Alstom and Statoil to jointly develop project for chilled
ammonia-based CO2 capture for natural gas in Norway

The objective of the agreement covers the design and
construction of a 40MW test and product validation facility at
Statoils Mongstad refinery in Norway. This facility will
be designed to capture at least 80,000 tons per year of CO2
from flue gases from the refinerys cracker unit or from
a new combined heat and power plant being built by Statoil and
scheduled to be in operation by 2010. The test and product
validation facility is expected to enter operation by 2009-2010
with the first operation and testing phase to last 12-18
months.

It is the intent of both parties that this facility will
lead to technical advances and the construction of a larger CO2
capture unit that may eventually capture over 2 million tons
per year of CO2 at Mongstad. Because of the recognition of CO2
as the main greenhouse gas contributing to global warming,
development of CO2 capture systems is an important milestone
towards carbon emissions reduction. Alstoms chilled
ammonia technology holds great promise for controlling NGCC as
well as other industry generated emissions economically and
with a significantly low energy loss.

Research suggests that chilled ammonia-based CO2 capture can
remove up to 90% of the CO2 from flue gases. Compared to
several proposed techniques that can separate carbon dioxide
from the other gases, Alstoms chilled ammonia process
greatly reduces the amount of energy used to capture CO2. This
energy is referred to as an energy loss because the
plants energy output is reduced by the amount of energy
needed to remove the CO2. Studies demonstrate that
Alstoms technology may result in an energy loss of
approximately 10% versus other methods of post-combustion CO2
separation, which result in losses of nearly 30%.

Statoils intention is to accelerate technological
development with carbon capture and storage (CCS). Alstom and
Statoil have been cooperating, in addition to other parties
including the Electric Power Research Institute (EPRI), in the
development of the chilled ammonia CO2 capture technology since
2005. This deal follows an agreement made between Alstom and
AEP (American Electric Power) in the US to develop the
technology for application on utility coal-fired boilers and to
carry out a pilot. Initial research and development of the
Alstom chilled ammonia CO2 capture technology has been jointly
funded by Alstom, EPRI and Statoil. The first field tests will
commence later this year at a 15,000 tons per year capture
pilot plant to be located at the We Energies Pleasant Prairie
power plant, Wisconsin, which is jointly funded by Alstom and
EPRI.

CO2 emissions are a worldwide problem and Alstom is
leading the way in capture technology, said
Philippe Joubert, President of Alstom Power Systems.
We have a long history of collaboration with Statoil
and this agreement represents our mutual commitment to both the
technology and society at large.

Statoil is an integrated oil company covering the whole
value chain from exploration and production to manufacturing
and marketing. With more than 25,000 employees in 30
countries, Statoil is the leading operator on the Norwegian
continental shelf with an increasing share of international
production. It is one of the world's largest sellers of crude
oil and a substantial supplier of natural gas to the European
market. In addition, the group has operation of 1,800 service
stations in Scandinavia, Poland, the Baltic States and
Russia.

Alstom sets the benchmark for innovative, environmentally
friendly technologies in the world of power and rail
transport infrastructure. Alstom built the fastest train and
the highest capacity automated metro in the world, and
provides turnkey integrated power plant solutions and
associated services for a wide variety of energy sources,
including hydro, gas and coal. The Group employs more than
65,000 people in 70 countries, and had sales of 14.2
billion in 2006/07.

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Investor Relations

Emmanuelle Chatelain


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