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Leases another operating facility and begins full-time operations of a new facility
6 new facilities scheduled to begin full-time operations by the end of 1Q14
Technological improvements expand the addressable market to include plants burning bituminous coal
HIGHLANDS RANCH, Colo., Oct. 29, 2013 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (Nasdaq:ADES) (the "Company") today announced that Clean Coal Solutions, LLC ("CCS"), a joint venture among its subsidiary ADA-ES, Inc., an affiliate of NexGen Resources Corporation, and an affiliate of The Goldman Sachs Group, Inc., has leased an additional Refined Coal ("RC") facility to an existing RC investor. CCS now has eight leased or sold facilities that are located at coal-fired power plants that have historically burned a total of about 25 million tons per year and are expected to generate more than $85 million in annual revenues to CCS. As a result of the transaction, CCS has received approximately $6 million in upfront cash payments and has eliminated more than $4 million in annualized operating expenses that CCS would incur if continuing to operate the RC facility to generate tax benefits for its members.
Separately, CCS has begun full-time operations of an additional RC facility located at a coal-fired power plant that has historically burned approximately 3 million tons of coal per year. CCS will operate and retain the tax benefits generated by the facility until it is leased or sold to an RC investor. In total, CCS has 11 of its 28 RC facilities operating full-time, including two other RC facilities that are generating tax benefits for its members, located at power plants that have historically burned a total of about 30 million tons per year of coal.
6 Facilities Scheduled to Begin Full-time Operations by the end of the 1st Quarter 2014
CCS is in the process of installing two facilities on pulverized coal ("PC") boilers that will use M-45-PC™ technology, which are scheduled to begin operation before year-end. CCS is also moving forward on four additional RC facilities that are scheduled to begin operation by the end of the 1
st quarter of 2014. These facilities will be located at coal-fired power plants that collectively have burned more than 25 million tons of coal per year. CCS is in discussions with RC investors to lease or sell these facilities. CCS plans to begin operating these facilities as soon as the utility contracts and various permitting steps have been completed, if agreements have not then been finalized with RC investors for the lease or sale of these facilities. With eight RC facilities leased or sold to investors generating more than $85 million in annual payments, CCS has sufficient resources to fund the operation of these facilities while contracts with RC investors are finalized.
In another important accomplishment, CCS has recently achieved Section 45 qualifying emissions reductions on both cyclone and PC boilers burning bituminous coals. The ability to operate at plants burning bituminous coal has expanded the potential market for CCS and its RC technologies and has accelerated the marketing of RC facilities. CCS is in parallel discussions with multiple utilities and investors for the remaining RC facilities, including power plants that have expressed a high level of interest in RC and that collectively burn more than 50 million tons of coal per year. Many of the targeted plants are owned by power companies with multiple target plants and in some cases these power companies have already done Section 45 RC transactions. We continue to expect that all facilities will be placed in full-time operation by the end of 2014.