Advanced Emissions Solutions Provides Update on Red River Expansion Plan
Company working with the State of Louisiana on a five-phase capital plan at Red River with initial construction set to begin in November
Initial investment of $45-50 million with option to expand scope up to $251 million at the Company's sole discretion
GREENWOOD VILLAGE, Colo., Oct. 23, 2023 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (NASDAQ:ADES) (the "Company" or "ADES"), a producer of activated carbon, and other environmentally efficient carbon products for use in purification, sustainable energy, sustainable materials and energy transition, today announced that the initial phase of construction at Red River is expected to begin in November. The initial phase of construction will include the installation of new shaping and heat treatment processes to leverage its new high performance and vertically integrated bituminous based feedstock and facilitate the Company's future ability to produce commercial scale granular activated carbon.
"We are very excited to take these first major steps toward realizing our growth plans and capturing the full potential of our asset base," said Robert Rasmus, CEO of ADES. "The application with the state of Louisiana was a comprehensive outline that allows us to take a phased and diligent approach to our expansion plans. It's important to note that we retain the optionality to time this expansion, and we are in the process of finalizing the complete evaluation of our expansion. Given the tremendous market opportunity, the evaluation is focused on optimizing timing. We're thrilled to be working alongside state of Louisiana and federal authorities as we work towards our goals of being the safest, lowest cost producer in the industry and ensuring a cleaner, healthier world now and for future generations."
The initial phase of the expansion plan includes an investment by ADES of $45-50 million with the option to expand the scope of the plant up to $251 million at the Company's sole discretion based on realized growth, forecasts, hiring plans, and other factors. The project will be worked over five phases and is expected to be completed by the end of 2026 if fully implemented.
ADES also expects to benefit from an incentives package provided by the state of Louisiana. These incentives include a performance-based grant for construction and infrastructure expenditures and as well as tax breaks related to the Company's expected participation in the state of Louisiana's Industrial Tax Exemption and Quality Jobs programs. The Company continues to engage in discussions with both state and federal authorities to help create a more sustainable future.
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.
FluxSorb, LLC, formed in 2022, is an emerging technology company that introduces highly engineered activated carbon products with a focus on the emerging remediation markets. Our vision is to partner with our customers to collaborate, develop and deploy best in class activated carbon solutions to meet even the most extreme challenges.
Arq is an environmental technology business founded in 2015 that has developed a novel process for producing specialty carbon products from coal mining waste. Arq has the technology and large-scale manufacturing facilities to produce a micro-fine hydrocarbon powder, Arq powder™, that can be used as a feedstock to produce activated carbon and as an additive for other products.
Caution on Forward-Looking Statements
Statements in this press release regarding the Company's business that are not historical facts, including statements concerning timing and costs of capital plans and optimizing cash flows, are forward-looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. The Company undertakes no duty to update publicly any forward-looking statement that it may make, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
Source: Advanced Emissions Solutions, Inc.
Investor Contact:
Alpha IR Group
Ryan Coleman or Chris Hodges
312-445-2870
[email protected]
