Advanced Emissions Solutions, Inc. (the "Company") today provided
an operations update on its businesses.
Refined Coal Update ("RC")
The Company produces Refined Coal through Clean Coal Solutions,
LLC ("CCS"), a joint venture among our subsidiary ADA-ES, Inc.
(42.5%), an affiliate of NexGen Resources Corporation (42.5%), and
an affiliate of The Goldman Sachs Group, Inc. (15%).
CCS currently has 17 Refined Coal facilities in full-time
operations located at coal fired plants that collectively have
historically burned more than 54 million tons of coal per year.
Permanent installation work is underway for an additional six
Refined Coal facilities located at power plants that collectively
have historically burned more than 29 million tons of coal per
year. CCS is in discussions with multiple utilities for the
remaining Refined Coal facilities. The timing on these facilities
is dependent upon progress on contract negotiations and permitting
and in some cases permanent installation work may not begin until
the middle or late part of 2015 or possibly begin in 2016. The
Company now expects that all 28 RC facilities will be located at
coal fired plants that collectively have historically burned more
than 105 million tons of coal per year.
During the fourth quarter of 2014, CCS produced a total of 11.3
million tons of RC, of which 2.2 million tons were produced at RC
facilities that generated tax credits for the benefit of the
members of CCS.
Emissions Control ("EC")
The Company's subsidiary, ADA-ES Inc. ("ADA") has recently
broadened its Emission Control product offerings as the market
shifts towards compliance solutions for the federal Mercury Air
Toxics Standard ("MATS"), and away from equipment for MATS. These
products include ADA's M-ProveTM Coal Treatment Technology,
RESPondTM Flue Gas Conditioning, ProRakTM Mercury Analyzer as well
as EXPERTiTM Technology, a remote monitoring analytics and
technical advisory service that will help customers monitor and
better understand their MATS compliance strategy. These products
complement ADA's existing product offerings and further the reach
of ADA's decades of expertise in helping its customers comply with
existing and future emissions regulations.
For Emissions Control systems and equipment, at this time the
Company believes there are some remaining projects yet to be
awarded, however, the majority of MATS related equipment awards
have been made and the Company is now concentrating its efforts on
delivering its equipment in line with our customers' schedules.
Advanced Clean Energy Solutions ("ACES")
The Company's Development and Commercialization efforts are now
conducted through a newly formed subsidiary, Advanced Clean Energy
Solutions, LLC, formerly known as ADAtion. The Company's Chief
Technology Officer, Sharon Sjostrom, is the President of ACES,
which is focused on supporting and improving the Company's existing
products and identifying, developing and commercializing new
solutions to advance cleaner energy and to help our customers meet
existing and future regulatory and business challenges. Building
off the success of M-45TM and M-45-PCTM Technologies for Refined
Coal, ACES is currently working to develop and commercialize new
technologies to reduce a range of emissions associated with power
generation and oil & gas production. ACES has assembled a
strong team and follows a rigorous process focused on development
and maximizing the return on investment.
CO2 Capture
Through an ongoing Cooperative Agreement with the Department of
Energy, the Company expects to continue evaluating its ADASorbTM
post combustion CO2 capture process at the 1MW scale pilot plant in
2015. This is an example of the Company's continued commitment to
develop technologies to sustain the viability of coal while
limiting risk in uncertain commercial markets.
Proposed Business Separation
The Company continues to pursue the separation of the Refined
Coal-related business from its other Emissions Control-related
businesses. The Company's Chief Financial Officer, L. Heath
Sampson, is leading the Company's efforts around the separation in
coordination with the Finance Committee of the Board of Directors
and with external support from Moelis & Company as financial
advisor and Gibson, Dunn & Crutcher LLP and Fortis Law Partners
LLC as legal counsel to the Company.
About Advanced Emissions Solutions, Inc.
Advanced Emissions Solutions, Inc. 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-ProveTM 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 ("DOE") and industry participants.
Clean Coal Solutions, LLC ("CCS") is a 42.5% owned joint venture
by ADA that provides ADA's patented Refined Coal ("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 Clean Energy Solutions, LLC ("ACES") is a wholly owned
subsidiary of ADES that is focused on supporting and improving the
Company's existing products and identifying, developing and
commercializing new solutions to advance cleaner energy and to help
our customers meet existing and future regulatory and business
challenges. Building off the success of M-45™ and M-45-PC™
Technologies for Refined Coal, ACES is currently working to develop
and commercialize new technologies to reduce a range of emissions
associated with power generation and oil & gas production. ACES
has assembled a strong team and follows a rigorous process focused
on development and maximizing the return on investment.
BCSI, LLC 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. BCSI supplies Dry Sorbent Injection ("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 the timing of installation and operations
for remaining RC facilities; the ability to locate all 28 RC
facilities at coal fired plants that collectively have historically
burned more than 105 million tons of coal per year; the ability for
EXPERTiTM Technology to help the Company's customers monitor and
better understand their MATS compliance strategy; the continued
evaluation of the Company's ADASorbTM post combustion CO2 capture
process at the 1MW scale pilot plant and related matters. These
statements are based on current expectations, estimates,
projections, beliefs and assumptions of the Company's 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 economic conditions or
market demand; timing of or changes in laws, regulations, IRS
interpretations or guidance and any legal challenges to or repeal
of them; failure of the RC facilities to produce coal that
qualifies for tax credits; inability to commercialize the Company's
technologies on favorable terms; termination of or amendments to
the contracts for RC facilities; decreases in the production of RC;
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 the
Company's filings with the Securities and Exchange Commission
("SEC"). You are cautioned not to place undue reliance on such
statements and to consult the Company's SEC filings for additional
risks and uncertainties that may apply to the Company's business
and the ownership of its securities. The Company's forward-looking
statements are presented as of the date made, and the Company
disclaims any duty to update such statements unless required by law
to do so.
CONTACT: Graham Mattison
Vice President, Strategic Initiatives and Investor Relations
(720) 889-6206
graham.mattison@adaes.com
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