Calgon Carbon Corporation (NYSE: CCC) and its exclusive distributor Brenntag Canada Inc. (Brenntag) have secured a contract from a large Canadian electricity generator for the supply of a new, second-generation advanced FLUEPAC® powdered activated carbon. Calgon Carbon’s FLUEPAC STF will be used to remove mercury from the flue gas of two coal-fired electric generating plants. The contract is an extension of an existing supply agreement for a first-generation advanced FLUEPAC product. The agreement will be in place through December 2015, and based on estimated demand, the cost to the customer is expected to be between $25 and $30 million. There is also an option in the distributor’s contract to extend the contract through 2017.
Calgon Carbon and Brenntag were awarded the contract following a rigorous testing program, conducted by the customer that required each potential supplier to provide activated carbon for full-scale performance testing. Several of Calgon Carbon’s advanced products were tested against competitors’ products, with FLUEPAC STF providing the best overall value solution to the electricity generator. In more than 20 full-scale tests, Calgon Carbon’s FLUEPAC products have consistently met rigorous treatment objectives, while using 50% to 70% less carbon than competing products.
Commenting on the announcement, Bill Zinsser, Vice President of Calgon Carbon, said, “This contract is a testament to the level of confidence that our electric utility and generation customers place in the quality and reliability of Calgon Carbon’s advanced FLUEPAC products. It also affirms our decision to invest in the development of advanced products that deliver more value.”
“Brenntag Canada is extremely pleased with the successful execution of the contract to supply activated carbon. Calgon Carbon's advanced FLUEPAC material and the support of Brenntag's local personnel and infrastructure were the winning combination in earning the ongoing carbon business,” said Michael Staley, President of Brenntag Canada Inc.
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Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making water and air safer and cleaner.