MHI and Worley Awarded FEED Contract for UK's First CO₂ Capture Plant at a Cement Production Facility -- Contract Awarded Following Successful Pre-FEED in 2022, Further Promoting Decarbonization of the Cement Industry --

Tokyo, February 6, 2024 - Mitsubishi Heavy Industries, Ltd. (MHI)'s technology is being deployed by leading global cement manufacturer Heidelberg Materials UK, for Front End Engineering Design (FEED), to further study the specifications of a CO₂ capture plant at Padeswood Cement Works in Flintshire, UK.

This contract has been awarded in accordance with the progress made by the Padeswood CCS (carbon capture and storage) project planned for the site. MHI was selected after working on the initial competitive Pre-FEED (Note) project study awarded in 2022.

The project is part of the HyNet CCUS (carbon capture, utilization and storage) cluster in the North West of the UK, which plans to capture up to 800,000 tons of CO₂ annually from flue gas produced during the cement manufacturing process and store it in a depleted gas field off Liverpool Bay. The CO₂ capture plant could start operation in 2028. As well as the direct benefit of decarbonizing the industrial process, enabling the production of carbon neutral cement is key to supporting a low carbon supply chain to the construction industry.

This project is a partnership between MHI and Worley, a global professional services company of energy, chemicals and resources experts, and will implement the basic design of the CO₂ capture plant using the "Advanced KM CDR Process™" proprietary CO₂ capture technology developed jointly with The Kansai Electric Power Co., Inc.

Kenji Terasawa, CEO and Head of Engineering Solutions at MHI, said: "The cement industry is `hard to abate', because CO₂ emissions cannot be avoided in the production process. Heidelberg Materials UK has committed to reaching net zero carbon by 2050 and will be deploying our proprietary carbon capture technology, the Advanced KM CDR Process™ to tackle this challenge - leading the way in the UK's cement industry. We are proud to contribute to the effort on this commitment through the Padeswood CCS project."

Simon Willis, CEO, Heidelberg Materials UK, said: "This is a decisive next step in our plans to install carbon capture technology at our Padeswood cement works. Once operational, it will provide net zero building materials for major projects across the country, enabling us to help decarbonise the construction industry and meet our ambition to become a net zero business."

Marino Barbi, Senior Vice President UK for Worley commented "Worley, together with our partners MHI are delighted to have been selected by Heidelberg Materials for their Padeswood CCS FEED project. This is a first of its kind CCS development in the UK and our appointment is testament to the strength of our relationship with Heidelberg Materials and MHI, our execution of the pre-FEED and Worley's extensive CCUS capabilities."

The UK Government has set a target to achieve net zero carbon emissions by 2050. In line with this initiative, the requisite infrastructure, including formation of CCUS clusters, is being developed to carry out all related processes - from CO₂ capture to transportation and storage - at each of the country's targeted industrial zones. The HyNet CCUS cluster, which includes this project, was selected by the then UK Department for Business, Energy and Industrial Strategy (BEIS) as a storage site in October 2021. This is still being supported by the subsequent new department, the Department for Energy Security and Net Zero (DESNZ).

The project also was selected as a specific CO₂ capture and storage project by the UK Government as an effort to promote decarbonization in the cement industry, which in the hard-to-abate sector means the difficulty of reducing CO₂ in the production process.

MHI Group has formally declared its intent to achieve carbon neutrality by 2040, and is now working strategically to decarbonize both the energy demand and supply sides. A core element of the Company's "Energy Transition," which targets decarbonization on the energy supply side, is the development of a CO₂ solutions ecosystem integrating diverse sources of carbon emissions with modes for carbon storage and utilization. Going forward, MHI Group will continue to strongly promote the CCUS business by utilizing its proprietary CO₂ capture technology, and as a solutions provider, contribute to the reduction of greenhouse gas emissions on a global scale, and further develop solutions that help protect the environment.

• For details of the Pre-FEED, see the following press release:
  https://www.mhi.com/news/22121502.html

About Heidelberg Materials

Heidelberg Materials is one of the world's largest integrated manufacturers of building materials and solutions, with leading market positions in cement, aggregates, and ready-mixed concrete. We are represented in more than 50 countries with around 51,000 employees at almost 3,000 locations. At the centre of our actions lies our responsibility for the environment. As the front runner on the path to carbon neutrality and circular economy in the building materials industry, we are working on sustainable building materials and solutions for the future. We enable new opportunities for our customers through digitalisation.
heidelbergmaterials.com

In the UK, Heidelberg Materials (formerly Hanson UK) is split into five business lines - aggregates (crushed rock, sand and gravel), concrete, asphalt and contracting, cement and recycling - which together operate around 280 manufacturing sites and employ more than 3,500 people. heidelbergmaterials.co.uk

About Worley

Worley is a global professional services company of energy, chemicals, and resources experts. We partner with customers to deliver projects and create value over the life of their assets. We're bridging two worlds, moving towards more sustainable energy sources, while helping to provide the energy, chemicals and resources needed now. Worley Limited is headquartered in Australia and listed on the Australian Securities Exchange (ASX: WOR).
www.worley.com

About MHI Group's CO₂ capture technologies

MHI Group has been developing the KM CDR Process™ (Kansai Mitsubishi Carbon Dioxide Recovery Process) and the Advanced KM CDR Process™ in collaboration with The Kansai Electric Power Co., Inc. since 1990. As of February 2024, the Company has delivered 16 plants adopting the KM CDR Process™, and two more are currently under construction. The Advanced KM CDR Process™ adopts the KS-21™ solvent, which incorporates technological improvements over the amine-based KS-1™ adopted at all 16 of the commercial CO₂ capture plants delivered to date. The advanced version offers superior regeneration efficiency and lower deterioration than the KS-1™, and it has been verified to provide excellent energy saving performance, reduce operation costs, and result in low amine emissions.

For further information on MHI Group's CO₂ capture plants:

• https://www.mhi.com/products/engineering/co2plants.html