Charah Solutions (CHRA) - Get Report shares nearly doubled Friday after the provider of environmental services to the power-generation industry won a 12-year marketing contract from Dominion Energy (D) - Get Report to help with coal-sustainability efforts.
At last check shares of the Louisville, Ky., company rose 40% to $3.80. They've traded as high as a 52-week high $5.20 after closing Thursday at $2.71.
Dominion Energy shares were trading 0.8% higher at $71.58.
According to Virginia Senate Bill 1355, Dominion Energy needs to remove 15 million cubic yards of coal ash currently stored in two ponds at Chesterfield Power Station within 15 years. The station is located in Chester, Va., about 16 miles south of Richmond.
Per the agreement, Charah this year will install processing and transportation infrastructure to enable transport of the ash by rail from Chesterfield Power Station to cement kiln feed markets. Coal ash is used as an additive to concrete.
"Many utilities, like Dominion Energy, [increasingly need] to retire and decommission older generating assets while improving the environment," said Scott Sewell, president and chief executive of Charah Solutions.
Charah and Dominion have partnered on the Richmond, Va., energy supplier's sustainability efforts for many years, Sewell said.
Charah will distribute the ash through its network to cement and concrete producers as well as other customers that reuse the products.
The contract with Charah Solutions runs through 2032. Dominion Energy said it would store the remaining coal ash in an adjacent lined landfill.