ICF Consulting Projects High U.S. NO_x Prices to Ease This Summer

WASHINGTON, DC, April 10, 2003 - ICF Consulting's recently released 2003 Nitrogen Oxide (NO_x) Market Outlook predicts that 2003 SIP Call NO_x prices will soften this summer. However, volatility as well as prices will increase as we approach the 2004 ozone season running (May through September) and the program expands.

NO_x allowance prices have increased 10-fold from the 2002 Ozone Transport Region NO_x market to the current SIP Call Market. Largely mirroring the recent surge in natural gas prices, NO_x prices peaked at over $7,000 per ton before tailing off in recent weeks as gas prices slowly declined. This sharp rise in NO_x allowance prices reflects the large degree of uncertainty about key market drivers as the new NO_x market gets underway. Electric generators are also fearful of forced curtailment during peak electric price periods due to a lack of allowances. However, Nate Collamer, a Principal at ICF Consulting, observes, "Power flows into the Northeast will help to alleviate NO_x allowance shortages in the 2003 season, and prices should decline in the coming months once the supply/demand balance for NO_x becomes clear. "

The scheduled expansion of the SIP Call into the higher NO_x emitting, coal-dominated regions of the Midwest and Southeast will lead to higher NO_x prices in 2004. Collamer continues, "Given the expansion of the SIP Call, combined with a slowdown in announced selective catalytic reduction (SCR) installations, we expect NO_x prices to rise going into 2004 and remain high through 2005."

A comprehensive analysis of the SIP Call NO_x market and potential annual NO_x markets as envisioned under the Clear Skies Act, this year's NO_x study addresses the critical questions on the minds of compliance planners, allowance book managers, and market watchers. The study is tailored to probe into today's most salient market issues, including:

• Prospects for sky-high NO_x prices for 2003, 2004, and 2005
  
  
• Impacts of the recent surge in gas prices on near-term NO_x markets and control decisions
  
  
• Implications of proposed federal multi-pollutant regulations on future NO_x markets and control decisions
  
  
• Views of technology costs, likely future air regulatory developments, state multi-pollutant regulatory developments, gas markets, and other key power market/allowance market drivers

ICF Consulting has been successful in forecasting allowance market trends since the 1980s and began publishing the annual NO_x Market Outlook in 1998. Our analyses have consistently proven accurate year in and year out.

ICF International (Nasdaq: ICFI) partners with government and commercial clients to deliver consulting services and technology solutions in the energy, environment, transportation, social programs, defense, and homeland security markets. The firm combines passion for its work with industry expertise and innovative analytics to produce compelling results throughout the entire program life cycle, from analysis and design through implementation and improvement. Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. More than 1,800 employees serve these clients worldwide. ICF’s Web site is http://www.icfi.com.

For Immediate Release Contact: Douglas Beck 1.703.934.3820