- 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
During January and the first part of February, CCS had 13 of its 28 RC facilities operating at coal-fired power plants that have historically burned more than 38 million tons per year. Nine of these RC facilities are now fully or partially leased or sold to four different RC investors, and are expected to generate more than $100 million in annual revenues to CCS.Remaining RC facilities Extreme winter weather conditions, along with changes in ownership of several coal-fired power plants, have resulted in delays in the installation of some of the RC facilities that we previously expected to begin full-time operation by the end of the first quarter. Progress on installation work continues on these and other RC facilities and we expect full-time operations in the coming months. As negotiations continue with additional parties to lease these facilities, we believe the delays in start-up could reduce the length of time that CCS has to fund the operation of the facilities while retaining the tax benefits generated. Fourth Quarter 2013 Refined Coal Production During the fourth quarter of 2013, CCS had 12 RC facilities in full-time operation that produced a total of 6.9 million tons of RC, of which 1.7 million tons were produced at RC facilities that generated tax credits for CCS. Dr. Michael D. Durham, President and CEO of Advanced Emissions Solutions, said, "We are excited about completing this transaction with this new RC investor and look forward to a productive long-term relationship. After two months of operation, we are very pleased with the performance of our new M-45-PC TM technology, which we expect to implement with 11 of our RC facilities which will be located at large power plants burning both PRB and bituminous coals. We continue to make progress with multiple utilities and RC investors with the goal of installing and operating all 28 RC facilities by the end of 2014." About Advanced Emissions Solutions, Inc. Advanced Emissions Solutions, Inc. (Nasdaq:ADES) serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries.
ADA-ES, Inc. ("ADA") supplies Activated Carbon Injection ("ACI") systems for mercury control, Dry Sorbent Injection ("DSI") systems for acid gases, and technology services and other offerings in support of our customers' emissions compliance strategies. ADA's M-Prove TM technology, which reduces emissions of mercury and other metals from PRB coal, is applied directly to coal at power plants, or offered through a licensing agreement with Arch Coal for application at their mines. In addition, we are developing technologies to advance cleaner energy, including CO2 emissions control technologies through projects funded by the U.S. Department of Energy and industry participants.Clean Coal Solutions, LLC, is a 42.5% owned joint venture by ADA that provides ADA's patented RC CyClean™ technology to enhance combustion of and reduce emissions of NOx and mercury from coals in cyclone boilers and ADA's patent pending M-45™ and M-45-PC™ technologies for Circulating Fluidized Boilers and Pulverized Coal boilers respectively. Advanced Emissions Solutions consolidates the results of CCS in its financial statements. BCSI, LLC ("BCSI") is a custom designer and fabricator of engineered emissions control technologies, bulk material handling equipment, bulk storage systems, water/waste water treatment equipment, and custom components. BSCI supplies DSI systems for acid gas control using its technologically advanced cool, dry conditioned conveying air systems. BCSI's technical solutions serve a wide range of industrial clients including; coal fired utilities, water treatment, wastewater, cement kilns, food processing and industrial boilers. BCSI employs engineers and trade professionals at a 190,000+sq. ft. fabrication and office facility located in McKeesport, PA. This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include statements or expectations regarding expected timing of operations of RC facilities, cash flows, revenues, tax credits, type of coal to be treated and related matters. These statements are based on current expectations, estimates, projections, beliefs and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to changes in laws, regulations and IRS interpretations or guidance, economic conditions and market demand; timing of laws, regulations and any legal challenges to or repeal of them; failure of the RC facilities to produce coal that qualifies for tax credits; termination of or amendments to the contracts for RC facilities; decreases in the production of RC; availability, cost of and demand for alternative tax credit vehicles and other technologies; technical and operational difficulties; availability of raw materials and equipment; loss of key personnel; intellectual property infringement claims from third parties, impact of the weather and other factors discussed in greater detail in our filings with the Securities and Exchange Commission ("SEC"). You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.
CONTACT: Graham Mattison Vice President, Investor Relations (646) 319-1417 firstname.lastname@example.org