ADA-ES Announces Activated Carbon Injection Systems Contract Valued at up to $20 Million
ACI Systems Will Reduce Mercury Emissions at Fleet of Coal-Fired Power Plants
HIGHLANDS RANCH, Colo.--(BUSINESS WIRE)-- ADA-ES, Inc. (ADES) (ADA) today announced that it has signed a contract to supply between 11 and 20 activated carbon injection (ACI) systems for a fleet of coal-fired generating plants that are owned and operated by a major U.S. power producer. ADA was awarded this contract as the customers mercury control partner to address emissions from their plants burning Eastern and Western coals.
ADA will commence work immediately on the ACI systems and will recognize project revenues in the current quarter. The ACI systems are scheduled for delivery between late summer of 2013 and the end of 2014. This agreement is expected to generate total revenues of approximately $20 million to ADA over the next 24 months if the customer elects to purchase all of the contracted systems.
The contract is the result of the recent EPA Mercury and Air Toxics Standard (MATS), which requires coal-fired power plants to reduce emissions of mercury and sulfuric, hydrochloric and other acid gases by April 2015. ADA believes that MATS and other emission control regulations will generate a total market in excess of $1 billion for ACI and Dry Sorbent Injection (DSI) systems, and the company expects to maintain a combined market share of at least 35%. Achieving this market position would generate over $300 million in revenues for ADA over the next three years. The enactment of MATS has recently created a significant increase in ACI and DSI procurement activities, and ADA has been active in its response to this market. ADA recently announced awards for DSI and ACI systems with a potential total value of $15 million. In addition to these awards, ADA has active bids on over $119 million for ACI systems and over $140 million for DSI systems.
Dr. Michael Durham, President and CEO of ADA, stated, We are very pleased to announce this significant contract which puts us well ahead of our goal for a 35% market share. We expect that additional contracts for DSI and ACI systems will be awarded soon.
ADA is a leader in clean coal technology and the associated specialty chemicals, serving the coal-fueled power plant industry. Our proprietary environmental technologies and specialty chemicals enable power plants to enhance existing air pollution control equipment, minimize mercury, CO2 and other emissions, maximize capacity, and improve operating efficiencies, to meet the challenges of existing and pending emission control regulations.
With respect to mercury emissions:
- Through our consolidated subsidiary, Clean Coal Solutions, LLC (CCS), we provide our patented Refined Coal (RC) CyClean" technology to enhance combustion of and reduce emissions from burning Powder River Basin (PRB) coals in cyclone boilers and our patent pending M-45" technology for other types of coal and boilers. Both technologies reduce emissions of NOx and mercury in coal fired boilers.
- We supply Activated Carbon Injection (ACI) and Dry Sorbent Injection (DSI) systems, mercury measurement instrumentation, and related services.
- Under an exclusive development and licensing agreement with Arch Coal, we are developing and commercializing an enhanced PRB coal with reduced emissions of mercury and other metals.
In addition, we are developing CO2 emissions technologies under projects funded by the U.S. Department of Energy (DOE) and industry participants.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include statements or expectations regarding the amount and timing of revenues from and contracts for DSI and ACI systems, impact of EPA regulations, size of the market for DSI and ACI systems and related matters. These statements are based on current expectations, estimates, projections, beliefs and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to, changes in laws and regulations, government funding, prices, economic conditions and market demand; legal challenges to or repeal of laws and regulations including, but not limited to, the MATS; our inability to ramp up operations to effectively address expected growth in our target markets; impact of competition; availability, cost of and demand for alternative energy sources and other technologies; technical, start-up and operational difficulties; availability of raw materials and equipment; loss of key personnel; intellectual property infringement claims from third parties; and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.
Michael D. Durham, Ph.D., MBA, President
Mark H. McKinnies, Senior VP & CFO
Investor Relations Counsel
The Equity Group Inc.
Devin Sullivan, (212) 836-9608
Thomas Mei, (212) 836-9614
Source: ADA-ES, Inc.Copyright Business Wire 2012