Arq, Inc. · NASDAQ:ARQ
Arq — Advanced Emissions Solutions — Singular Research Conference 2014
25 slides from Arq's conference presentation, Nov 20, 2014
Slide 1: Singular Research Conference November 20, 2014
Singular Research Conference November 20, 2014 www.advancedemissionssolutions.com Exhibit 99.2
Slide 2: Forward-looking statements
© 2012-2014 Advanced Emissions Solutions, Inc. -2- This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include state
Slide 3: Who We Are
© 2012-2014 Advanced Emissions Solutions, Inc. -3- A family of companies that has been providing emission control solutions to the power industry for more than 30 years Portfolio of proprietary, low CAPEX technologies to meet pollution control mandates. 20 US patents issued or allowed Customers incl
Slide 4: Portfolio of Emissions Control Solutions
-4- © 2012-2014 Advanced Emissions Solutions, Inc. Refined Coal- $0 cost to utility M-Prove ™ Technology ~$100k capex, $1-$4/ton reduced compliance cost ACI/DSI- $1-$3M in capex Large E&C firms ACI System DSI System Boiler Coal Pile ACI System for Mercury Control P ORTFOLIO OF E MISSIONS C ONTROL S
Slide 5: Near-term growth opportunities
-5- © 2012-2014 Advanced Emissions Solutions, Inc. Near-term growth opportunities Refined Coal Customers ordering and installing MATS equipment 2012- 2016 We are a leading provider of equipment to meet MATS Activated Carbon Injection Systems Dry Sorbent Injection Systems Created ~$700-900M equipment
Slide 6: MATS Equipment Awards Won by ADA & BCSI
-6- © 2012-2014 Advanced Emissions Solutions, Inc. MATS E QUIPMENT A WARDS W ON BY ADA & BSCI
Slide 7: Emissions Control Solutions: ACI, DSI, M-Prove Technology
-7- ACI Systems DSI Systems M-Prove ™ Technology © 2012-2014 Advanced Emissions Solutions, Inc. Powdered Activated Carbon reduces mercury emissions in the flue gas Dry alkaline sorbents injected in flue gas for SO and acid gas control M-Prove ™ technology Optimization technology Flue Gas Conditionin
Slide 8: Emission Control Compliance Market
-8- © 2012-2014 Advanced Emissions Solutions, Inc. April 2015/2016 MATS deadlines to drive market for compliance services, including a $1 to $2 billion annual market for consumables ADES operating companies offerings to include: Chemicals M-Prove ™ technology RESPond ™ flue gas conditioning technolo
Slide 9: Clean Coal Solutions Ownership Structure
-9- Clean Coal Solutions Ownership Structure © 2012-2014 Advanced Emissions Solutions, Inc. G OLDMAN S ACHS 15% ADES 42.5% Section 45 of the Internal Revenue Code offers $6.60/ton in tax credits for the production of pollution mitigating RC through 2021 Qualifying RC facilities must reduce mercury b
Slide 10: Typical Steps to Full-Time RC Facility Operations
© 2012-2014 Advanced Emissions Solutions, Inc. -10- Initiate discussion with utility Sign Non-Disclosure Agreement Begin discussions with utility (senior leadership, legal, financial, environmental, plant managers, coal suppliers, ash brokers, etc.) Get go-ahead from the utility (this is different f
Slide 11: Outlook for 28 RC Facilities
+100 MT/yr +42MT/yr Full-Time Operations Road Map 28 RC facilities in full- time operation © 2012-2014 Advanced Emissions Solutions, Inc. -11- O UTLOOK FOR 28 RC F ACILITIES 12 RC facilities leased/sold ~8 MT/yr Nov 2014 5 RC facilities CCS-operated Expect to treat more than 100MT/yr with 28 RC faci
Slide 12: What's Next: Help our clients meet new regulations
-12- © 2012-2014 Advanced Emissions Solutions, Inc. Help our clients meet new regulations Greenhouse Gases Coal Combustion Residuals Effluents Guidelines Advancing Cleaner Energy New emissions regulations on the gas industry W HAT ’ S N EXT
Slide 13: CO2 Capture Development
© 2012-2014 Advanced Emissions Solutions, Inc. -13- CO C APTURE D EVELOPMENT Developing proprietary solid sorbent capture technology to capture CO from flue gas in conventional coal-fired boilers DOE and industry funding: Pilot plant Phase I — $3.8 million, R&D at 1 KWe scale, completed in 2011 Phas
Slide 14: New Regulations Pending
-14- © 2012-2014 Advanced Emissions Solutions, Inc. Coal Combustion Residuals Regulation (CCR) Draft rule in June 2010, final rule expected in 2014 Steam Effluent Limitation Guidelines (ELG) Sets the first federal limits on the levels of toxic metals in wastewater discharges from steam electric powe
Slide 15: Key Takeaways
© 2012-2014 Advanced Emissions Solutions, Inc. -15- RC opportunities expected to provide substantial growth in revenues, profits and cash flows; consistent revenue streams through 2021 Upcoming MATS compliance requirements are driving significant near-term market for equipment Consumables and servic
Slide 16: Accounting review and re-audits update
-16- © 2012-2014 Advanced Emissions Solutions, Inc. The Company continues with its accounting review. Based on recent determinations the Company is re-assessing the time required to finalize the re-audits and file any required restatements. Background On April 24, 2014 the Company announced that it
Slide 17: Appendix
© 2012-2014 Advanced Emissions Solutions, Inc. APPENDIX
Slide 18: Corporate Structure
-18- © 2012-2014 Advanced Emissions Solutions, Inc. ADA-ES, Inc. 100% owned ADES BCSI, LLC 100% owned ADES Clean Coal Solutions, LLC 42.5% owned ADA-ES, Inc. Operating Companies C ORPORATE S TRUCTURE
Slide 19: Coal and US Electricity Generation
-19- © 2012-2014 Advanced Emissions Solutions, Inc. COAL AND US ELECTRICITY GENERATION Source: EIA 2012: lowest power demand since 1987, natural gas prices reach a low of $1.91/MM/btu- 2012 average of $2.77/MMbtu
Slide 20: Mercury Control - 15 Years in the Making
-20- © 2012-2014 Advanced Emissions Solutions, Inc. EPA determines it necessary to regulate mercury 2000 2009 2005 2008 EPA issues Clean Air Mercury Rule D.C. Circuit Court vacates the Clean Air Mercury Rule EPA proposes new rule to replace the vacated CAMR EPA issues draft of Mercury Air Toxic Stan
Slide 21: ACI Market Share
Boilers Treated by ACI Systems © 2012-2014 Advanced Emissions Solutions, Inc. -21- ACI M ARKET S HARE Source: Institute of Clean Air Companies, May 2013.
Slide 22: ADA Standard ACI System
-22- © 2012-2014 Advanced Emissions Solutions, Inc. Bin Vent Filter Man-door with PRV Level Transmitters PAC Storage Module Process Equipment Module ADA STANDARD ACI SYSTEM
Slide 23: Refined Coal: Introduction & Overview
© 2012-2014 Advanced Emissions Solutions, Inc. -23- REFINED COAL: INTRODUCTION & OVERVIEW The American Jobs Creation Act of 2004, Section 45 of the IRC: contains provisions to incentivize the production of pollution mitigating Refined Coal (RC) via annually escalating tax credits per ton of coal bur
Slide 24: Refined Coal Photographs
-24- © 2012-2014 Advanced Emissions Solutions, Inc. REFINED COAL PHOTOGRAPHS
Slide 25: Contacts
-25- © 2012-2014 Advanced Emissions Solutions, Inc. C ONTACTS Graham Mattison Vice President, Investor Relations (720) 889-6206 graham.mattison@adaes.com Michael D. Durham, Ph.D., MBA President & CEO
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