Calgon Carbon Corporation (NYSE: CCC) announced that it has been awarded a contract by a major U.S. power generator to supply FLUEPAC® brominated powdered activated carbon (PAC) to remove mercury from the fluegas of coal-fired power plants in the Midwest. The value of the contract is estimated to be $16 to $22 million.
The two-year contract follows the expiration of a five-year, take-or-pay supply agreement between the two companies. Calgon Carbon will provide certain electric generating units with 100% of their activated carbon requirements for mercury removal for a period of two years. The agreement includes an option to extend the contract through 2015. Under terms of the agreement, the price of the FLUEPAC carbon will be adjusted annually based on certain Producer Price indices which are published by the U.S. Bureau of Labor Statistics.
“We are extremely pleased with this customer’s decision to continue use of our FLUEPAC carbon. It clearly demonstrates confidence in the quality and reliability of our product to meet stringent state regulations for control of mercury emissions from power plant flue gas,” commented Jim Sullivan, Calgon Carbon’s senior vice president – Americas’ operations.
Calgon Carbon’s standard and advanced FLUEPAC products were developed specifically for the emerging mercury removal market and have been proven to meet or exceed the performance requirements of the U.S. EPA’s Mercury and Air Toxic Standards (MATS). In full-scale tests, the company’s new advanced FLUEPAC carbons not only exceeded performance standards but were also proven to reduce activated carbon injection rates by 50 – 70% as compared to standard products.Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner. For more information about Calgon Carbon’s leading activated carbon and ultraviolet technology solutions for municipalities and industries, visit www.calgoncarbon.com. This news release contains historical information and forward-looking statements. Forward-looking statements typically contain words such as “expect,” “believe,” “estimate,” “anticipate,” or similar words indicating that future outcomes are uncertain. Statements looking forward in time, including statements regarding future growth and profitability, price increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in the company’s most recent Annual Report pursuant to the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995. They involve known and unknown risks and uncertainties that may cause the company’s actual results in future periods to be materially different from any future performance suggested herein. Further, the company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the company’s control. Some of the factors that could affect future performance of the company are higher energy and raw material costs, costs of imports and related tariffs, labor relations, availability of capital and environmental requirements as they relate both to our operations and to our customers, changes in foreign currency exchange rates, borrowing restrictions, validity of patents and other intellectual property, and pension costs. In the context of the forward-looking information provided in this news release, please refer to the discussions of risk factors and other information detailed in, as well as the other information contained in the company’s most recent Annual Report.