Fuel Tech Awarded Air Pollution Control Orders Totaling $5.0 Million

January 11, 2016 | By Business Wire News

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 $5.0 million.

In the UK, a contract for Fuel Tech’s Advanced NO_xOUT® Selective Non-Catalytic Reduction (ASNCR) technology was received for a large coal-fired unit. This follows the order received last year for multiple units for our new ASNCR technology at this same plant location. The ASNCR system utilizes proprietary state-of-the-art injectors and injection controls in combination with advanced temperature measurement techniques to provide nitrogen oxide (NO_x) reduction efficiency well beyond conventional SNCR in difficult furnace environments. In addition to the order for the new unit, change orders were received on the original contract. Equipment delivery for the new system is expected to occur in the first quarter of 2016.

The first US order is for an Electrostatic Precipitator (ESP) upgrade to reduce particulate emissions from a coal-fired industrial boiler in the Midwest. The scope includes the supply of internal components, including upgraded electrodes for the ESP, with delivery scheduled for the first quarter of 2016. In addition, an initial design engineering contract was received for conventional Selective Catalytic Reduction (SCR) systems on three industrial gas-fired boilers. The planned scope for these potential systems includes the SCR reactor, flow mixing devices, and ammonia injection grid and aqueous ammonia feed system, all of which are key to optimal SCR performance. Engineering will be completed in the first quarter of 2016 to support a potential equipment contract for delivery in the first quarter of 2017.

An additional US contract was received from an industrial customer for combustion system upgrades to add natural gas firing capability to an existing coal-fired unit. The project scope includes Low NO_x Burners (LNBs), and Over-Fire Air (OFA) system and control upgrades to enable dual fuel flexibility. Equipment deliveries are scheduled for the second quarter of 2016.

In China, two orders were received for multiple ULTRA™ systems that will be installed on utility coal-fired units being retrofitted with NO_x 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 selective catalytic reduction of NO_x, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Equipment deliveries are expected to occur in the first quarter of 2016.

Vincent J. Arnone, President and Chief Executive Officer, commented, “These orders reflect the breadth of Fuel Tech’s cost-effective technology solutions portfolio on a global basis. Our ULTRA technology simplifies on-site ammonia generation for SCR applications of all types. We are excited about our ASNCR technology, where a variety of market segments could potentially benefit from this next generation of our SNCR technology. ASNCR could also be applied to our existing large installed base of SNCR customers through system upgrades to provide additional NO_x reduction or lower reagent operating costs.”

Mr. Arnone continued, “ In the US, Fuel-Tech’s ESP control solutions, available as the result of our April 2014 acquisition of PECO-FGC, allow plant operators to meet the Boiler Maximum Achievable Control Technology (MACT) regulations for particulate, while opportunities for our SCR technology continue to grow as the use of natural gas is expanding for power generation and industrial applications.”

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 (NO_x) reduction technologies include advanced combustion modification techniques and post-combustion NO_x control approaches, including NO_xOUT^®, HERT™, and Advanced SNCR systems, ASCR™ Advanced Selective Catalytic Reduction systems, and I-NO_x™ Integrated NO_x 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 NO_x 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 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.