Dr. Durham continued, “We remain focused on advancing these new RC facilities to full-time operation, and continue to believe that by the end of 2012 CCS will have enough RC facilities in operation to be generating pre-tax income of approximately $50 million per year to ADA for the remaining life of the tax credits after payments to our partners. We expect cash flows from the first of these new RC facilities to begin in the first half of 2012.”Dr. Durham concluded, “Although RC represents our most significant near-term cash flows, we are pursuing other growth opportunities from our portfolio of emission control technologies that are designed to enable our energy industry customers to comply with increasingly stringent government regulations. In December, the EPA announced that the Mercury and Air Toxics Standard (“MATS”) will require over 1,200 coal-fired power boilers to reduce emissions of mercury and other hazardous air pollutants. We expect that MATS implementation will expand the market opportunity for Activated Carbon Injection (“ACI”) systems to approximately $500-600 million, or 400-600 new systems over the next three years. We believe that we are well positioned to capitalize on this opportunity, given our 35% market share of ACI systems sold to coal-fired power plants across the country. Over the past 6 months, we have responded to a number of procurement requests for ACI systems and we expect awards to be announced once MATS is made final 60 days after it is published in the Federal Register. MATS is also expected to create a $500 million market for Dry Sorbent Injection (“DSI”) Systems to control acid gases. We were recently notified that our bid for DSI systems for a power generator was selected and we are currently negotiating a contract for our first commercial DSI system. In addition, we expect that the MATS regulation will create new markets for our other emissions control products that can help our customers comply with these regulations.”
About ADAADA is a leader in clean coal technology and the associated specialty chemicals, serving the coal-fueled power plant industry. Our proprietary environmental technologies and specialty chemicals enable power plants to enhance existing air pollution control equipment, minimize mercury, CO 2 and other emissions, maximize capacity, and improve operating efficiencies, to meet the challenges of existing and pending emission control regulations. With respect to mercury emissions:
- Through our consolidated subsidiary, Clean Coal Solutions, LLC (“CCS”), we provide our patented Refined Coal (“RC”) CyClean technology to enhance combustion of and reduce emissions from burning Powder River Basin (“PRB”) coals in cyclone boilers and our patent pending M-45 technology for other types of coal and boilers. Both technologies reduce emissions of NOx and mercury in coal fired boilers.
- We supply Activated Carbon Injection (“ACI”) and Dry Sorbent Injection (“DSI”) systems, mercury measurement instrumentation, and related services.
- Under an exclusive development and licensing agreement with Arch Coal, we are developing and commercializing an enhanced PRB coal with reduced emissions of mercury and other metals.