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CCS JV finalizes contract with new Refined Coal investor
Leased and sold RC facilities expected to generate more than $100 million in annual revenues to CCS
HIGHLANDS RANCH, Colo., Feb. 18, 2014 (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 transferred the membership interests of a special purpose entity holding a Refined Coal ("RC") facility in exchange for fixed and variable payments that provide to CCS similar economics to those of its other leased and sold RC facilities in full-time operation. The limited liability company is 49.9% owned by a new RC investor with certain CCS affiliates, including an affiliate of the Company, holding the remaining equity. Through the combination of its ownership in CCS and its investment in the new limited liability company, the Company expects this structure to be slightly cash-flow positive, in addition to receiving its portion of tax benefits generated by the RC facility. The RC facility is located at a power plant that has historically burned about 5 million tons of Powder River Basin ("PRB") coal per year and is the first plant to use the new M-45-PC™ RC technology developed for use on pulverized coal ("PC") boilers.
In addition, CCS began operations of its first RC facility treating bituminous coal at a power plant that has historically burned more than six million tons of coal per year. This RC facility suspended operations in mid-February while final permitting is completed and progress is made to lease the plant.