ADA-ES, Inc. (NASDAQ: ADES) (“ADA”) announced that Clean Coal Solutions, LLC (“CCS”), ADA’s joint venture (JV) with an affiliate of NexGen Resources Corporation, and an affiliate of The Goldman Sachs Group, Inc., has finalized the contract for a fifth Refined Coal (RC) facility with a new RC investor. The RC facility, which uses ADA’s M-45 TM technology, is located at a power plant that has historically burned about three and a half million tons of coal per year. CCS has operated this facility for the past nine months during negotiation of definitive agreements and the restructuring of debt related to the power plant. During this period, the RC facility generated tax credits for the JV’s own use at a cost of approximately $1M per month to CCS. ADA expects to receive cash from the JV of approximately $10M as a result of the transaction, including previously deferred intercompany payments.
Dr. Michael D. Durham, President and CEO of ADA said, “We are very excited about completing this transaction with this new RC investor and look forward to a productive long-term relationship with them. As well, the transaction is generating significant cash flows for ADA and enabling us to provide a power generating customer with economic benefits resulting from the use of the technology, including decreased operating costs and decreased emissions of NOx and mercury.”
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 of NOx and mercury from coals in cyclone boilers and our patent pending M-45™ and M-45-PC™ technologies for Circulating Fluidized Boilers and Pulverized Coal boilers respectively.
- 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.