LITTLETON, Colo.-- (BUSINESS WIRE) -- ADA-ES, Inc. (NASDAQ: ADES) today reaffirmed its market expectations with regard to activated carbon (AC) for controlling mercury emission from coal-fired electrical generating units.
Dr. Michael D. Durham, President and CEO of ADA-ES, stated, "The mercury control market continues to grow as a result of existing regulations in over 20 states and Canadian provinces. Although a few analysts have predicted a potential over-supply of AC, we are not seeing that at all; rather, AC prices have been increasing, reflecting higher demand by the power industry. In fact, if there is a company that has any available supply of high quality AC in 2009 and beyond, foreign or domestic, we would certainly be interested in talking to them. We are confident that we could sell whatever volumes we can either produce or purchase."
In September, ADA-ES announced a firm fixed-price contract with Luminant Generation Company, LLC and ADA's subsidiary Red River Environmental Products, LLC with expected gross revenues of approximately $125 million over the initial term of the contract. This could increase by an additional $20 million to $40 million before the end of the year. The Company had previously announced another AC sales contract valued in excess of $35 million. Over the past three months, the Company has had follow-up discussions with several potential customers for long-term AC sales contracts in excess of $500 million.
Dr. Durham continued, "ACI systems currently dominate our revenues and are the precursors for the sales of AC. ACI system activity has increased over the last few months. Recent business developments in this regard include:
Most of these ACI systems will be for units that must be installed in 2009 In addition, we have seen a significant increase in bid and proposal activity. Since the last update in August, we have bid or are bidding on 16 ACI system proposals."
ADA-ES is a leader in clean coal technology and the associated specialty chemicals. The Company develops and implements proprietary environmental technology and specialty chemicals that enable coal-fueled power plants to enhance existing air pollution control equipment, maximize capacity and improve operating efficiencies. Through its largest and fastest-growing segment, Mercury Emission Control, ADA-ES supplies activated carbon injection systems, activated carbon, mercury measurement instrumentation, and related services. To meet the needs of the power industry for mercury control, the Company is developing state-of-the-art facilities to produce activated carbon (AC) with the first plant projected to come on-line in 2010. Additionally, the Company is developing technologies for power plants to address issues related to the emissions of carbon dioxide.
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 included in this release include statements regarding expected contract awards and requests for proposals, timing of commencement of operations at the planned AC facility, value of existing and potential AC sales contracts; expected growth in the AC market, and our ability to sell additional AC. 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 the costs and timing of construction of the planned AC facility; failure to raise additional equity financing needed for the facility; failure to satisfy funding or other conditions in the equity financing agreements providing financing for the facility; inability to sign or close acceptable definitive agreements for debt financing, coal supply or off-take agreements with respect to the facility in a timely manner; availability of raw materials and treatment and storage facilities; changes in laws or regulations, prices, economic conditions and market demand; impact of competition and litigation; changes in the political landscape; availability and cost of alternative energy sources; operational difficulties; availability of skilled personnel 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 our forward-looking statements and to consult filings we make with the SEC 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.
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