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ADA-ES, Inc. (NASDAQ: ADES) (“ADA”) today announced that Michael D. Durham, President & CEO, and Mark McKinnies, SVP & CFO, are scheduled to present at the Baird 2012 Industrial Conference in Chicago on Monday, November 5, 2012 at 3:35 p.m. CT. A copy of the slides to be used at this event will be available via the Investor Information section of
www.adaes.com on or before November 5, 2012, and will also be filed on Form 8-K with the Securities and Exchange Commission.
In advance of the Baird presentation, ADA is providing an update on the Company’s progress along a number of fronts.
The EPA Mercury and Air Toxics Standard (MATS) requires that coal-fired power plants reduce emissions of mercury, sulfuric, hydrochloric and other acid gases by April 2015. We are expecting MATS to generate a market in excess of $1 billion for activated carbon injection (ACI) and dry sorbent injection (DSI) systems, and we hope to maintain a combined market share of at least 35%. This would generate over $300 million in revenues for ADA over the next three years.
MATS has created a significant increase in procurement activities and we have been very busy responding to this market. ADA has active bids on over $119 million for ACI systems and over $140 million on DSI systems.
The active bids for ACI and DSI systems do not include the bids that ADA has been notified to have won, but has not announced because the contracts have not yet been signed. These potential contracts, which could exceed $30 million if the power companies move forward on all the systems in the contracts, include providing ACI systems for the entire fleet of one power company, DSI systems for the fleet of a second electricity generator, an individual ACI system for a power plant, and an ACI system for a cement plant. We expect that these new awards will begin generating revenues to ADA in November and December of this year, and we will provide additional details once the contracts are signed.
ADA’s Clean Coal Solutions, LLC (“Clean Coal”) joint venture now has eight Refined Coal (“RC”) facilities in full-time operation on 15 coal-fired boilers. The seven RC facilities that were operational during Q3 2012 (the eighth RC facility began operating in October) produced approximately 5.3 million tons of RC. Based on year-to-date usage, ADA expects these eight RC facilities will, in the aggregate, produce approximately 16 million tons of coal in 2012, or approximately 20 million tons on an annual basis.
Four of the eight RC facilities are fully monetized. During Q3 2012, these facilities produced 2.8 million tons of RC.
Three of the eight RC facilities were operated by Clean Coal during Q3, but not yet monetized. During Q3 2012, these facilities generated tax credits for Clean Coal’s own use and produced approximately 2.5 million tons of RC.
Clean Coal has made significant progress in its discussions regarding various aspects of the transaction with a new, third party tax equity partner. Pending finalization of those matters and receipt of certain approvals from the utility and related bondholders, Clean Coal expects, by the end of the year, to have fully monetized an RC facility it is presently operating for its own account.
Dr. Durham commented, “Closings of several deals with power companies and tax equity partners for our RC facilities were delayed in Q2 and Q3 for various reasons, including: permitting, regulatory approval, corporate financial restructuring of related third parties, changes in plant ownership, changes and retirements of personnel involved in the negotiations, the need to involve additional parties in the transactions, and uncertainties in the tax credit community. As our previous disclosures have indicated, because of the complexities of each RC deal and the number of externalities that are outside our direct control and involvement, there was potential for delays beyond our initial estimates of 6-9 months to close the transactions.