ADA-ES, Inc. (NASDAQ: ADES)(ADA) has recently received awards and letters of intent to award for approximately $30 million in Activated Carbon Injection (ACI) and Dry Sorbent Injection (DSI) systems from multiple utilities. Work has begun on some of the projects and deliveries of the systems are scheduled to begin in 2014.
These awards 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 the MATS and other emission control regulations could generate a total market in excess of $1 billion for ACI and DSI systems. Since the MATS market commenced in 2011, ADA has won or received letters of intent to award contracts currently valued at approximately $75 million for DSI and ACI systems. We are currently working on bids or discussing potential projects for ACI and DSI systems in excess of $180 million.
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 is well underway and evolving as we expected. ADA has taken a number of steps to prepare for this market, including the August 2012 acquisition of the assets of Bulk Conveyor Specialist, Inc., a leading provider of DSI systems. In addition, we have grown our engineering capabilities and have put in place arrangements with various suppliers and component manufacturers to meet the growing market demand. With the increase in cash flows from our Refined Coal business, including the recent $10 million payment from the sale of a new facility, we have the resources to execute effectively on this rapidly growing business and help our customers meet the MATS timelines."