Business
Arq Secures Second Contract for its Granular Activated Carbon (GAC) Facility
New customer contract for 4 million pounds of GAC per annum in specialist market GREENWOOD VILLAGE, Colo., June 18, 2024 (GLOBE NEWSWIRE) -- Arq, Inc.
About this update from Arq, Inc.
[{"type":"text","content":"New customer contract for 4 million pounds of GAC per annum in specialist market\nGREENWOOD VILLAGE, Colo., June 18, 2024 (GLOBE NEWSWIRE) -- Arq, Inc. (NASDAQ: ARQ) (the \"Company\" or \"Arq\"), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced its second major sales contract for the supply of GAC to be produced from its strategic Red River facility. This agreement, with a company specializing in the manufacturing of personal and industrial air purification devices, has a commencement date of January 2025 and scales up to an ultimate run-rate requirement of 4 million pounds of GAC per year. This second GAC contract is in addition to the 5 million pound per year agreement announced in May 2024 (here). At its 4 million pound per annum run-rate and in conjunction with the previously announced contract, these two agreements reflect approximately 36% of the Red River facility's initial 25 million pounds per year GAC nameplate capacity, due to come online by year-end 2024. Bob Rasmus, CEO of Arq, remarked, “This second contract is not just a win for Arq, it’s a testament to the industry’s confidence in our GAC solutions and strategic vision. Our first contract was with a North American solutions provider of water and wastewater treatment, principally addressing the PFAS market. This latest contract is focused on specialized air purification, underscoring the market’s recognition of our superior product, the value of our environmental technology and the breadth of our potential industry applications. We’re proud to continue to provide transparency regarding contract wins and with 36% of our Red River capacity now contracted nearly seven months ahead of the plant’s commissioning, we're delivering ahead of our internal expectations as well as validating our view that the market is in short supply of high quality, fully integrated and domestically manufactured GAC. For these reasons, our conversations with additional potential customers are progressing well and we remain in a strong position to fully contract our capacity with compelling terms before production begins at the end of 2024.” Garrett Chandler, VP Sales of Arq, expressed, “This second agreement confirms our position as a strategic partner to customers who want high quality GAC ...