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TMCNet:  Fuel Tech Awarded Air Pollution Control Orders Totaling $3.2 Million

[January 14, 2013]

Fuel Tech Awarded Air Pollution Control Orders Totaling $3.2 Million

WARRENVILLE, Ill. --(Business Wire)--

Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advanced engineering solutions for the optimization of combustion systems and emissions control in utility and industrial applications, today announced it received four air pollution control contracts in China, along with several orders in the US and Europe.

The first award is for an SNCR system on a cement kiln in China. SNCR technology can provide NOx reduction from cement production processes without the challenges associated with the application of SCR technology. The cement produced from a kiln can affect SCR catalyst life or may require system design changes or additional components. Equipment delivery is scheduled for the second quarter of 2013.

The other three awards in China, two of which are from new utility customers, represent ULTRA™ systems for six medium-sized coal-fired units that are being retrofitted with NOx reduction 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 in the selective catalytic reduction of NOx, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Equipment deliveries for these projects are expected to occur in the second quarter of this year.

Other contracts include an engineering study for NOx control technologies from a utility in Europe, a project in the Western US to demonstrate the application of SNCR technology, and several CFD modeling projects associated with the evaluation of SCR technology.

Douglas G. Bailey, Chairman, President and Chief Executive Officer, commented, "We are excited about Fuel Tech's first project for the cement industry in China, which has grown in recent years to become the global leader in the production of cement. In addition to opportunities in the utility market in China, we continue to see growth from industrial units including cement kilns as a result of more stringent NOx control regulations in the Pacific Rim market. Fuel Tech has SNCR systems operating successfully on other cement applications for more than a decade in Europe and the Pacific Rim, and we anticipate future opportunities in China's cement market."

Mr. Bailey continued, "We are pleased to see continued adoption of Fuel Tech's proprietary ULTRA technology and are witnessing an increasing level of bid requests throughout China. As more SCR systems are installed to comply with NOx reduction requirements of the naion's 12th Five-Year Plan, we anticipate an expanding market opportunity and additional orders for our proven technologies."

About Fuel Tech

Fuel Tech is a leading technology company engaged in the worldwide development, commercialization and application of state-of-the-art proprietary technologies for air pollution control, process optimization, and advanced engineering services. These technologies enable customers to produce both energy and processed materials in a cost-effective and environmentally sustainable manner.

The Company's nitrogen oxide (NOx) reduction technologies include advanced combustion modification techniques - such as Low NOx Burners and Over-Fire Air systems - and post-combustion NOx control approaches, including NOxOUT® and HERT™ SNCR systems as well as systems that incorporate ASCR™ (Advanced Selective Catalytic Reduction), NOxOUT CASCADE®, ULTRA™ and NOxOUT-SCR® processes. These technologies have established Fuel Tech as a leader in NOx reduction, with installations on over 700 units worldwide, where coal, fuel oil, natural gas, municipal waste, biomass and other fuels are utilized.

The Company's FUEL CHEM® technology revolves around the unique application of chemicals to improve the efficiency, reliability, fuel flexibility and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and operational issues associated with sulfur trioxide, ammonium bisulfate, particulate matter (PM2.5), carbon dioxide and NOx. The Company has experience with this technology, in the form of a customizable FUEL CHEM program, on over 110 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste.

Fuel Tech also provides a range of combustion optimization services, including airflow testing, coal flow testing and boiler tuning, as well as services to help optimize selective catalytic reduction system performance, including catalyst management services and ammonia injection grid tuning. In addition, flow corrective devices and physical and computational modeling services are available to optimize flue gas distribution and mixing in both power plant and industrial applications.

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. These capabilities, coupled with the Company's innovative technologies and multi-disciplined team approach, enable Fuel Tech to provide practical solutions to some of our customers' most challenging problems. For more information, visit Fuel Tech's web site at

This press release may contain statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Fuel Tech files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.

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