Fuel Tech Announces Extension of ITOCHU Teaming Agreement to Pursue ...

Tag : industrial engineering
Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advancedengineering solutions for the optimization of combustion systems inutility and industrial applications, today announced that it hassigned an extension to the exclusive teaming agreement with ITOCHUHong Kong Ltd., a subsidiary of ITOCHU Corporation. The amendedagreement, originally signed in June 2007, extends the exclusivityperiod through March 31, 2009. During this time, ITOCHU willcontinue to work with Fuel Tech on its existing FUEL CHEM(R)demonstration on a large coal-fired utility unit in the People'sRepublic of China (PRC), as well as identify other potentialcustomers in the PRC for Fuel Tech's FUEL CHEM(R) program. Theextension of the teaming agreement is needed due to the on-goingcontinuation of the TIFI(TM) Targeted In-Furnace Injection(TM)demonstration and increased sales activities, which are expected tolead to additional demonstrations on coal-fired combustion units inthe PRC in the near future.

ITOCHU, one of the world's largest companies, maintains anextensive sales force that sells a variety of products and servicesto combustion unit customers in the PRC. Fuel Tech and ITOCHU willcontinue to act as equal team members under the agreement andoperate under a joint management board. Each company sharesfinancial responsibility under the agreement and Fuel Tech willcontinue to retain all intellectual property rights associated withthe FUEL CHEM program.

John F. Norris Jr., President and Chief Executive Officer,commented, "We are very excited to extend our teaming agreementwith ITOCHU as we continue to leverage their sales and supportnetwork throughout the People's Republic of China. With the world'slargest fleet of coal-fired power plants, the PRC offers anattractive market for Fuel Tech's proprietary TIFI technology,which is designed to offer benefits in energy efficiency gains,reduced air pollutant and CO2 emissions, reduced operating andmaintenance costs, and improved safety for power plants and othercombustion units. By leveraging the complementary skill sets ofeach organization, more rapid penetration of this importantgeographic area can be achieved."

About Fuel Tech

Fuel Tech is a leading technology company engaged in the worldwidedevelopment, commercialization and application of state-of-the-artproprietary technologies for air pollution control, processoptimization, and advanced engineering services. These technologiesenable customers to produce both energy and processed materials ina cost-effective and environmentally sustainable manner.

The Company's nitrogen oxide (NOx) reduction technologies includethe NOxOUT(R), NOxOUT CASCADE(R), NOxOUT ULTRA(R), Rich ReagentInjection (RRI) and NOxOUT-SCR(R) processes. These technologieshave established Fuel Tech as a leader in post-combustion NOxcontrol systems, with installations on over 450 units worldwide,where coal, municipal waste, biomass, and other fuels are utilized.

The Company's FUEL CHEM(R) technology revolves around the uniqueapplication of chemicals to improve the efficiency, reliability,fuel flexibility and environmental status of combustion units bycontrolling slagging, fouling, corrosion, opacity and acid plume,as well as the formation of sulfur trioxide, ammonium bisulfate,particulate matter (PM2.5), carbon dioxide and NOx. Thistechnology, in the form of a customizable FUEL CHEM program, isbeing applied to 100 combustion units burning a wide variety offuels including coal, heavy oil, biomass, and municipal waste. Abreakdown of the nature of these customer units is posted on theCompany's website.

Many of Fuel Tech's products and services rely heavily on theCompany's exceptional Computational Fluid Dynamics modelingcapabilities, which are enhanced by internally developed, high-endvisualization software. These capabilities, coupled with theCompany's innovative technologies and multi-disciplined teamapproach, enable Fuel Tech to provide practical solutions to someof our customers' most challenging problems. For more information,visit Fuel Tech's web site at www.ftek.com.

About ITOCHU

ITOCHU is one of the leading General Trading Firms, or "SogoShosha," and a Fortune Global 500 company. During its 150 yearhistory, ITOCHU has been engaged in trading various products suchas textiles, machinery, information and communications-relatedproducts, metals, products related to oil and other energy sources,general merchandise, chemicals, and provisions and food. With over150 offices in more than 70 countries, ITOCHU Corporation boastsone of the most extensive business networks in the world. ITOCHUwas one of the first foreign trading companies in the PRC, startingoperations in 1972, and today has 17 offices and over 500 people inits PRC operations. For more information, please visit ITOCHUCorporation's home page athttp://www.itochu.co.jp/main/index_e.html.

This press release may contain statements of a forward-lookingnature regarding future events. These statements are onlypredictions and actual events may differ materially. Please referto documents that Fuel Tech files from time to time with theSecurities and Exchange Commission for a discussion of certainfactors that could cause actual results to differ materially fromthose contained in the forward-looking statements.