Awards Highlight ADA's Continued Success in the Emission Control Equipment Market
Company Notes Its Existing Capacity to Win More Work
HIGHLANDS RANCH, Colo., May 2, 2013 (GLOBE NEWSWIRE) -- ADA-ES, Inc. (Nasdaq:ADES) ("ADA") today announced that it has recently received awards and letters of intent to award for approximately $30 million in Activated Carbon Injection (ACI) and Dry Sorbent Injection (DSI) systems from multiple utilities. Work has begun on some of the projects and deliveries of the systems are scheduled to begin in 2014.
These awards are 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 the MATS and other emission control regulations could generate a total market in excess of $1 billion for ACI and DSI systems. Since the MATS market commenced in 2011, ADA has won or received letters of intent to award contracts currently valued at approximately $75 million for DSI and ACI systems. We are currently working on bids or discussing potential projects for ACI and DSI systems in excess of $180 million.
Dr. Michael Durham, President and CEO of ADA, stated, "We are very pleased to be awarded these projects by our customers and proud to provide them with solutions to ensure compliance with the new federal rules. The market for equipment to meet the federal MATS rules is well underway and evolving as we expected. ADA has taken a number of steps to prepare for this market, including the August 2012 acquisition of the assets of Bulk Conveyor Specialist, Inc., a leading provider of DSI systems. In addition, we have grown our engineering capabilities and have put in place arrangements with various suppliers and component manufacturers to meet the growing market demand. With the increase in cash flows from our Refined Coal business, including the recent $10 million payment from the sale of a new facility, we have the resources to execute effectively on this rapidly growing business and help our customers meet the MATS timelines."
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 of NOx and mercury from coals in cyclone boilers and our patent pending M-45™ and M-45-PC™ technologies for Circulating Fluidized Boilers and Pulverized Coal boilers respectively.
- 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 expected deliveries of ACI and DSI systems, future markets for ACI and DSI systems, future contracts for ACI and DSI 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, economic conditions and market demand; timing of laws, regulations and any legal challenges to or repeal of them; availability, cost of and demand for other technologies; technical 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.