- Clean Coal Solutions leases additional RC facility
- Leased and sold RC facilities expected to generate more than $110 million in annual revenues to CCS
HIGHLANDS RANCH, Colo., June 30, 2014 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (Nasdaq:ADES) (the "Company") today announced that Clean Coal Solutions, LLC ("CCS"), a joint venture among the Company's subsidiary ADA-ES, Inc., an affiliate of NexGen Resources Corporation, and an affiliate of The Goldman Sachs Group, Inc., has leased an additional Refined Coal ("RC") facility to an existing RC investor. As part of the transaction, CCS will receive more than $8 million in upfront cash payments. During 2014, CCS has operated 14 of its 28 RC facilities at coal-fired power plants that have historically burned more than 41 million tons per year. Ten of these RC facilities are now fully or partially leased or sold to four different RC investors, and are expected to generate more than $110 million in annual revenues to CCS. ADA-ES, Inc. owns 42.5% of CCS.
Remaining RC Facilities
CCS is involved in negotiations and plant specific activities for the remaining 14 RC facilities, each of which is expected to be placed at power plants that average more than 4 million tons of coal burned per year. Activities for each RC facility are being conducted in parallel and are in various stages proceeding toward eventual full-time operation. These include:
- RC facilities where operating contracts are complete and the permanent installation is in its final stages;
- RC facilities where permanent installation work is underway at the power plant; and
- RC facilities with permanent installation work scheduled to begin in the coming months.
A subset of the 14 RC facilities, all of which will use M-45-PCTM technology, is targeting power plants that average more than 5 million tons of coal burned per year. CCS is in ongoing discussions with multiple utilities who collectively own more than 20 power plants that are good candidates for its remaining RC facilities. Some of these utilities currently have CCS RC facilities in full-time operation at other of their coal plants.
We have also completed additional successful tests with our RC technology on bituminous coals. This further expands our markets.
CCS has completed transactions with four RC investors. Discussions for investments in additional RC facilities continue with these and other RC investors, including a new investor who plans to invest in multiple RC facilities.
Dr. Michael D. Durham, President and CEO of Advanced Emissions Solutions said, "We are pleased to have leased an additional RC facility and we look forward to working with this utility and RC investor in the future. Momentum at CCS continues to build as our technologies are showing benefits over other refined coal additives and the new senior leadership furthers its success working with utilities, moving forward deals with investors, and operating the rapidly growing business. We continue to work toward maximizing the tons of coal treated by our 28 RC facilities expected to be in full-time operation by the end of 2014 and look forward to accelerating success in the coming months as additional RC facilities begin full-time operation and are leased or sold to RC investors."
About Advanced Emissions Solutions, Inc.
Advanced Emissions Solutions, Inc. (Nasdaq:ADES) serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries.
ADA-ES, Inc. ("ADA") supplies Activated Carbon Injection ("ACI") systems for mercury control, Dry Sorbent Injection ("DSI") systems for acid gases, and technology services and other offerings in support of our customers' emissions compliance strategies. ADA's M-ProveTM technology, which reduces emissions of mercury and other metals from PRB coal, is applied directly to coal at power plants, or offered through a licensing agreement with Arch Coal for application at their mines. In addition, we are developing technologies to advance cleaner energy, including CO2 emissions control technologies through projects funded by the U.S. Department of Energy ("DOE") and industry participants.
Clean Coal Solutions, LLC ("CCS"), is a 42.5% owned joint venture by ADA that provides ADA's patented Refined Coal ("RC") CyClean™ technology to enhance combustion of and reduce emissions of NOx and mercury from coals in Cyclone Boilers and ADA's patent pending M-45™ and M-45-PC™ technologies for Circulating Fluidized Boilers and Pulverized Coal Boilers respectively. Advanced Emissions Solutions consolidates the results of CCS in its financial statements.
BCSI, LLC is a custom designer and fabricator of engineered emissions control technologies, bulk material handling equipment, bulk storage systems, water/waste water treatment equipment, and custom components. BCSI supplies Dry Sorbent Injection ("DSI") systems for acid gas control using its technologically advanced cool, dry conditioned conveying air systems. BCSI's technical solutions serve a wide range of industrial clients including; coal fired utilities, water treatment, wastewater, cement kilns, food processing and industrial boilers. BCSI employs engineers and trade professionals at a 190,000+sq. ft. fabrication and office facility located in McKeesport, PA.
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 expected timing of operations of RC facilities, expected operation of RC facilities, revenues, type of coal to be treated 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, regulations and IRS interpretations or guidance, economic conditions and market demand; timing of laws, regulations and any legal challenges to or repeal of them; failure of the RC facilities to produce coal that qualifies for tax credits; termination of or amendments to the contracts for RC facilities; decreases in the production of RC; availability, cost of and demand for alternative tax credit vehicles and other technologies; technical and operational difficulties; availability of raw materials and equipment; loss of key personnel; intellectual property infringement claims from third parties; impact of the weather 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.
CONTACT: Graham Mattison Vice President, Investor Relations (720) 889-6206 firstname.lastname@example.orgSource:Advanced Emissions Solutions, Inc.