For a developer of proprietary, state-of-the-art, multi-pollutant control technologies such as Illinois-headquartered Fuel Tech (NASDAQ: FTEK), which has a footprint spanning the gamut from air pollution control (APC) and combustion efficiency, to process optimization and advanced engineering services (like boiler tuning or selective catalytic reduction optimization) – staying ahead of the regulatory game has become second nature. Utility and industrial customers have grown to rely on the Fuel Tech name when it comes to tackling increasingly stringent emission requirements, whether we are talking NOx (nitrogen oxides) control in combustion systems, or pollutants such as mercury. Much of the company’s prowess in the industries it serves can be chalked up to the company’s tremendous amount of in-house chemical injection expertise, as well as FTEK’s sophisticated CFD (Computational Fluid Dynamics) modeling software, and its associated high-end design visualization capabilities.
This fully integrated company’s broad spectrum solutions address fuel flexibility needs and slag control requirements in boiler operations on the one hand, via technologies like FTEK’s FUEL CHEM® programs, which are ideal for lower cost fuels like high-sulfur Powder River Basin and Illinois Basin coals. And on the other, a wide range of APC solutions are on offer to address pre- and post-combustion NOx control requirements – all of which are engineered to collectively be able to tackle just about any combustion or fuel source in use today. With an install base of over 1,000 combustion units worldwide, FTEK is demonstrably one of the leading APC solution providers in the sector today, and the company is constantly innovating in order to stay ahead of incessant regulatory changes. This vital capacity is thanks in large part to the deep bench of talent FTEK has assembled, where more than one quarter of the full-time employees hold advanced degrees. The global air quality control systems market alone is on track by most estimates to be headed upwards of $78 billion by as early as 2019 (http://nnw.fm/8XscR), representing a CAGR of some 6.7 percent from 2014.
Given all this, it is naturally very interesting for investors to see an industry leader like Fuel Tech announce, on Aug 10, the signing of two key external marketing and supply deals aimed at securing additional territory in the emission control solutions space. For such a talented shop like FTEK to be pipelining impactful technologies in mercury control and boiler cleaning from other developers like this speaks volumes about the prevailing regulatory environment, and the industry’s growing need to stay on the bleeding edge of tech. It also says a lot about Fuel Tech management’s vision, as this latest move is a clear example of FTEK leadership doubling down on their New Product Development initiatives. The company is seeking to wring the inherent value out of its lineup of proven emissions control tech, supercharging its portfolio with the addition of new tech that can address high-demand areas like truly effective mercury removal.
The first and perhaps most important partnering recently announced is with Redox Solutions, whose patented Redox-Hg technology (a minimally soluble inorganic colloidal suspension, also known by the trade name FerroBlack®) has been in use for over half a decade to enhance total mercury removal in wet FGD (flue-gas desulfurization) scrubbers. A growing population of operators, who see mercury re-emission in standard SCR (Selective Catalytic Reduction) catalyst plus wet FGD setups, have been beating a steady path to Redox’s door of late. And the Effluent Limitation Guidelines Rule that the EPA has hammered out for the utility industry makes this high-value technology’s selenium removal capabilities particularly interesting longer-term.
With natural bedrock drivers here such as the Industrial Boiler MACT (Maximum Achievable Control Technology) Rule and MATS (Mercury and Air Toxic Standards) Rule, there is a bounteous future for FTEK after having added Redox’s tech to its portfolio. And it is worth noting here that the Redox tech does indeed dovetail nicely with FTEK’s existing portfolio of offerings, such as its patented ASCR™ (Advanced SCR) process capable of 90 plus percent NOx reductions at a fraction of the cost of most SCR systems, or its proven urea-based SNCR tech (Selective Non-Catalytic Reduction) like NOxOUT®, and HERT™ (High Energy Reagent Technology™) – which are uniquely characterized by how easily they combine with and accentuate other NOx reduction technologies.
A similar partnering by FTEK with PowerPlus Cleaning Systems, developers of the revolutionary IMPULSE™ boiler cleaning tech, a fuel-efficient boiler cleaning setup that bypasses the need for steam soot blowing, yet destroys tough ash/slag deposits better than existing methods – comparably dovetails with FTEK’s proven TIFI® (Targeted In-Furnace Injection™) treatment process. In fact, while less obvious, this might even be the better of the two deals, in that IMPULSE and TIFI really are extremely symbiotic in terms of the most common implementations. Moreover, IMPULSE has been highlighted prominently in India via state-owned utility NTPC’s own conference, making the de-slagging power of the IMPULSE/TIFI one-two punch a force to be reckoned with in this key growth market.
The air quality control systems market in the Asia-Pacific region is on track to outperform the global market slightly as well, with estimates that this region’s growing APC metrics could drive a market that was worth just $33.2 billion in 2014, upwards of $46 billion by 2019 (http://nnw.fm/6x7Nr) – a CAGR of some 6.7 percent. India and China are going to be the biggest growth markets, obviously, and with China set to open a new coal-fired plant every week until 2020 (http://nnw.fm/kv6Qz), potentially throwing away roughly $150 billion on overcapacity amid steep new emission targets, India’s similar issues seem tame by comparison.
This is a perfect storm brewing abroad and with a thriving domestic market on the table as well (driven by similarly shrinking emissions largess), a player like FTEK could stand to make a mint here, getting out ahead of the trend as it has been known to do, leveraging a broad spectrum hardware portfolio approach to the market, and the ancillary services to back up its growing clout. Fuel Tech’s vast set of combustion unit solutions must be seen to be believed and it is incumbent upon investors to learn more about this important industry player, especially when you consider how the company actually licensed its SNCR tech to one of India’s leading engineering companies a few months back, and is really just now starting to exploit its strategic market position with big operational model spurts.
For more information, visit www.ftek.com
About NetworkNewsWire
NetworkNewsWire (NNW) provides news aggregation and syndication, enhanced press release services and a full array of social communication solutions. As a multifaceted financial news and distribution company with an extensive team of journalists and writers, NNW is uniquely positioned to best serve private and public companies who need to reach a wide audience of investors, consumers, journalists and the general public. NNW has an ever-growing network of more than 5,000 key distribution outlets across the country. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge. For more information, visit www.networknewswire.com.
Please see full disclaimers on the NetworkNewsWire website: http://nnw.fm/Disclaimer
