(FTEK) Awarded Air Pollution Control Orders Totaling $4.4 Million

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 the receipt of multiple air pollution control (APC) contracts from customers in the US, Europe and China. These awards have an aggregate value of approximately $4.4 million.

The US order is for conventional Selective Catalytic Reduction (SCR) systems on three gas-fired combustion turbines with heat recovery steam generators for a project at an industrial facility in the northeast. These systems include reactors and catalyst to reduce nitrogen oxide (NO_x) emissions, along with flow mixing devices, aqueous ammonia feed systems and ammonia injection grids, all of which are key to optimal SCR performance. These systems also include catalyst to reduce carbon monoxide (CO) emissions. This is the equipment phase following the engineering order received earlier this year. Delivery of equipment is scheduled for the first quarter of 2017.

In the UK, a contract for a demonstration of Fuel Tech’s Advanced NO_xOUT^® Selective Non-Catalytic Reduction (ASNCR) technology was received for a large coal-fired unit. The ASNCR system utilizes proprietary state-of-the-art injectors and injection controls in combination with advanced temperature measurement techniques to provide NO_x reduction efficiency well beyond conventional SNCR in difficult furnace environments. The demonstration is expected to occur in the first quarter of 2016.

In China, an order was received for multiple ULTRA™ systems that will be installed on units firing municipal solid waste, which are being retrofitted with NO_x 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 where SCR is used to reduce NO_x, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. An additional award was received for Fuel Tech’s NO_xOUT^® Selective Non-Catalytic Reduction (SNCR) systems for multiple coal-fired utility boilers. Equipment deliveries for both contracts are expected to occur in the second quarter this year.

Vincent J. Arnone, President and Chief Executive Officer, commented, “These orders continue to demonstrate our capabilities to provide cost-effective technology solutions on a global basis. Our SCR technology opportunities continue to grow as the use of natural gas is expanding for both power generation and industrial applications, while our ULTRA technology simplifies on-site ammonia generation for SCR applications of all types. We are encouraged by the continuing interest in our ASNCR technology, which was first demonstrated in Europe during 2013. These demonstrations have generated permanent equipment orders for multiple units in the UK, and we see a variety of market segments that could potentially benefit from this next generation of our SNCR technology. ASNCR could also be applied to our existing large installed base of SNCR customers through system upgrades to provide additional NO_x reduction or lower reagent operating costs.”

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 (NO_x) reduction technologies include advanced combustion modification techniques and post-combustion NO_x control approaches, including NO_xOUT^®, HERT™, and Advanced SNCR systems, ASCR™ Advanced Selective Catalytic Reduction systems, and I-NO_x™ Integrated NO_x Reduction Systems, which utilize various combinations of these systems, along with the ULTRA™ process for safe ammonia generation. These technologies have established Fuel Tech as a leader in NO_x reduction, with installations on over 900 units worldwide.

Fuel Tech’s technologies for particulate control include Electrostatic Precipitator (ESP) products and services including complete turnkey capability for ESP retrofits, with experience on units up to 700 MW. Fuel gas conditioning (FGC) systems include treatment using sulfur trioxide (SO₃) and ammonia (NH₃) based conditioning to improve the performance of ESPs by modifying the properties of the fly ash particle. Fuel Tech’s particulate control technologies have been installed on more than 125 units worldwide.

The Company’s FUEL CHEM^® technology revolves around the unique application of chemicals to improve the efficiency, reliability, fuel flexibility, boiler heat rate, and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and improving boiler operations. The Company has experience with this technology, in the form of a customizable FUEL CHEM program, on over 110 units.

Fuel Tech also provides a range of services, including boiler tuning and selective catalytic reduction (SCR) optimization services. 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 www.ftek.com.

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.

Fuel Tech, Inc.
David S. Collins, 630-845-4500
Chief Financial Officer
or
The Equity Group Inc.
Devin Sullivan, 212-836-9608
Senior Vice President