Power Engineering - Evolution Markets brokers sale of carbon credits between Hungarian power producer and Dutch government

White Plains, NY, Dec. 17, 2003 -- Evolution Markets LLC announces that the Dutch government has agreed to a purchase of greenhouse gas reduction credits from Hungarian power producer Bakony Power Plant Plc.

The transaction, which was prepared, structured and facilitated by Evolution Markets, incorporated the sale of reductions that qualify as carbon credits under the Kyoto Protocol's Joint Implementation program.

Under the terms of the transaction, Bakony Power will sell credits representing the reduction of more than 400,000 tons of CO2-equivalent to the Dutch government. The credits will be generated from 2008 to 2012.

The purchase was conducted through the third round of the Dutch government's Emissions Reduction Unit Procurement Tender (ERUPT) and represented the only project from Hungary accepted in this round of the tender.

"The Bakony Power project reflects the promise of carbon finance for companies in Central and Eastern Europe," said Andrew Ertel, President & CEO of Evolution Markets.

"This project was facilitated by funding derived from the sale of carbon credits. We are pleased to have been able to assist Bakony in preparing this project for sale to the Dutch government. We see similar opportunities beyond ERUPT available elsewhere in Central and Eastern Europe."

Bakony Power operates the Akja Power Plant located in the mid-west of Hungary. The company will generate the reductions by switching the fuel source for a portion of its power facility from coal to biomass, thereby reducing overall greenhouse gas emissions resulting from electricity generation from the site. Under the rules of Joint Implementation, Bakony sought and received a Letter of Approval for the creation of carbon credits, or Emission Reduction Units (ERUs), from the Hungarian government.

The Dutch government is conducting the ERUPT process as a means to acquire carbon credits, which will reduce its overall emissions and enable the country to take steps to meet its reduction requirements under the Kyoto Protocol. ERUPT is administered by Senter, an agency of the Dutch Ministry of Economic Affairs that implements government policy in the fields of technology, energy, environment, exports and international cooperation.

Today, the Dutch government also announced the full results of ERUPT III. SENTER has indicated that the average price for the ERUPT III procurement round is € 5.5.

Evolution Markets aided Bakony Power throughout the process of marketing its reductions to the carbon market. Evolution Markets assisted in developing the baseline study, quantifying reductions and structuring the reductions as JI credits; obtaining host country approval under JI rules; compiling and submitting information required under ERUPT III; and ultimately facilitating the sale of credits.

For more information on Evolution Markets' Greenhouse Gas Services, including our greenhouse gas emissions trading brokerage and carbon finance practice areas, please contact our carbon market team at: +1 914.323.0265.

Evolution Markets LLC is the largest emissions and OTC coal brokerage firm in the world. Formed in 2000, the company structures transactions in the environmental credit, renewable energy, weather derivative, and over the counter (OTC) coal markets. Evolution Markets personnel are pioneers in energy and environmental markets having facilitated the first trades in SO2 allowances, NOx allowances, ERCs in several states, greenhouse gas emissions, weather derivatives, and OTC coal trades.

The company specializes in carbon finance, and the greenhouse gas brokerage and advisory team has closed some of the most important domestic and international GHG transactions, including the first trade under the Kyoto Protocol's emissions trading program.

Evolution Markets and MENERT spol. s r.o., Slovakia's leading environmental engineering and project development firm, have engaged in the Evolution Menert joint venture to provide a full range of environmental markets services to governments, corporations, NGOs and other participants in the Slovak Republic and Czech Republic. Through a joint venture with Starsupply Petroleum, Evolution Markets has created Evolution Carbon International to provide expert brokerage services to the international coal trading market. www.evomarkets.com

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