ADA-ES and Energy Capital Partners sign joint venture agreement for coal-fired power facility

Oct 02, 2008 (M2 EQUITYBITES via COMTEX) -- ADES | Quote | Chart | News | PowerRating -- ADA-ES Inc (NASDAQ: ADES), which is engaged in clean coal technology and the associated speciality chemicals, reported on 1 October that the company has entered into an agreement with Energy Capital Partners (ECP) to form a joint venture called Crowfoot Development LLC.

The joint venture will be focussed on the production of activated carbon (AC) for the mercury emissions control market for coal-fired power facilities.

Previously, ADA-ES announced that Crowfoot will be constructing the largest AC production facility in the US, which will be sited in northwest Louisiana.

The first production line of this facility will be capable of producing 125 to 175 million pounds of AC per year and is expected to come on-line in 2010. In addition, the air permit for the facility allows for a second production line, which, if constructed, would be capable of producing up to an additional 175 million pounds of AC per year. The total capital cost for the first production line has been estimated at USD350m.

Pursuant to the joint venture, ADA-ES and ECP will provide, subject to certain conditions, the equity capital required to construct the first production line.

In addition ECP will reportedly purchase 3.6 million shares of convertible preferred stock of ADA-ES, subject to shareholder approval and the satisfaction of certain other conditions.

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