Fuel Tech Awarded Air Pollution Control Orders Totaling $4.7 Million

WARRENVILLE, Ill.--()--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 the receipt of multiple air pollution control (APC) contracts from customers in the US, Europe and China. These awards have an aggregate value of approximately $4.7 million.

The first US order is for engineering and long-lead equipment for an Electrostatic Precipitator (ESP) retrofit on a Midwestern coal-fired unit. Preliminary engineering is scheduled to complete in the third quarter of 2015. The project is designed to improve the performance of the plant to meet the Environmental Protection Agency's upcoming Mercury and Air Toxics Standards (MATS) for particulate emissions. The plant will utilize dry sorbent injection and activated carbon injection to control acid gas and mercury emissions. The ESP upgrades are scheduled to complete in the second quarter of 2016 and, when implemented, will capture the fly ash and sorbents.

Two additional US contracts were received for ESP equipment and optimization services for utility boilers in the Midwest, with deliveries scheduled for the third quarter of 2015. In addition, a US order for upgrades to an existing Selective Catalytic Reduction (SCR) system was received for an industrial gas-fired boiler. These upgrades are designed to optimize performance and reliability for SCR performance, with delivery scheduled for the third quarter of 2015.

In the UK, a contract was received for Fuel Tech’s NOxOUT® Selective Non-Catalytic Reduction (SNCR) technology for a unit burning biomass. Delivery for the system is scheduled for the fourth quarter of 2015. This is the second recent order for SNCR technology in the UK, and follows the order announced in May for Fuel Tech’s Advanced NOxOUT® Selective Non-Catalytic Reduction (ASNCR) technology at the Drax Power Station for four boilers burning both coal and biomass.

Fuel Tech is working with Doosan Babcock to provide an emissions control solution to meet the requirements of the European Union’s Industrial Emissions Directive. Through the utilization of advanced control and injection systems in conjunction with more accurate boiler data, ASNCR optimizes urea injection to improve NOx reduction performance and minimize reagent costs.

In China, five orders were received for multiple ULTRA™ systems that will be installed on utility coal-fired units being retrofitted with NOx reduction technology. 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 SCR process for NOx control, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Equipment deliveries are expected to occur in the third quarter of 2015.

Vincent J. Arnone, President and Chief Executive Officer, commented, “We are excited about the ESP orders as utility plant operators continue to meet MATS emission requirements. The recent Supreme Court ruling raised questions about MATS compliance dates, and these contracts support predictions by many industry experts that compliance dates for 2016 will remain on schedule. The contracts in the UK demonstrate recent growth in the European market and we are pleased to work with Doosan Babcock as we see potential for other projects within the European Union.”

Mr. Arnone continued, “Our ULTRA technology simplifies on-site ammonia generation for SCR applications of all types. We are pleased to see that our air pollution control product line continues to play a role in assisting China in its endeavor to reduce harmful air pollutants.”

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 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 and post-combustion NOx control approaches, including NOxOUT®, HERT™, and Advanced SNCR systems, ASCR™ Advanced Selective Catalytic Reduction systems, and I-NOx™ Integrated NOx Reduction Systems, which utilize various combinations of these systems, along with the ULTRA™ process for safe ammonia generation. These technologies have established Fuel Tech as a leader in NOx reduction, with installations on over 900 units worldwide.

Fuel Tech’s technologies for particulate control include Electrostatic Precipitator (ESP) products and services including complete turnkey capability for ESP retrofits, with experience on units up to 700 MW. Flue gas conditioning (FGC) systems include treatment using sulfur trioxide (SO3) and ammonia (NH3) based conditioning to improve the performance of ESPs by modifying the properties of the fly ash particle. Fuel Tech’s particulate control technologies have been installed on more than 125 units worldwide.

The Company’s FUEL CHEM® technology revolves around the unique application of chemicals to improve the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and improving boiler operations. The Company has experience with this technology, in the form of a customizable FUEL CHEM program, on over 110 units.

Fuel Tech also provides a range of services, including boiler tuning and selective catalytic reduction (SCR) optimization services. In addition, flow corrective devices and physical and computational modeling services are available to optimize flue gas distribution and mixing in both utility 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 innovative technologies and a multi-disciplined team approach, enable Fuel Tech to provide practical solutions to many 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.

Contacts

Fuel Tech, Inc.
David S. Collins, 630-845-4500
Chief Financial Officer
or
The Equity Group Inc.
Devin Sullivan, 212-836-9608
Senior Vice President

Contacts

Fuel Tech, Inc.
David S. Collins, 630-845-4500
Chief Financial Officer
or
The Equity Group Inc.
Devin Sullivan, 212-836-9608
Senior Vice President