Fuel Tech Awarded Air Pollution Control Orders Totaling $1.6 Million

Rhea-AI Summary

Fuel Tech (NASDAQ: FTEK), a technology company specializing in emissions control and water treatment, announced the receipt of air pollution control (APC) orders totaling approximately $1.6 million from new and existing US customers. These orders include:

• A contract for an ULTRA® system installation on a natural gas turbine at a Midwest university, expected to be completed in Q2 2026.
• An advanced engineering order for an ASNCR system from a municipal waste unit customer.
• A site services order from a Northeast medical facility to optimize its existing ULTRA system.
• Several orders for parts for recent SCR and ULTRA projects, scheduled for completion in Q1 2025.

CEO Vincent J. Arnone expressed optimism about the company's growth, citing a sales pipeline with potential APC contracts valued between $4 million and $5 million, expected to be awarded by early Q2 2025. Additionally, several municipal waste customers are likely to adopt ASNCR technology to meet lower emission requirements.

Fuel Tech develops proprietary technologies for air pollution control, process optimization, water treatment, and advanced engineering services, with solutions installed on over 1,300 units worldwide.

Positive

• Fuel Tech received $1.6 million in APC orders from new and existing US customers.
• The company expects to close new awards valued between $4 million and $5 million by early Q2 2025.
• Fuel Tech's ULTRA system order for a natural gas turbine at a Midwest university is expected to be completed in Q2 2026.

Negative

• None.

Insights

Environmental Technology Analyst

The $1.6 million in new APC orders represents more than 5.6% of Fuel Tech's current market capitalization, while the potential $4-5 million pipeline could add another 14-18% in contract value. These figures are particularly significant for a small-cap environmental technology company, indicating strong market penetration and customer confidence.

The ULTRA system order for a university installation highlights a strategic advantage in the education sector, where safety considerations are paramount. The technology's ability to eliminate hazardous ammonia handling provides a compelling value proposition, particularly in densely populated campus environments. This differentiator could drive further adoption in sensitive locations like hospitals, schools, and urban facilities.

The advanced engineering order for municipal waste units signals an important market development. Stricter NOx control requirements are forcing waste combustion operators to upgrade their emissions control systems. This regulatory-driven demand creates a predictable revenue stream, as these facilities must comply with environmental standards regardless of economic conditions. The company's ASNCR technology is well-positioned to capture this market, with multiple customers expected to adopt the solution in the coming months.

Most notably, the mix of new and existing customers in these orders demonstrates both market expansion and customer retention. The service contract for the medical facility's ULTRA system optimization represents high-margin, recurring revenue potential - a important factor for long-term business stability. This business model of initial equipment sales followed by ongoing optimization and maintenance services creates valuable customer relationships and predictable revenue streams.

Expects to Close New Awards Valued at $4 Million to $5 Million

WARRENVILLE, Ill., Feb. 18, 2025 (GLOBE NEWSWIRE) -- Fuel Tech, Inc. (NASDAQ: FTEK), a technology company using advanced engineering processes to provide emissions control systems and water treatment technologies in utility and industrial applications, today announced the receipt of air pollution control (APC) orders from new and existing customers in the US. These orders have an aggregate value of approximately $1.6 million.  

A contract was received from an existing customer in the US for an ULTRA^® system to be installed on a natural gas turbine with a heat recovery steam generator at a university in the Midwest. Fuel Tech’s ULTRA process provides for the safe and cost-effective on-site conversion of urea to ammonia for use as a reagent where SCR is used to reduce NO_x, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Delivery is expected to be completed in the second quarter of 2026.

An order was also received for advanced engineering from an existing municipal waste unit customer as a first step towards an Advanced Selective Non-Catalytic Reduction (ASNCR) system, which is a proven solution for industrial combustion unit owners looking to comply with more stringent NO_x control requirements. A second order was received for site services from a medical facility in the Northeast looking to optimize the operation of its existing ULTRA system to feed the SCR reactor. In addition, several orders were received for parts for recent SCR and ULTRA projects. Work for these contracts is scheduled for completion in the first quarter of 2025.

Vincent J. Arnone, President and Chief Executive Officer, commented, “We are pleased to announce these contract awards which represent continued growth to support the needs of a wide range of industrial customers. Based on our current sales pipeline, we are in the late stages of actively pursuing multiple APC contracts that are scheduled to be awarded between now and early in the second quarter of 2025 covering the majority of our APC technology suite and having a total contract value expected to range between $4 million and $5 million.”  

“Additionally, with specific reference to municipal waste combustion units, we have a number of customers being driven to meet lower emission requirements, and several of them are likely to move forward with ASNCR technology over the next few months.”

About Fuel Tech

Fuel Tech develops and commercializes state-of-the-art proprietary technologies for air pollution control, process optimization, water treatment, and advanced engineering services. These technologies enable customers to operate in a cost-effective and environmentally sustainable manner. Fuel Tech is a leader in nitrogen oxide (NO_x) reduction and particulate control technologies and its solutions have been installed on over 1,300 utility, industrial and municipal units worldwide. The Company’s FUEL CHEM^® technology improves the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion and opacity. Water treatment technologies include DGI^® Dissolved Gas Infusion Systems which utilize a patented saturator and a patent-pending channel injector to deliver supersaturated oxygen solutions and other gas-water combinations to target process applications or environmental issues. This infusion process has a variety of applications in the water and wastewater industries, including remediation, aeration, biological treatment and wastewater odor management. Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. For more information, visit Fuel Tech’s web site at www.ftek.com.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect Fuel Tech’s current expectations regarding future growth, results of operations, cash flows, performance and business prospects, and opportunities, as well as assumptions made by, and information currently available to, our management. Fuel Tech has tried to identify forward-looking statements by using words such as “anticipate,” “believe,” “plan,” “expect,” “estimate,” “intend,” “will,” and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on information currently available to Fuel Tech and are subject to various risks, uncertainties, and other factors, including, but not limited to, contracts being awarded to competitors offering different or lower-priced technologies, projects being suspended, delayed or cancelled and other risks discussed in Fuel Tech’s Annual Report on Form 10-K in Item 1A under the caption “Risk Factors,” and subsequent filings under the Securities Exchange Act of 1934, as amended, which could cause Fuel Tech’s actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Fuel Tech undertakes no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances or for any other reason. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those detailed in Fuel Tech’s filings with the Securities and Exchange Commission.

CONTACT:
Vince Arnone
President and Chief Executive Officer
(630) 845-4500

Devin Sullivan
Managing Director
The Equity Group Inc.
dsullivan@equityny.com

FAQ

What is the value of the recent APC orders received by Fuel Tech (FTEK)?

Fuel Tech received air pollution control orders totaling approximately $1.6 million.

What are the expected completion dates for Fuel Tech's (FTEK) recent contracts?

The ULTRA system installation at a Midwest university is expected to be completed in Q2 2026, while other parts orders are scheduled for completion in Q1 2025.

What potential new contracts is Fuel Tech (FTEK) pursuing?

Fuel Tech is actively pursuing APC contracts valued between $4 million and $5 million, expected to be awarded by early Q2 2025.

What is Fuel Tech's (FTEK) ULTRA® system?

Fuel Tech's ULTRA® system provides safe, cost-effective on-site conversion of urea to ammonia for use as a reagent in SCR to reduce NOx emissions.

What technologies does Fuel Tech (FTEK) specialize in?

Fuel Tech specializes in air pollution control, process optimization, water treatment, and advanced engineering services.