(NYSE: CBT) announced that it has entered into a contract to provide its
family of activated carbon products to a large Midwestern power generator in the U.S. While Cabot currently supplies activated carbon to many utilities for compliance with certain state-based regulations, this is believed to be the first contract awarded in the market for compliance with the federal Mercury and Air Toxics Standard (MATS) as the industry prepares for this regulation to take effect in April 2015. The contract is valued at up to $8 million and will allow the utility to meet stringent federal regulations for mercury emissions.
Mercury is released into boiler flue gas when coal is burned to generate electricity. With over 50 percent of mercury emissions in the U.S. coming from coal-fired power plants, the U.S. Environmental Protection Agency (EPA) has issued regulatory mandates that are scheduled to become effective in April 2015. Specifically, the MATS regulation establishes power plant emission limits for mercury and other toxic pollutants. As a result of these mandates, about 90 percent of the mercury emitted by coal-fired power plants will be captured instead of released into the air. Based on numerous Department of Energy and EPA sponsored tests and customer trials, Cabot’s DARCO Hg family of powdered activated carbon has proven to be a highly effective solution to reduce mercury emissions.
Under this contract that begins in 2015, Cabot will supply DARCO Hg, DARCO Hg-LH and DARCO Hg-LH Extra powdered activated carbon products to be used for 100 percent of this utility’s requirements at thirteen boilers in the Midwestern utility’s service area through 2016. With the addition of this contract, Cabot’s DARCO Hg family of products for mercury control has been selected for use in over 70 units throughout the U.S. and Canada.