Fuel Tech Awarded Air Pollution Control Orders Totaling $2.4M;Includes NOxOUT® Project and ULTRA™ Systems in China

WARRENVILLE, Ill.--(BUSINESS WIRE)--Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advanced engineering solutions for the optimization of combustion systems and emissions control in utility and industrial applications, today announced receipt of air pollution control (APC) orders totaling $2.4 million.

The largest of these orders was the award of a NOxOUT^® Selective Non-Catalytic Reduction (SNCR) project at an industrial plant in Guangzhou City, the capital of Guangdong Province. Equipment deliveries for this project, which is designed to satisfy nitrogen oxide (NOx) emission requirements in anticipation of the upcoming Asian Games, are scheduled for the third quarter of 2010.

The Company also received an award of two ULTRA™ systems for two small coal-fired units at a district heating plant in Beijing. District heating plants generate and distribute heat to satisfy residential and commercial heating requirements such as space heating and water heating. The impact on the environment of these smaller, but numerous, district heating units and cogeneration (heat and power) boilers remains a source of continued concern in China.

The ULTRA systems will provide ammonia reagent in support of coal-fired electric generating units outfitted with Selective Catalytic Reduction (SCR) systems for nitrogen oxide (NOx) control. Equipment deliveries are scheduled for the fourth quarter of 2010.

Fuel Tech’s ULTRA process provides for the safe and cost-effective on-site conversion of urea to ammonia for use as a reagent in the selective catalytic reduction of NOx, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia.

Additional orders include the following: modeling and equipment supply for a domestic NOxOUT^® SNCR project; modeling and a demonstration for a domestic HERT™ High Energy Reagent Technology™ project; additional equipment for a previously announced Low NOx Burner and Over-Fire Air system for a coal-fired unit in the Midwest; a new atomizer burner testing for a utility in the Caribbean; and several domestic mapping and modeling orders.

Douglas G. Bailey, Chairman, President and Chief Executive Officer, commented, “These orders reflect diversity both in geography and in our APC project mix. The NOxOUT SNCR order from China represents our fourth NOx control order and eighth unit award in Guangzhou City. The Guangdong Province has afforded Fuel Tech NOx control opportunities since new environmental regulations were issued in preparation for the Asian Games that are scheduled to commence in November 2010, calling for the installation of systems to reduce NOx by as much as 80% by September 30, 2010.”

Mr. Bailey concluded, "We are also pleased to receive our first ULTRA project on district heating units in China. Although long recognized as a key source of air pollution in China, it is only recently that local regulations in large cities have mandated NOx control on these small coal-fired boilers. China remains a very active market for Fuel Tech’s ULTRA technology and we are pleased to be penetrating this new market."

About Fuel Tech

Fuel Tech is a leading technology company engaged in the worldwide development, commercialization and application of state-of-the-art proprietary technologies for air pollution control, process optimization, and advanced engineering services. These technologies enable customers to produce both energy and processed materials in a cost-effective and environmentally sustainable manner.

The Company’s nitrogen oxide (NOx) reduction technologies include advanced combustion modification techniques - such as Low NOx Burners and Over-Fire Air systems - and post-combustion NOx control approaches, including NOxOUT^® and HERT™ SNCR systems as well as systems that incorporate ASCR™ (Advanced Selective Catalytic Reduction), CASCADE™, ULTRA™ and NOxOUT-SCR^® processes. These technologies have established Fuel Tech as a leader in NOx reduction, with installations on over 580 units worldwide, where coal, fuel oil, natural gas, municipal waste, biomass, and other fuels are utilized.

The Company’s FUEL CHEM^® technology revolves around the unique application of chemicals to improve the efficiency, reliability, fuel flexibility and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and operational issues associated with sulfur trioxide, ammonium bisulfate, particulate matter (PM_2.5), carbon dioxide and NOx. This technology, in the form of a customizable FUEL CHEM program, is installed on over 90 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste.

Fuel Tech also provides a range of combustion optimization services, including airflow testing, coal flow testing and boiler tuning, as well as services to help optimize selective catalytic reduction system performance, including catalyst management services and ammonia injection grid tuning. In addition, flow corrective devices and physical and computational modeling services are available to optimize flue gas distribution and mixing in both power plant and industrial applications.

Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. These capabilities, coupled with the Company’s innovative technologies and multi-disciplined team approach, enable Fuel Tech to provide practical solutions to some of our customers’ most challenging problems. For more information, visit Fuel Tech’s web site at www.ftek.com.

This press release may contain statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Fuel Tech files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.