Advanced Emissions Solutions Provides Refined Coal Update

Advanced Emissions Solutions Provides Refined Coal Update

  *Leases another operating facility and begins full-time operations of a new
    facility
  *6 new facilities scheduled to begin full-time operations by the end of
    1Q14
  *Technological improvements expand the addressable market to include plants
    burning bituminous coal

HIGHLANDS RANCH, Colo., Oct. 29, 2013 (GLOBE NEWSWIRE) -- Advanced Emissions
Solutions, Inc. (Nasdaq:ADES) (the "Company") today announced that Clean Coal
Solutions, LLC ("CCS"), a joint venture among its subsidiary ADA-ES, Inc., an
affiliate of NexGen Resources Corporation, and an affiliate of The Goldman
Sachs Group, Inc., has leased an additional Refined Coal ("RC") facility to an
existing RC investor. CCS now has eight leased or sold facilities that are
located at coal-fired power plants that have historically burned a total of
about 25 million tons per year and are expected to generate more than $85
million in annual revenues to CCS. As a result of the transaction, CCS has
received approximately $6 million in upfront cash payments and has eliminated
more than $4 million in annualized operating expenses that CCS would incur if
continuing to operate the RC facility to generate tax benefits for its
members.

Separately, CCS has begun full-time operations of an additional RC facility
located at a coal-fired power plant that has historically burned approximately
3 million tons of coal per year. CCS will operate and retain the tax benefits
generated by the facility until it is leased or sold to an RC investor. In
total, CCS has 11 of its 28 RC facilities operating full-time, including two
other RC facilities that are generating tax benefits for its members, located
at power plants that have historically burned a total of about 30 million tons
per year of coal.

6 Facilities Scheduled to Begin Full-time Operations by the end of the 1st
Quarter 2014

CCS is in the process of installing two facilities on pulverized coal ("PC")
boilers that will use M-45-PC™ technology, which are scheduled to begin
operation before year-end. CCS is also moving forward on four additional RC
facilities that are scheduled to begin operation by the end of the 1^st
quarter of 2014.These facilities will be located at coal-fired power plants
that collectively have burned more than 25 million tons of coal per year.CCS
is in discussions with RC investors to lease or sell these facilities.CCS
plans to begin operating these facilities as soon as the utility contracts and
various permitting steps have been completed, if agreements have not then been
finalized with RC investors for the lease or sale of these facilities. With
eight RC facilities leased or sold to investors generating more than $85
million in annual payments, CCS has sufficient resources to fund the operation
of these facilities while contracts with RC investors are finalized.

Additional Facilities

In another important accomplishment, CCS has recently achieved Section 45
qualifying emissions reductions on both cyclone and PC boilers burning
bituminous coals.The ability to operate at plants burning bituminous coal has
expanded the potential market for CCS and its RC technologies and has
accelerated the marketing of RC facilities.CCS is in parallel discussions
with multiple utilities and investors for the remaining RC facilities,
including power plants that have expressed a high level of interest in RC and
that collectively burn more than 50 million tons of coal per year.Many of the
targeted plants are owned by power companies with multiple target plants and
in some cases these power companies have already done Section 45 RC
transactions.We continue to expect that all facilities will be placed in
full-time operation by the end of 2014.

Dr. Michael D. Durham, President and CEO of Advanced Emissions Solutions said,
"We are pleased to have leased an additional RC facility and to have begun
full-time operations on another facility.The pace of our RC business is
accelerating with 6 additional RC facilities scheduled to begin operations in
the coming months and good progress on the remaining facilities.CCS is
continuing its discussions with multiple RC investors for these facilities and
is working towards leasing or selling the facilities simultaneously or
following commencement of permanent operations.During those initial
operations, CCS uses cashflows from leased RC facilities to fund operations,
and the Company reports the near-term impact on GAAP results in the form of
increased expenses while accruing tax credits. We have found that getting the
RC facilities operating as soon as we complete the contracts with the power
company is a critical step toward finalizing agreements with third party
investors and moves us toward our goal of having all 28 systems in full-time
operations, with a mix of leased and sold facilities and retained facilities
to balance cashflows with available tax credits."

About Advanced Emissions Solutions, Inc.

Advanced Emissions Solutions, Inc. (Nasdaq:ADES) 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-Prove^TM 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 Emissions Solutions consolidates the results of CCS in its financial
statements.

BCSI, LLC ("BCSI") 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. BSCI 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 expectedtiming of
operations of RC facilities, revenues, tax credits, and related matters. 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; availability, cost of and demand for alternative tax credit
vehicles and other technologies; 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 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 do so.

CONTACT: Graham Mattison
         Vice President, Investor Relations
         (646) 319-1417
         graham.mattison@adaes.com

company logo
 
Press spacebar to pause and continue. Press esc to stop.