| [June 28, 2006] |
 |
ADA-ES Signs Letter of Intent with NexGen to Form Refined Coal JV
LITTLETON, Colo. --(Business Wire)-- June 28, 2006 -- ADA-ES, Inc. (NASDAQ: ADES) today announced that it has signed a Letter of Intent with NexGen Resources Corporation to form a 50/50 Joint Venture to pursue opportunities based upon ADA-ES' Refined Coal technology. The LOI calls for NexGen to pay ADA-ES a nonrefundable fee of $100,000 upon signing, $900,000 upon signing of definitive agreements and completion of certain test results and two additional payments of $2 million each on the first and second anniversary of signing definitive agreements, if NexGen opts to continue its participation in the Joint Venture. The LOI also calls for NexGen to pay 50% of future development cost for the rights to one-half of any tax credits generated from future sales of Refined Coal.
The opportunity is based upon Section 45 tax credits made available through the American Jobs Creation Act of 2004 for a Refined Coal that generates reduced emissions of nitrogen oxides, sulfur dioxide and mercury. The Act provides a tax credit with a current value of approximately $5.60 per ton of Refined Coal, which can be earned for a period of ten years ending in or before 2019. The ADA-ES Refined Coal technology was developed for slagging boilers that the Company expects will create a target market of approximately 60 million tons of Refined Coal per year. ADA-ES will license its Refined Coal technology to the JV on an exclusive basis for the purpose of qualifying for such tax credits.
NexGen is a privately held company dedicated to the development and procurement of natural resources. With over 30 years of experience in the coal business, NexGen is involved in all aspects of the mining, transportation and delivery of coal to utilities. In addition to conventional coal, since 1998 NexGen has been involved with the development and supply of coal-based synfuel. To date, the plants developed by NexGen's synfuel project have qualified for over $600 million in tax credits under Section 29 of the IRS Code.
ADA-ES has conducted two tests of its developing technology and is encouraged by the results. "We are very pleased with the progress we have made thus far with the technology development. We believe that this relationship with NexGen is very strategic for the Company as it provides us the expertise to clarify the IRS regulations for utilities and bring to market a profitable new product," stated Dr. Michael Durham, President of ADA-ES. Mr. Charles McNeil, CEO of NexGen, concurred, "We are excited about this opportunity, which will allow us to leverage our proven expertise in managing and marketing coal-based tax credits and join forces with ADA-ES' world-class emission control expertise. This is the kind of teaming for which the Section 45 program was created."
About ADA-ES
Headquartered in Littleton, Colorado, ADA-ES, Inc. develops and implements proprietary environmental technology and specialty chemicals that mitigate the environmental impacts from electric power and industrial companies, while reducing their operating costs.
About NexGen
NexGen Resources Corporation, headquartered in Denver, Colorado, was founded in 1993 by Charles S. McNeil. NexGen and its affiliated entities comprise a closely-held investment group which manages a diverse portfolio of investments in companies at multiple stages of growth and across multiple industries, with an emphasis on the energy and mining industries.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which provide a "safe harbor" for such statements in certain circumstances. These statements include the Company's expectations regarding the potential market for Refined Coal and ability to bring a profitable new product to market. Such statements involve significant uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including but not limited to changing economic conditions and market demand for ADA-ES' products and services, changes in technology, federal funding, laws or regulations, results of demonstrations of the Company's and other licensed technologies, operational difficulties, availability of skilled personnel, and other factors discussed in the Company's filings with the U.S. Securities and Exchange Commission.
[ Back To TMCnet.com's Homepage ]
|
TMCnet LOGIN
Webinars
