Advanced Emissions Solutions Announces Additional Investor in a Refined Coal Facility

Rhea-AI Summary

Advanced Emissions Solutions (NASDAQ: ADES) announced the sale of a 49.9% interest in a Refined Coal (RC) project by Tinuum Group, a joint venture including ADA-ES, NexGen Resources, and Goldman Sachs. This marks a significant development since Tinuum Group has held this interest since 2017. The company retains a minimal 0.1% interest, unaffected by the transaction. The interim CEO highlights the new investment as a positive step towards enhancing cash flow and reducing operational costs while aiming to secure more tax equity investors for expanded lower emission coal production.

Positive

• Sale of 49.9% interest in the RC project introduces a new investor, enhancing cash flow.
• The transaction reduces operating costs for Tinuum Group and supports its business model.
• Continued focus on securing additional tax equity investors to increase production of lower-emission coal.

Negative

• None.

GREENWOOD VILLAGE, Colo., July 02, 2020 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (NASDAQ: ADES) (the "Company" or "ADES") today announced that Tinuum Group, LLC ("Tinuum Group"), a joint venture among the Company's subsidiary ADA-ES, Inc., an affiliate of NexGen Resources Corporation, and an affiliate of The Goldman Sachs Group, Inc., has sold its 49.9% interest in a Refined Coal ("RC") project to a new third party investor. Tinuum had retained the 49.9% interest in the RC project since the project's commencement in 2017. The Company's 0.1% ownership interest in the project will not be impacted by this transaction. The RC facility is located at a coal-burning power plant that has historically burned in excess of 2.5 million tons of coal per year and is royalty bearing to ADES.

Greg Marken, Interim CEO of ADES, commented, "We are excited to announce an additional investor in this RC project. As we continue to navigate uncertain times, this closing reflects the strength in Tinuum's offerings and business model. This additional investor brings net cash flow and avoidance of operating costs at Tinuum. Tinuum, with support from ADES and Tinuum’s other owners, is diligently focused on securing additional tax equity investors and increasing production of lower emission coal to power our country."

About Advanced Emissions Solutions, Inc.
Advanced Emissions Solutions, Inc. serves as the holding entity for a family of companies that provide emissions solutions to customers in the power generation and other industries.

ADA brings together ADA Carbon Solutions, LLC, a leading provider of powder activated carbon ("PAC") and ADA-ES, Inc., the providers of ADA® M-Prove™ Technology. We provide products and services to control mercury and other contaminants at coal-fired power generators and other industrial companies. Our broad suite of complementary products control contaminants and help our customers meet their compliance objectives consistently and reliably.

CarbPure Technologies LLC, (“CarbPure”), formed in 2015 provides high-quality PAC and granular activated carbon ideally suited for treatment of potable water and wastewater. Our affiliate company, ADA Carbon Solutions, LLC manufactures the products for CarbPure.

Tinuum Group, LLC (“Tinuum Group”) is a 42.5% owned joint venture by ADA that provides patented Refined Coal (“RC”) technologies to enhance combustion of and reduce emissions of NOx and mercury from coal-fired power plants.

Source: Advanced Emissions Solutions, Inc.

Investor Contact:

Alpha IR Group
Ryan Coleman or Chris Hodges
312-445-2870
ADES@alpha-ir.com

FAQ

What does the recent press release from Advanced Emissions Solutions (ADES) announce?

The press release announces that Tinuum Group, a joint venture involving ADES, has sold its 49.9% interest in a Refined Coal project to a new investor.

How will the sale of the 49.9% interest in the RC project affect ADES?

The sale introduces net cash flow and reduces operating costs for Tinuum Group, while ADES retains a 0.1% ownership interest that remains unaffected.

What is the significance of the new investor in the Tinuum Group project?

The new investor is expected to enhance cash flow and help Tinuum Group secure more tax equity investors to support lower-emission coal production.

When did Tinuum Group first acquire the 49.9% interest in the Refined Coal project?

Tinuum Group has held the 49.9% interest in the Refined Coal project since its commencement in 2017.