ADA-ES, Inc. (NASDAQ:ADES) (“ADA” or the “Company”) today announced amendments to the leases between its Clean Coal Solutions (CCS) joint venture and an affiliate of Goldman Sachs (“Goldman”) for the two longest operating Refined Coal (RC) facilities.
CCS and Goldman have amended the leases for the two longest operating RC facilities to change the structure and timing of the lease payments. The payments will be paid quarterly in advance and subject to adjustments for inflation. Each lease has an initial non-cancellable term of two years and will automatically renew, unless terminated at the option of the lessee thereof, for successive one-year terms through November 9, 2021 and December 10, 2021, as applicable. Revenues to CCS are expected to remain at similar levels as seen under the prior agreements.
Commenting on the outlook for the RC business, Dr. Michael D. Durham, President and CEO, said, “With the restructuring of these agreements and our recent closing of a RC facility with a third financial investor, our RC business is back on track after several months of delays. We expect that the recent resumption of the issuance of Private Letter Rulings for Section 45 RC requests will assist with timely closing of contracts for a number of additional RC facilities throughout this year and into 2014."
About ADAADA 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.