|Arch Coal Licenses ADA-ES Coal Enhancement Technology|
Agreement Provides Upfront Payment of $2 Million and Structure for Potential Future Royalties
Arch has been a significant shareholder of ADA since 2003 when the Company spun-out as a separate public entity. Arch currently produces more than 100 million tons of PRB coal per year.
Arch President and Chief Operating Officer John Eaves, who has served on the ADA Board of Directors since 2004, commented, “As part of our commitment to clean energy, we are pleased to provide this additional investment in ADA, a leader in developing clean coal technology. We believe helping finance advanced technologies developed by ADA will enhance the environmental performance of our coals.”
ADA has been successful at developing technologies that improve the performance of PRB coals, including flue gas conditioning (FGC) chemicals used to aid in the collection of ash from PRB coals. The Company also developed a cost-effective brominated activated carbon technology that provides a means of achieving 90% removal of mercury emissions from PRB coals, as well as 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. Since 2004, ADA has been working with Arch to explore certain unique characteristics of some types of coals produced by Arch that allow them to be burned with lower emissions. A recent technical breakthrough provides a potential means to obtain similar performance improvements from all of Arch’s PRB coals.
Mike Durham, ADA President and CEO, stated, “This new technology will be complementary to our other innovative technologies such as CyClean, FGC, and different activated carbons that provide us with the tools to help our power generating customers to meet the challenges of existing and pending emissions control regulations.”
About Arch Coal
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements included in this release include statements regarding the impact of ADA’s technologies on the performance of Arch’s coal and Arch’s ability to sell the enhanced coal to its customers, and timing of commencement of operations at ADA-CS’s first AC plant. These statements are based on current expectations, estimates, projections, beliefs and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to changes in laws and regulations, prices, economic conditions and market demand; technical and operational difficulties; impact of competition and litigation; availability of skilled personnel; and risks related to ADA-CS such as changes in the costs and timing of construction of the AC plant, failure to raise additional financing or satisfy conditions in existing agreements and actions of our joint venture partner. You are cautioned not to place undue reliance on our forward-looking statements. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.