Calgon Carbon Corporation (NYSE: CCC) announced that the company and the City of Glendale, Arizona (Glendale), have signed a ten-year contract to provide reactivation services for activated carbon used to treat the city’s drinking water. The value of the contract will depend upon the amount of spent activated carbon that is reactivated annually, which is expected to be approximately 1.25 million pounds.
Glendale is using granular activated carbon (GAC) in response to the U.S. Environmental Protection Agency’s Stage 2 Disinfectants and Disinfection Byproducts Rule which establishes maximum levels at which disinfection byproducts (DBPs) are permitted to be present in drinking water. The GAC removes organic compounds from the water, reducing the formation of byproducts after the addition of chlorine. The city of Glendale chose this method rather than replacing chlorine with alternative disinfectants which would not be as effective and would produce other potentially harmful byproducts. Glendale has been using reactivated GAC for several years, and expects to realize significant savings under this new contract.
This is the third ten-year reactivation services contract that the company has secured in Arizona since the beginning of 2012. In March 2012, the company signed a ten-year contract with the City of Phoenix, Arizona, and in June 2012, the company signed another ten-year contract with the City of Scottsdale, Arizona. To support the needs of these three cities, as well as other cities throughout the southwestern United States, the company constructed a new state-of-the art reactivation facility in Gila Bend, Arizona. The reactivation facility, which began operations in April 2013, is owned and operated by Calgon Carbon and has an annual reactivation capacity of approximately 25 million pounds.
Commenting on the award, Bob O’Brien, executive vice president and chief operating officer of Calgon Carbon, said, “This contract affirms the city of Glendale’s commitment to the use of GAC as their primary means of complying with the US-EPA’s disinfection byproducts regulations. The city has been using reactivated carbon for a number of years, and their willingness to enter into a long-term contract demonstrates their belief in the economic and environmental benefits of reactivated GAC for drinking water treatment.”