ADA-ES Purchases Activated Carbon Processing, Storage, And Transportation Equipment

Littleton, CO -- ADA-ES, Inc. announced that it has acquired the assets of an activated carbon (AC) processing facility in the south central United States. The purchased assets include 500,000 pounds of AC inventory, process equipment for chemical treatment, milling and storage of AC, and six pneumatic discharge trailers for transporting AC to utility customers. In addition to the purchase of assets, ADA-ES agreed to sign a three-year facility lease to rent the facility currently being used by the owner of the assets.

In January, ADA-ES used this equipment and activated carbon to successfully produce its first batches of AC specifically prepared for mercury capture. In February, ADA-ES completed full-scale performance tests of this treated AC product at a power plant burning Western Powder River Basin coal. By injecting ADA-ES AC at a very competitive feed rate, mercury emissions were reduced by greater than 90%. The Western coal application for the initial test was chosen because the majority of the early market for mercury control is for plants that burn western coals. In order to control mercury emissions for these plants, it is necessary to use a higher priced, chemically-treated AC.

Separately, the Company announced that it has entered into a non-binding letter of intent (LOI) for a supply agreement that would entitle ADA-ES to purchase AC beginning in 2008 with quantities increasing to 27 million pounds during 2009. Under this agreement, ADA-ES would source the activated carbon from a single off-shore production plant utilizing a subbituminous coal source. Completion of the transaction is subject to negotiation and execution of definitive agreements and ADA-ES' inspection of the AC production site and coal mine.

Dr. Michael Durham, President and CEO of ADA-ES, commented, "We view this purchase of the AC and processing facility and the LOI for AC supply as additional significant milestones for us as we will now have our own AC product to sell to our utility customers. Our interim supply plan creates potential for increased AC sales revenue in 2008 and 2009, and should enable us to compete for long-term AC supply contracts that require AC supply prior to our planned startup of a US-based AC production plant."

SOURCE: ADA-ES, Inc.