ADA-ES Reaffirms Activated Carbon Market Expectations

Tag : activated carbon

LITTLETON, Colo.-- (BUSINESS WIRE) -- ADA-ES, Inc. (NASDAQ: ADES)today reaffirmed its market expectations with regard to activatedcarbon (AC) for controlling mercury emission from coal-firedelectrical generating units.
Dr. Michael D. Durham, President and CEO of ADA-ES, stated, "Themercury control market continues to grow as a result of existingregulations in over 20 states and Canadian provinces. Although afew analysts have predicted a potential over-supply of AC, we arenot seeing that at all; rather, AC prices have been increasing,reflecting higher demand by the power industry. In fact, if thereis a company that has any available supply of high quality AC in2009 and beyond, foreign or domestic, we would certainly beinterested in talking to them. We are confident that we could sellwhatever volumes we can either produce or purchase."
In September, ADA-ES announced a firm fixed-price contract withLuminant Generation Company, LLC and ADA's subsidiary Red RiverEnvironmental Products, LLC with expected gross revenues ofapproximately $125 million over the initial term of the contract.This could increase by an additional $20 million to $40 millionbefore the end of the year. The Company had previously announcedanother AC sales contract valued in excess of $35 million. Over thepast three months, the Company has had follow-up discussions withseveral potential customers for long-term AC sales contracts inexcess of $500 million.
Dr. Durham continued, "ACI systems currently dominate our revenuesand are the precursors for the sales of AC. ACI system activity hasincreased over the last few months. Recent business developments inthis regard include: Release for engineering on two contracts in the Midwest with fullcontract releases expected soon Notification from a repeat customer of the intent to award for adual-silo system Notification of intent to award for an ACI system and optimizationtesting Notification from an OEM that they had been awarded the equipmentsupply contract on which ADA bid the ACI system.
Most of these ACI systems will be for units that must be installedin 2009 In addition, we have seen a significant increase in bid andproposal activity. Since the last update in August, we have bid orare bidding on 16 ACI system proposals."
About ADA-ES
ADA-ES is a leader in clean coal technology and the associatedspecialty chemicals. The Company develops and implementsproprietary environmental technology and specialty chemicals thatenable coal-fueled power plants to enhance existing air pollutioncontrol equipment, maximize capacity and improve operatingefficiencies. Through its largest and fastest-growing segment,Mercury Emission Control, ADA-ES supplies activated carboninjection systems, activated carbon, mercury measurementinstrumentation, and related services. To meet the needs of thepower industry for mercury control, the Company is developingstate-of-the-art facilities to produce activated carbon (AC) withthe first plant projected to come on-line in 2010. Additionally,the Company is developing technologies for power plants to addressissues related to the emissions of carbon dioxide.
This press release contains forward-looking statements within themeaning of Section 21E of the Securities Exchange Act of 1934,which provides a "safe harbor" for such statements in certaincircumstances. The forward-looking statements included in thisrelease include statements regarding expected contract awards andrequests for proposals, timing of commencement of operations at theplanned AC facility, value of existing and potential AC salescontracts; expected growth in the AC market, and our ability tosell additional AC. These statements are based on currentexpectations, estimates, projections, beliefs and assumptions ofour management. Such statements involve significant risks anduncertainties. Actual events or results could differ materiallyfrom those discussed in the forward-looking statements as a resultof various factors, including but not limited to, changes in thecosts and timing of construction of the planned AC facility;failure to raise additional equity financing needed for thefacility; failure to satisfy funding or other conditions in theequity financing agreements providing financing for the facility;inability to sign or close acceptable definitive agreements fordebt financing, coal supply or off-take agreements with respect tothe facility in a timely manner; availability of raw materials andtreatment and storage facilities; changes in laws or regulations,prices, economic conditions and market demand; impact ofcompetition and litigation; changes in the political landscape;availability and cost of alternative energy sources; operationaldifficulties; availability of skilled personnel and other factorsdiscussed in greater detail in our filings with the Securities andExchange Commission (SEC). You are cautioned not to place unduereliance on our forward-looking statements and to consult filingswe make with the SEC for additional risks and uncertainties thatmay apply to our business and the ownership of our securities. Ourforward-looking statements are presented as of the date made, andwe disclaim any duty to update such statements unless required bylaw to do so.
Copyright 2008 Business Wire All Rights Reserved.