By Denver Business Journal

Colorado clean-coal technology company ADA-ES Inc. said Monday it has been chosen as prime contractor for a $14 million U.S. Department of Energy project.

Littleton-based ADA (NASDAQ: ADES) will negotiate a new contract for a clean-coal technology project to capture carbon dioxide from coal-fired power plants, the company said.

The project will be administered by DOEâ¿¿s National Energy Technology Laboratory, which is providing $11.1 million of the funding. About $3 million is expected to come from various utility companies, including Southern Co. (NYSE: SO), Luminant and DTE Energy (NYSE: DTE), ADA said.

It said the project team includes Houston-based KBR Inc. (NYSE: KBR), which will provide engineering and equipment design services.

"The project will provide funding to advance ADAâ¿¿s commercialization plan for regenerable solid-sorbent technology, which is designed to capture carbon dioxide generated by coal-fired power plants," the company said in a statement.

"This year ADA began the first field tests of this technology on a $3.2 million program co-funded by DOE, as well as several major forward-thinking utility companies, and the initial results confirmed the promising performance ADA had demonstrated in the laboratory," the statement said. "Once captured, the carbon dioxide could be either stored underground (sequestration) or beneficially used in processes such as enhanced oil recovery. This technology appears to offer potential cost and energy advantages over competing liquid-solvent-based technologies."

Copyright 2010 American City Business Journals
Copyright 2010