CMS Energy Announces U.S. Government Approval of CO2 Emissions Reductions Project in Equatorial Guinea

DEARBORN, Mich., January 31, 2001 - CMS Energy Corporation and its partners in the Atlantic Methanol Production Company (AMPCO) project, Samedan Oil Corp., a wholly owned subsidiary of Noble Affiliates, Inc. and the Government of Equatorial Guinea, today announced the project has been accepted into the U.S. Initiative on Joint Implementation (USIJI) program in recognition of major reductions in emissions of carbon dioxide.

The level of carbon dioxide emissions reductions credited to the project is the largest ever accepted for an existing facility. USIJI is a U.S. Government interagency group that is co-chaired by the U.S. Environmental Protection Agency and the Department of Energy, and includes representatives from the Departments of State, Commerce, Treasury and other federal agencies. USIJI administers the U.S. Government's most rigorous process for reviewing and accepting carbon dioxide emissions reductions.

The AMPCO plant, which is nearing completion on Bioko Island in the Republic of Equatorial Guinea, will convert natural gas that has been flared historically at a rate of 88 million cubic feet per day, and is currently flared at 125 million cubic feet per day, into commercial methanol for export on the world market. The USIJI panel estimates that the project will reduce a total of 71.27 million metric tons of carbon dioxide equivalent during the project's 25-year life span. CMS Energy also announced its intention to examine prospects for trading these emissions reductions in the global marketplace, which would enhance the project's economics and correspondingly encourage new investment in environmentally friendly projects in Africa.

"These reductions can be marketed now by AMPCO's partners or banked for possible future use," said William T. McCormick, Jr., chairman and chief executive officer of CMS Energy.

"We believe this kind of innovation benefits not only the project partners, but also the government and people of Equatorial Guinea. As the USIJI evaluation panel indicated, this project will also open the door for increased investment in environmentally sound projects in the region and beyond as governments and investors begin to recognize the added economic value of reducing and trading emissions."

In accepting the project, the USIJI evaluation panel noted three factors in its decision: the project's location in Africa, a region of the world that has been under represented in the USIJI program; the involvement of a company such as CMS Energy; and the potential for similar efforts to emerge as the project succeeds.

"CMS Energy is proud of its effort to protect the environment, reduce carbon dioxide emissions, and to improve ambient air quality in Equatorial Guinea," said McCormick.

"The acceptance by USIJI of our emissions reductions underscores the environmental benefits of the AMPCO project and signifies that the project promotes sustainable development in a sound and meaningful way."

CMS Energy Corporation has annual sales of $9 billion and assets of about $16 billion throughout the U.S. and around the world with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines, gathering, processing and storage; oil and gas exploration and production; and energy marketing, services and trading.

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