NEDO,The New Energy and Industrial Technology Development Organization, affiliated with the Japanese government. It confirmed that the area had a theoretical energy-saving potential equivalent to 640,000kL of crude oil per year, roughly the same as the total amount consumed in Japan in one day. Leveraging part of this potential, the award-winning system was a joint project for conserving energy through shared use of exhaust heat by Fuji Oil and Sumitomo Chemical's sites. The system saves an equivalent of 10,700kL of crude oil per year, which has the effect of reducing CO2 emissions by 28,000 tons per year.

Japanese industries lead the world in energy conserving initiatives, and it has been claimed that no further savings can be made. In response, Chiyoda has used its analysis technologies to clearly demonstrate the significant potential energy savings by interchanging exhaust heat among individual sites throughout an entire industrial area. This has enabled multiple sites to promote joint energy conserving projects across business boundaries, which was formerly difficult to achieve.

Following its analysis of the Chiba industrial area, the Company is in the process of analyzing and proposing energy conservation projects for other major industrial areas in Japan, including the Mizushima and Kashima industrial areas. (Some of these projects are currently moving toward implementation.) In addition to promoting environmental preservation, conserving energy at industrial areas has a significant effect on lowering production costs, thus strengthening the international competitiveness of Japan's industrial areas.

Based on its achievements in Japan, Chiyoda Corporation will consider applying its energy conservation analysis and study techniques to industrial areas in Asia and other overseas locations, thereby contributing to the promotion of global energy conservation and helping counter global warming.

*Exergy is defined as the potential work derived from the system which has heat.

For more information, please contact:
Chiyoda Corporation Investor Relations and Corporate Communications Office
Tel: 81-45-506-7538
Fax: 81-45-506-7085