- M-45-PC technology expands addressable market to larger volume power plants
- More than $20 million in new ACI and DSI awards
HIGHLANDS RANCH, Colo., Dec. 19, 2013 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (Nasdaq: ADES ) (the "Company") today announced that Clean Coal Solutions, LLC ("CCS"), a joint venture among its subsidiary ADA-ES, Inc., an affiliate of NexGen Resources Corporation, and an affiliate of The Goldman Sachs Group, Inc., has begun operations of a Refined Coal ("RC") facility that is treating pulverized coal ("PC") boilers using M-45-PC™ technology. The RC facility is located at a power plant that has historically burned about 5 million tons of coal per year. CCS is currently operating the RC facility and retaining the tax benefits generated while it is negotiating the lease or sale to potential RC investors.
CCS currently has 12 of its 28 RC facilities operating at coal burning power plants that have historically burned a total of more than 32 million tons per year. Work on operating contracts for the additional RC facilities is ongoing and CCS is on track to begin full-time operations for an additional five RC facilities by the end of the first quarter of 2014, including two that we expect will use the M-45-PC technology. We continue to expect that all RC facilities will be placed in full-time operation by the end of 2014.
Emissions Control Equipment
Separately, since September 30, 2013, the Company has been awarded more than $20 million in new orders for Activated Carbon Injection ("ACI") systems and Dry Sorbent Injection ("DSI") systems from multiple utilities, including a fleet-wide contract for ACI systems from a large utility. These awards are the result of the recent EPA Mercury and Air Toxics Standard ("MATS"), which requires compliance beginning in April 2015. Work has begun on some of the new projects and deliveries of the systems are scheduled to begin in 2014. During 2013, the Company has won more than $88 million in emissions control equipment awards, including multiple fleet-wide contracts from major utilities.
Dr. Michael D. Durham, President and CEO of Advanced Emissions Solutions, said, "We are excited to have begun operations of an RC facility using M-45-PC technology in less than nine months of its initial full-scale demonstration. M-45-PC technology expands the potential market for our RC facilities to customers with a greater number of larger power plants and who are willing to move quickly toward full-time operation. Also, we are proud to be selected by our customers to provide them with solutions to meet the new federal MATS rules. The market for equipment is well underway and evolving as we expected. We have taken a number of steps to be ready for this market, including growing our engineering capabilities, and have put in place arrangements with various suppliers and component manufacturers to meet the growing market demand."
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 ("BCSI") 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, 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.
Graham Mattison Vice President, Investor Relations (646) 319-1417
