Fuel Tech, Inc. (NASDAQ:FTEK), a technology company providing advanced engineering solutions for the optimization of combustion systems, emissions control and water treatment in utility and industrial applications, today announced the receipt of multiple air pollution control (APC) contracts from new and existing customers in the US. These awards support natural gas and coal-fired projects serving various end markets, and have an aggregate value of approximately $2.7 million.
An order was received in the US for two ULTRA® systems to be installed on natural gas-fired package boiler units at a medical facility on the West Coast. 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 are expected to be completed in the second quarter of 2023.
Three additional orders in the US were received for ULTRA systems. The first contract was for an ULTRA system deployed on a natural gas-fired turbine at a university on the West Coast. Delivery is expected in the first quarter of 2023. The second ULTRA order was for an industrial unit firing natural gas at a chemical production facility in the Southeast. This system is expected to be delivered in the second quarter of 2023. The third order was for an ULTRA system on a coal-fired unit in the Western US; this is the second ULTRA system at that site, with delivery expected in the third quarter of 2023.
The final contract was received from an existing customer for engineering services in advance of a potential Selective Non-Catalytic Reduction (SNCR) system for a coal-fired unit in the Midwest. Fuel Tech’s SNCR technology is a proven solution for utility and industrial combustion unit owners looking to comply with more stringent NOx control requirements. The potential SNCR system is being driven by the proposed EPA Good Neighbor Rule, which is expected to finalize in the first quarter of 2023. Engineering work is expected to be completed by the fourth quarter of 2022.
Vincent J. Arnone, President and Chief Executive Officer, commented, “We are pleased to announce these contract awards which represent continued growth of Fuel Tech’s ULTRA technology solution that can address a wide range of end markets. We are excited to see activity from both new customers and existing end users. Additionally, the future NOx reduction requirements generated by the EPA proposal to create a next phase of the Cross State Air Pollution Rule to meet the Good Neighbor provision of the Clean Air Act could create a number of opportunities for both SNCR and SCR technology over the next several years. We are continuing to support potential customers as they assess their need for additional NOx reduction.”
