Fuel Tech (FTEK) Awarded $36.6 Million Air Pollution Control Contract in Chile

Represents the Largest Air Pollution Control Contract in Company History

Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advanced engineering solutions for combustion and emissions control systems for utility and industrial applications, today announced it was awarded the largest air pollution control contract in its history. The $36.6 million order, placed by E.CL S.A., a major utility in Chile, includes turnkey installation of Low NO_x Burners (LNBs) and Over-Fire Air (OFA) systems and mill modernization for six coal-fired units. Equipment deliveries are scheduled to commence during the first quarter of 2013, with project completion occurring during the third quarter of 2014.

Fuel Tech’s burner technologies are a cost-effective way to reduce nitrogen oxide (NO_x) emissions and solve combustion problems in coal, gas or oil combustion systems. Fuel Tech’s OFA systems reduce NO_x formation by diverting air from the burner zone to the upper furnace for enhanced combustion staging. Low NO_x Burners limit the formation of thermal NO_x and control how the fuel bound nitrogen is released.

“We have consciously expanded our international presence to achieve both growth and regulatory diversification in our air pollution control business. We have strategically focused on key geographic markets and are thrilled to be announcing an order of this magnitude,” commented Douglas G. Bailey, Chairman, President and Chief Executive Officer. “In terms of installed capacity, E.CL S.A. is a major electric generator in Chile and is the main electricity provider in the country’s northern energy grid. In this instance, E.CL is upgrading its combustion systems to reduce NO_x emissions below 500 mg/m³ in order to comply with the new Chilean environmental law signed by the President of the Republic of Chile on January 18, 2011. French-Belgian electric company GDF Suez S.A., a global leader in independent power generation, holds a majority controlling stake in E.CL.”

Mr. Bailey concluded, “We are pleased to be partnering with a customer of this size and caliber. This contract award represents our second LNB project in Chile and demonstrates our global reach and combustion capabilities. With our industry-leading suite of air pollution control products and services, we believe we are well positioned to compete for additional opportunities for combustion optimization in the domestic and international markets.”

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 – such as Low NO_x Burners and Over-Fire Air systems – and post-combustion NO_x control approaches, including NO_xOUT^® and HERT™ SNCR systems as well as systems that incorporate ASCR™ (Advanced Selective Catalytic Reduction), CASCADE™, ULTRA™ and NO_xOUT-SCR^® processes. These technologies have established Fuel Tech as a leader in NO_x 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 (PM_2.5), carbon dioxide and NO_x. 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 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.