Calgon Carbon Wins 10-Year Reactivation Contract - Analyst Blog
November 05 2013 - 5:00PM
Zacks
Calgon Carbon
Corporation (CCC) has clinched the third ten-year
reactivation services contract in Arizona since the beginning of
2012. The company has signed the third contract with the City of
Glendale, under which it will provide reactivation services to the
latter for activated carbon used to treat the city’s drinking
water.
The value of the contract will depend on the amount of spent
activated carbon that is reactivated annually, which is expected to
be roughly 1.25 million pounds.
The city of Glendale which is located on the western side of the
Phoenix metropolitan area uses granular activated carbon (GAC). The
usage of GAC in the city is in compliance with the U.S.
Environmental Protection Agency’s Stage 2 Disinfectants and
Disinfection Byproducts Rule. The Rule sets up maximum levels at
which disinfection byproducts (DBPs) are permitted to be present in
drinking water.
Glendale has been using reactivated carbon for several years and
the contract underscores its belief in the economic and
environmental benefits of reactivated GAC for drinking water
treatment.
The uniqueness of GAC lies in its organic compounds removing
capacity from the water, which results in reducing the formation of
byproducts after the addition of chlorine. Glendale selected the
GAC method of reactivation service with the usage of chlorine as it
is more effective than other methods that uses alternative
disinfectants and carries a possibility of producing other
potentially harmful byproducts.
Prior to the Glendale contract, Calgon Carbon had entered into two
other ten-year contracts in Arizona since the start of 2012. One of
those was signed with the City of Phoenix in Mar 2012 and the other
one was signed with the City of Scottsdale in Jun 2012.
Calgon Carbon built a new advanced reactivation facility in
Gila Bend, Ariz., which came into operation in Apr 2013. The
reactivation facility was built to meet the requirements of the
three cities – Glendale, Phoenix and Scottsdale – besides other
cities throughout the southwestern U.S. The facility has an annual
reactivation capacity of roughly 25 million pounds.
Calgon Carbon retains a Zacks Rank
#2 (Buy).
Other companies in the pollution
control industry worth considering are Sharps Compliance
Corp. (SMED), CECO Environmental Corp.
(CECE) and Perma-Fix Environmental Services Inc.
(PESI). While Sharps Compliance carries a Zacks Rank #1 (Strong
Buy), both CECO Environmental and Perma-Fix Environmental hold a
Zacks Rank #2 (Buy).
CALGON CARBON (CCC): Free Stock Analysis Report
CECO ENVIRNMNTL (CECE): Free Stock Analysis Report
PERMA-FIX ENVIR (PESI): Free Stock Analysis Report
SHARPS COMPLIAN (SMED): Free Stock Analysis Report
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