ADA-ES, Inc. (NASDAQ: ADES) (ADA)has been awarded a contract from a large air pollution equipment company to supply Activated Carbon Injection (ACI) and Dry Sorbent Injection (DSI) systems for installation at two coal-fired power plants. Work on the contract, which is valued at more than $8.5 million, will begin immediately with deliveries scheduled for the fourth quarter of 2013 and first quarter of next year.
The contract is the result of the recent EPA Mercury and Air Toxics Standard (MATS), which requires coal-fired power plants to reduce emissions of mercury and sulfuric, hydrochloric and other acid gases by April 2015. ADA believes that MATS and other emission control regulations could generate a total market in excess of $1 billion for ACI and DSI systems, and the Company expects to maintain a combined market share of about 35%. The enactment of MATS has recently created a significant increase in ACI and DSI procurement activities, and ADA has been active in its response to this market. In 2012, ADA announced awards for DSI and ACI systems with a potential total value of $35 million. In addition to these awards, ADA has active bids on over $125 million for ACI systems and over $160 million for DSI systems.
Dr. Michael Durham, President and CEO of ADA, stated, “We are very pleased to announce this significant award and proud to provide our customer with a comprehensive solution using both ACI and DSI systems to ensure compliance with the new federal rules. With our acquisition of BCSI last year, we believe that we have a competitive advantage as we can provide both injection systems, which must work together in order for the customer to achieve compliance. We expect that additional contracts for DSI and ACI systems will be awarded soon.”