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New refined coal contract signed for coal-fired power plant

World Coal,

Clean Coal Solutions LLC, a joint venture between ADA-ES Inc., an affiliate of NexGen Resources Corp. and an affiliate of Goldman Sachs, has finalised the contract for a fifth refined coal (RC) facility.

The RC facility, which uses ADA’s M-45TM technology, is located at a power plant that has historically burned about 3.5 million tpa of coal. According to a company press release, CCS has operated this facility for the past nine months during negotiation of definitive agreements and the restructuring of debt related to the power plant. During this period, the RC facility generated tax credits for the JV’s own use at a cost of approximately US$ 1 million per month to CCS.

Dr Michael Durham, president and CEO of ADA said: “We are very excited about completing this transaction with this new RC investor and look forward to a productive long-term relationship with them. As well, the transaction is generating significant cash flows for ADA and enabling us to provide a power generating customer with economic benefits resulting from the use of the technology, including decreased operating costs and decreased emissions of NOx and mercury.”

RC technology is a pre-combustion coal additive system designed to improve boiler operations and reduce emissions. ADA has developed two systems: M45 for use in circulated fluidized bed combustors; and CyClean for use in PRB and lignite-fired cyclone boilers. According to the ADA-ES website, the technology reduces NOx emissions by 20% and mercury emissions by 40%. Other benefits include:

  • Reduced or eliminated mercury control costs.
  • Improved combustion with potential ammonia cost savings.
  • US$ 1/ short t refined coal revenue.
  • No capital expenditures or operating costs.
  • Simple storage and conveying system with small footprint.
  • Increased boiler turn down range and boiler fuel flexibility.
  • ADA provides full-scale testing, equipment design and installation, legal support, marketing, and operational support
  • Potential tax credit qualification for IRS Section 45 RC at $6.47 per ton of RC for ten years.

Written by Jonathan Rowland.

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