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ADA-ES, Inc. (NASDAQ: ADES) (“ADA”) today announced that it has been awarded two contracts for activated carbon injection (ACI) systems and its wholly-owned subsidiary BCSI, LLC (“BCSI”) has been selected to supply up to four dry sorbent injection (“DSI”) systems as part of a larger air pollution control contract for a fleet of coal-fired generating plants. These contracts have a total value of up to $15 million if the fleet customer elects to purchase all of the contracted systems. These projects will begin generating revenues immediately and deliveries are scheduled over the next 15 months.
These awards are the result of the recent EPA Mercury and Air Toxics Standard (MATS) and the Cement MACT, which require coal-fired power plants and cement plants to reduce emissions of mercury and sulfuric, hydrochloric and other acid gases by April 2015. We are expecting these regulations to generate a market in excess of $1 billion for ACI and 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. These regulations have 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.
Dr. Michael Durham, President and CEO of ADA, stated, “We are very pleased to announce these contracts which represent the start of this new regulatory driven market. We expect that additional contracts for DSI and ACI systems will be awarded soon.”
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, CO
2 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 from burning Powder River Basin (“PRB”) coals in cyclone boilers and our patent pending M-45™ technology for other types of coal and boilers. Both technologies reduce emissions of NOx and mercury in coal fired boilers.
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 CO
2 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 the amount and timing of revenues from and contracts for DSI and ACI systems, impact of EPA regulations, size of the market for DSI and ACI 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, government funding, prices, economic conditions and market demand; legal challenges to or
repeal of laws and regulations; our inability to ramp up operations to effectively address expected growth in our target markets; difficulties in integration of BCSI operations; impact of competition; availability, cost of and demand for alternative energy sources and other technologies; technical, start-up 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.