ADA-ES, Inc. (NASDAQ: ADES) (ADA) has received awards from three utilities to supply ten Activated Carbon Injection (ACI) systems. Work on the contracts, which collectively are valued at more than $7 million, will begin immediately with deliveries in the fourth quarter of 2013 and in 2014.
The contracts are 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 Dry Sorbent Injection (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. With these new contracts ADA has received awards for DSI and ACI systems with a potential total value of over $50 million. In addition to these awards, ADA has active bids totaling 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 be awarded these projects by our customers and proud to provide them with solutions to ensure compliance with the new federal rules. The market for equipment to meet the federal MATS rules continues to accelerate and we expect that additional contracts for DSI and ACI systems will be awarded soon.”