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BHP Billiton Announces Comprehensive Air Emissions Reduction Program for Cabrillo Port

Posted on: Tuesday, 18 April 2006, 18:00 CDT

OXNARD, Calif., April 18 /PRNewswire/ -- BHP Billiton LNG International, a wholly owned unit of Australia-based BHP Billiton, today announced its program for reducing emissions of oxides of nitrogen (NOx) in the vicinity of its Cabrillo Port project. NOx is an emission generated from fuel combustion that contributes to the formation of ground level ozone (smog). The emission reduction measures announced today will result in a net decrease in NOx emissions in California's coastal waters. Other emissions of concern will decrease as well.

Renee Klimczak, president of BHP Billiton LNG International, Inc., explained that the program includes three separate initiatives. These initiatives work together to dramatically reduce NOx emissions from Cabrillo Port and to offset the remaining NOx emissions through emission reductions from existing marine sources.

#1. Clean Fuels Initiative The first of the three initiatives is a commitment to use clean burning natural gas in all of the operating equipment and vessels associated with Cabrillo Port. In the United States, diesel or marine fuel oil are almost exclusively used to fuel engines when operating at sea due to their low cost and general availability. These fuels emit large quantities of NOx, sulfur dioxide and diesel particulate -- all harmful air pollutants. By taking the unusual step of committing to use clean burning natural gas in both the Cabrillo Port operating equipment and the vessels operating in state and federal waters, BHP Billiton will dramatically reduce emissions of these pollutants. For example, by using natural gas instead of diesel fuel in its vessels operating in state and federal waters BHP Billiton will reduce NOx emissions by over 75 percent, which equates to reductions of more than 500 tons per year.

#2. Clean Engine Initiative The second of the three initiatives is a commitment to use advanced engines in the tugs servicing Cabrillo Port. BHP Billiton has committed to building state-of-the-art new tugs that will have substantially lower emissions than tugs commonly used in the United States. BHP Billiton is committing to use this established low emission technology to set the standard for tug boats (a major coastal emission source). The NOx emission rate anticipated from these vessels is over 60 percent lower than that achieved by conventional engines.

#3. Clean Neighbors Initiative The third of the three initiatives is a commitment to replace the engines in two tugboats that operate in the channels close to the Southern California coast. BHP Billiton announced today that it had entered into agreements with two West Coast-based marine transportation service providers, whereby the company will replace the engines in tugboats hauling barges off the Southern California coast. The first agreement is with Sause Brothers, which operates a tugboat between the Port of Richmond and the Port of Long Beach, in addition to performing local runs between El Segundo and Los Angeles. The dual high powered tug engines (2,000 horsepower each) consume a substantial amount of diesel fuel and emit a substantial amount of NOx, among other pollutants. Under its agreement with BHP Billiton, Sause Brothers will fit this vessel with more fuel efficient and lower emitting engines. A similar agreement has been reached with a second company and it is projected that as a result of these agreements NOx emissions from the tugs operating in California's coastal waters will decrease by approximately 219 tons per year. This reduction far exceeds Cabrillo Port's 66.7 tons per year of NOx emissions and even exceeds the combined total of all direct and indirect NOx emissions associated with Cabrillo Port's operations (163.3 tons per year).

BHP Billiton's emissions reduction program reduces NOx emissions, in total, by more than 800 tons per year. This equates to more emission reductions than would be required were Cabrillo Port located onshore. The combined effect of these three initiatives is a projected net decrease in regional NOx emissions as a result of the Cabrillo Port project -- even when indirect emissions are considered. The company's emissions reduction program benefits all residents of Southern California's coastal counties.

BHP Billiton is Australia's largest publicly-traded company and the world's leading diversified natural resources company. Cabrillo Port, BHP Billiton's proposed natural gas transfer facility to be located off the coast of Southern California, would be the second offshore floating facility in the world when it comes online in 2010, following the installation of a facility off the coast of Italy, expected in 2008.

BHP Billiton employs approximately 37,000 people in 25 countries across the world, and is widely recognized as an industry leader in corporate social responsibility and sustainable development. BHP Billiton's market cap on global trading today is approximately US$130 billion. More information about Cabrillo Port and BHP Billiton LNG International can be accessed at http://www.cabrilloport.com/.

BHP Billiton

CONTACT: Energy trade and industry media, Patrick Cassidy,+1-713-961-8517, or mobile, +1-713-542-2133, or Local California press, KathiHann, +1-805-604-2789, both for BHP Billiton

Web site: http://www.cabrilloport.com/

Source: PRNewswire

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