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Leased and sold RC facilities expected to generate more than $110 million in annual revenues to CCS
HIGHLANDS RANCH, Colo., June 30, 2014 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (Nasdaq:ADES) (the "Company") today announced that Clean Coal Solutions, LLC ("CCS"), a joint venture among the Company's 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. As part of the transaction, CCS will receive more than $8 million in upfront cash payments. During 2014, CCS has operated 14 of its 28 RC facilities at coal-fired power plants that have historically burned more than 41 million tons per year. Ten of these RC facilities are now fully or partially leased or sold to four different RC investors, and are expected to generate more than $110 million in annual revenues to CCS. ADA-ES, Inc. owns 42.5% of CCS.
Remaining RC Facilities
CCS is involved in negotiations and plant specific activities for the remaining 14 RC facilities, each of which is expected to be placed at power plants that average more than 4 million tons of coal burned per year. Activities for each RC facility are being conducted in parallel and are in various stages proceeding toward eventual full-time operation. These include:
RC facilities where operating contracts are complete and the permanent installation is in its final stages;
RC facilities where permanent installation work is underway at the power plant; and
RC facilities with permanent installation work scheduled to begin in the coming months.
A subset of the 14 RC facilities, all of which will use M-45-PC
TM technology, is targeting power plants that average more than 5 million tons of coal burned per year. CCS is in ongoing discussions with multiple utilities who collectively own more than 20 power plants that are good candidates for its remaining RC facilities. Some of these utilities currently have CCS RC facilities in full-time operation at other of their coal plants.
We have also completed additional successful tests with our RC technology on bituminous coals. This further expands our markets.