Arch invests in technologies to improve coal use and cut emissions

first_imgArch Coal plans to invest $3.0 million in ADA to fund near-term growth opportunities. ADA has been successful at developing technologies that improve the performance of coals from Wyoming’s Powder River Basin (PRB). In addition to flue gas conditioning chemicals used to aid in the collection of ash from PRB coals, it also developed a cost-effective brominated activated carbon technology that provides a means of achieving 90% removal of mercury emissions from PRB coals and CyClean technology, a proprietary coal additive that improves combustion of PRB coals in cyclone boilers resulting in enhanced efficiency and reduced emissions of mercury and nitrogen oxides. For the past several years, ADA has worked with Arch to explore certain unique characteristics of some of its coals that allow them to be burned with lower mercury emissions.The first step of the investment was completed on March 23 with the purchase of 143,885 shares of ADA for $1.0 million. The remaining $2.0 million is consideration for an exclusive license to use ADA’s technology to provide environmental benefits for coals mined by Arch that are used to produce electricity. The license is currently being negotiated to define the royalty structure and is expected to be finalized in the next month. Arch has been a significant shareholder of ADA since 2003 when the Company spun-out as a separate public entity.Mike Durham, ADA President and CEO, stated, “This investment will continue our long-standing relationship with Arch and allow the company to fund opportunities that have the potential for significant near-term increases in revenues and earnings such as CyClean. As Congress is considering a year extension to the Section 45 tax credits, we want to be in a position to respond quickly to sell and install additional CyClean systems to produce refined coal.”ADA-ES is a leader in clean coal technology and the associated specialty chemicals. It develops and implements proprietary environmental technology and specialty chemicals that enable coal-fuelled power plants to enhance existing air pollution control equipment, maximise capacity and improve operating efficiencies. ADA-ES supplies activated carbon (AC) injection systems, mercury measurement instrumentation, and related services. Through Clean Coal Solutions, the company provides its patented refined coal technology, CyClean, to utilities to enhance combustion of and reduce emissions from PRB coals in cyclone boilers, which qualifies for Section 45 tax credits. In addition, to meet the needs of the power industry for mercury control, a joint venture of the company, ADA Carbon Solutions, is developing state-of-the-art facilities to produce AC with the first plant projected to come on-line in 2010. The company is also developing technologies for power plants to address issues related to the emissions of carbon dioxide.last_img read more