Fuel Tech Awarded Air Pollution Control Orders Totaling $2.3 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 China, the Middle East and the US. These awards have an aggregate value of approximately $2.3 million.

In China, Fuel Tech received an award for a NOxOUT® Selective Non-Catalytic Reduction (SNCR) system for a coal-fired utility boiler. Our SNCR technology is proving to be a viable solution as combustion unit owners look to comply with more stringent NOx control requirements mandated by China. Equipment deliveries are expected to occur during the third quarter of this year.

The Company received additional orders in China for multiple ULTRA™ systems that will be installed on utility units firing coal, which are 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 where Selective Catalytic Reduction (SCR) is used to reduce NOx, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Deliveries for these projects commenced in the second quarter of 2016, and are expected to continue in the third quarter of 2016 and the second quarter 2017.

The order in the Middle East is for an SNCR system using NOxOUT technology on a cement kiln, and is evidence of the continued viability of our technologies in markets outside the US. The contract is with ISGEC Heavy Engineering Ltd. (ISGEC), who will resell a Fuel Tech SNCR system as part of their larger scope of equipment supply to a third party. In June 2016, ISGEC, one of India’s leading engineering companies, signed an exclusive agreement with Fuel Tech to license Fuel Tech’s SNCR technology for use in SNCR system sales in the emerging air pollution control market in India. In the US, a change order was received for a project utilizing conventional SCR systems on an industrial gas-fired boiler. Final deliveries for these projects will be second quarter 2017.

Vincent J. Arnone, President and Chief Executive Officer, commented, “We are excited to announce this SNCR order with ISGEC and we believe that they are an ideal partner to introduce Fuel Tech’s proven emissions control technologies to India and other regional countries that are promising new markets for our solutions. Collectively, these orders continue to demonstrate our capabilities to provide cost-effective technology solutions on a global basis.”

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 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 fly ash particles. 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 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.

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