23 March 2010 — Arch Coal Inc. will invest $3.0 million in ADA-ES to fund near-term growth opportunities for the company, whose technology addresses coal’s environmental characteristics. The first step of the investment was completed on March 23rd with the purchase of 143,885 shares of ADA for $1.0 million. The remaining $2.0 million is consideration for an exclusive license to use ADA’s technology to provide environmental benefits for coals mined by Arch that are used to produce electricity.
The license is being negotiated and is expected to be finalized in the next month. Arch has been a shareholder of ADA since 2003.
ADA has been successful at developing technologies that improve the performance of coals from Wyoming’s Powder River Basin. In addition to flue gas conditioning chemicals used to aid in the collection of ash from PRB coals, the company also developed a brominated activated carbon technology that provides a means of achieving 90 percent removal of mercury emissions from PRB coals and a proprietary coal additive that improves combustion of PRB coals in cyclone boilers. For the past several years, ADA has worked with Arch to explore characteristics of some of their coals that allow them to be burned with lower mercury emissions.
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