HIGHLANDS RANCH, Colo.--(BUSINESS WIRE)-- ADA-ES, Inc. (NASDAQ: ADES) (“ADA”) today announced that it has acquired the assets of Bulk Conveyor Specialist Inc. and Bulk Conveyor Services, Inc. (collectively, BCSI) for an initial payment of $2 million with an additional $3 million to be paid over the next five years. As previously announced, ADA and BCSI entered into a definitive asset purchase agreement in July 2012. The assets are now held in a wholly-owned subsidiary of ADA called BCSI, LLC.
Based in McKeesport, PA, BCSI is a leading U.S. supplier of Dry Sorbent Injection (DSI) and other material handling equipment to the coal-fired power generation industry, as well as testing and related services. BCSI has supplied 22 commercial DSI systems to date, representing approximately 40% of DSI units sold to utility customers for controlling acid gases.
Dr. Michael Durham, President and CEO of ADA, commented, “This acquisition should increase our market leading position in commercial acid gas control, and allow us to vertically-integrate our Emissions Control business operations, including expanding our capacity to supply Activated Carbon Injection (ACI) systems.”
He continued, “The U.S. Environmental Protection Agency’s Mercury and Air Toxics Standard (“MATS”) mandates the control of acid gases at coal-fired power plants. As a result of this law, we believe that sales of DSI and ACI systems will generate over $300 million in revenues for ADA over the next three years. The new rule has created a significant increase in procurement activities such that ADA has active bids on over $160 million for ACI systems, and BCSI has active bids on over $100 million of DSI systems. The total potential market could actually increase as the result of the recent decision by the U.S. Court of Appeals for the District of Columbia to vacate the EPA’s Cross-State Air Pollution Rule (CSAPR), because CSAPR was driving many announced plant retirements. With the requirement to reduce sulfur dioxide and nitrogen oxide emissions delayed for several years, certain plants could have extended lives and will need to control acid gases and mercury by 2015 in order to comply with MATS.”
Dr. Durham concluded, “We look forward to working with Bill Caputo, who built BCSI over the past 25 years, and General Manager Aaron Prince, as we endeavor to become a market leader in both the ACI and DSI industry.”
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, CO2 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 from burning Powder River Basin (“PRB”) coals in cyclone boilers and our patent pending M-45™ technology for other types of coal and boilers. Both technologies reduce emissions of NOx and mercury in coal fired boilers.
- We supply Activated Carbon Injection (“ACI”) and Dry Sorbent Injection (“DSI”) systems, mercury measurement instrumentation, and related services.
- 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 CO2 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 the impact of the BCSI acquisition on ADA, amount and timing of revenues from DSI and ACI systems; impact of MATS and of the overturning of CSAPR, size of the market for DSI and ACI systems 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 and regulations, government funding, prices, economic conditions and market demand; legal challenges to laws and regulations; our inability to ramp up operations to effectively address expected growth in our target markets; difficulties in integration of BCSI operations; impact of competition; availability, cost of and demand for alternative energy sources 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 do so.