Fuel Tech Awarded Air Pollution Control Orders Totaling $2.6 Million

Rhea-AI Summary

Fuel Tech (NASDAQ: FTEK) has secured air pollution control (APC) orders worth $2.6 million from existing customers in the US and Japan. The Japanese order includes an ULTRA® system for a natural gas-fired Combined Cycle utility plant, marking their fourth on-site unit following a 2017 contract. The system will utilize ULTRA-EX™ technology to enhance energy efficiency in the SCR process.

Engineering is scheduled for completion in Q2 2025, with equipment delivery in Q1 2027. Additionally, a domestic order for advanced engineering was received from a Northeast municipal waste unit customer for an Advanced Selective Non-Catalytic Reduction (ASNCR) system, with completion expected in Q2 2025.

These orders represent a portion of the $4-5 million in near-term contract wins expected by early Q2 2025. Fuel Tech's technologies have been installed on over 1,300 utility, industrial and municipal units worldwide.

Positive

• Secured new orders worth $2.6 million from existing customers
• Part of larger expected $4-5 million in near-term contract wins
• Repeat business from Japanese customer (4th unit order)
• Expanding presence in both US and international markets

Negative

• Long delivery timeline (Q1 2027) for Japanese order may delay revenue recognition
• Current orders represent only partial fulfillment of expected $4-5 million contract wins

Insights

Financial Analyst

The $2.6 million in air pollution control orders represents significant revenue generation for Fuel Tech, constituting approximately 8.8% of the company's $29.65 million market capitalization. These contracts form part of management's projected $4-5 million in near-term wins expected by early Q2 2025, indicating the company is on track with its sales pipeline development.

The order structure provides both near and long-term revenue visibility. The domestic engineering project concludes in Q2 2025, offering immediate contribution, while the Japanese ULTRA system order extends to Q1 2027 for equipment delivery, building future revenue stability. The Japanese order's nature as a fourth repeat purchase from the same customer since 2017 demonstrates strong technology adoption and customer satisfaction - critical factors for a small-cap environmental technology provider.

For a company of Fuel Tech's size, securing recurring business from established customers significantly reduces customer acquisition costs and stabilizes revenue forecasts. The geographic diversity of these orders (US and Japan) also highlights the company's ability to compete in international markets while maintaining its domestic footprint. CEO comments regarding additional pending APC contracts suggest potential for further positive financial catalysts in the immediate future, potentially sustaining business momentum through Q2 2025.

Environmental Technology Specialist

Fuel Tech's ULTRA technology addresses a fundamental safety challenge in emissions control by enabling on-site conversion of urea to ammonia, eliminating the substantial hazards associated with traditional ammonia transport and storage. The Japanese order specifically employs the advanced ULTRA-EX™ configuration, which improves energy efficiency by harvesting waste heat from combustion turbine exhaust for the urea decomposition process - an elegant engineering solution that reduces external energy requirements.

The domestic order for Advanced Selective Non-Catalytic Reduction (ASNCR) technology supports industrial operators facing increasingly stringent NOx control requirements. This phased approach, beginning with engineering services, often leads to full implementation contracts as regulatory compliance deadlines approach. Both orders demonstrate how Fuel Tech leverages its specialized expertise in emissions control to create tailored solutions for specific industrial and utility applications.

With installations on over 1,300 facilities worldwide, Fuel Tech has established significant market validation for its technologies. The Japanese customer's return for a fourth system indicates successful commercial operation of previous installations - the strongest possible endorsement in the industrial emissions control sector. As global environmental regulations continue tightening, particularly for nitrogen oxide emissions, Fuel Tech's specialized position in this niche appears well-aligned with enduring market requirements.

WARRENVILLE, Ill., March 24, 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 existing customers in the US and Japan. These orders have an aggregate value of approximately $2.6 million.  

An order from Japan was received for an ULTRA^® system that will be installed on a natural gas-fired Combined Cycle utility plant in the Pacific Rim being retrofitted with Selective Catalytic Reduction (SCR) technology. 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 nitrogen oxide (NOx), eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. This will be the fourth on-site unit and a follow-on order from a 2017 contract. The equipment will again use our ULTRA-EX™ approach, which utilizes high temperature exhaust gas from the combustion turbine in the ULTRA process. The extracted flue gas is used to thermally decompose the concentrated urea solution into ammonia in the ULTRA chamber. ULTRA-EX increases the energy efficiency of the overall process and lowers the external heat input required to generate the ammonia which is fed to the SCR. Engineering is expected to be completed in the second quarter of 2025, with equipment delivery scheduled sometime in the first quarter of 2027.

A domestic order was also received for advanced engineering from an existing municipal waste unit customer in the Northeast 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. Work is scheduled for completion in the second quarter of 2025.

Vincent J. Arnone, President and Chief Executive Officer, commented, “We are pleased to announce these contract awards to support the needs of a wide range of utility and industrial customers. These orders reflect a portion of the $4 to 5 million in near-term contract wins that we were expecting to close by early in the second quarter of this year. We are continuing to actively pursue additional APC contracts that are likely to be awarded early in the second quarter of 2025.”  

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	Devin Sullivan
	President and Chief Executive Officer	Managing Director
	(630) 845-4500	The Equity Group Inc.
		dsullivan@equityny.com

FAQ

What is the total value of Fuel Tech's (FTEK) recent APC orders in March 2025?

Fuel Tech secured APC orders totaling $2.6 million from customers in the US and Japan.

When will Fuel Tech (FTEK) complete the ULTRA system installation for the Japanese power plant?

Equipment delivery is scheduled for Q1 2027, with engineering completion expected in Q2 2025.

How many ULTRA system installations has Fuel Tech (FTEK) completed for this Japanese customer?

This will be the fourth on-site ULTRA unit for this customer, following an initial contract from 2017.

What is the expected value of Fuel Tech's (FTEK) near-term contract wins by Q2 2025?

Fuel Tech expects $4-5 million in near-term contract wins by early Q2 2025.