ADA-ES Provides Refined Coal Update
Contracts for Two Existing Refined Coal Facilities Restructured
HIGHLANDS RANCH, Colo. -- March 12, 2013
ADA-ES, Inc. (NASDAQ:ADES) (“ADA” or the “Company”) today announced amendments
to the leases between its Clean Coal Solutions (CCS) joint venture and an
affiliate of Goldman Sachs (“Goldman”) for the two longest operating Refined
Coal (RC) facilities.
CCS and Goldman have amended the leases for the two longest operating RC
facilities to change the structure and timing of the lease payments. The
payments will be paid quarterly in advance and subject to adjustments for
inflation. Each lease has an initial non-cancellable term of two years and
will automatically renew, unless terminated at the option of the lessee
thereof, for successive one-year terms through November 9, 2021 and December
10, 2021, as applicable. Revenues to CCS are expected to remain at similar
levels as seen under the prior agreements.
Commenting on the outlook for the RC business, Dr. Michael D. Durham,
President and CEO, said, “With the restructuring of these agreements and our
recent closing of a RC facility with a third financial investor, our RC
business is back on track after several months of delays. We expect that the
recent resumption of the issuance of Private Letter Rulings for Section 45 RC
requests will assist with timely closing of contracts for a number of
additional RC facilities throughout this year and into 2014."
ADA is a leader in clean coal technology and the associated specialty
chemicals, serving the coal-fueled power plant industry. Our proprietary
environmental technologies and specialty chemicals enable power plants to
enhance existing air pollution control equipment, minimize mercury, CO[2 ]and
other emissions, maximize capacity, and improve operating efficiencies, to
meet the challenges of existing and pending emission control regulations.
With respect to mercury emissions:
*Through our consolidated subsidiary, Clean Coal Solutions, LLC (“CCS”), we
provide our patented Refined Coal (“RC”) CyClean™ technology to enhance
combustion of and reduce emissions of NOx and mercury from coals in
cyclone boilers and our patent pending M-45™ and M-45-PC™ technologies for
Circulating Fluidized Boilers and Pulverized Coal boilers respectively.
*We supply Activated Carbon Injection (“ACI”) and Dry Sorbent Injection
(“DSI”) systems, mercury measurement instrumentation, and related
*Under an exclusive development and licensing agreement with Arch Coal, we
are developing and commercializing an enhanced PRB coal with reduced
emissions of mercury and other metals.
In addition, we are developing CO emissions technologies under projects
funded by the U.S. Department of Energy (“DOE”) and industry participants.
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 future revenues and
the timing of the closing of contracts for the sale or lease of RC facilities.
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; failure to lease or sell the remaining RC facilities on a
timely basis; availability, cost of and demand for alternative tax credit
vehicles and other technologies; technical, start-up and operational
difficulties; availability of raw materials and equipment; loss of key
personnel; intellectual property infringement claims from third parties; 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
Graham Mattison, Vice President, Investor Relations, (646) 319-1417
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