Calgon Carbon Wins 10-Year Reactivation Contract - Analyst Blog


Calgon Carbon Corporation ( CCC ) has clinched the third ten-year reactivation services contract in Arizona since the beginning of 2012. The company has signed the third contract with the City of Glendale, under which it will provide reactivation services to the latter for activated carbon used to treat the city's drinking water.

The value of the contract will depend on the amount of spent activated carbon that is reactivated annually, which is expected to be roughly 1.25 million pounds.

The city of Glendale which is located on the western side of the Phoenix metropolitan area uses granular activated carbon (GAC). The usage of GAC in the city is in compliance with the U.S. Environmental Protection Agency's Stage 2 Disinfectants and Disinfection Byproducts Rule. The Rule sets up maximum levels at which disinfection byproducts (DBPs) are permitted to be present in drinking water.

Glendale has been using reactivated carbon for several years and the contract underscores its belief in the economic and environmental benefits of reactivated GAC for drinking water treatment.

The uniqueness of GAC lies in its organic compounds removing capacity from the water, which results in reducing the formation of byproducts after the addition of chlorine. Glendale selected the GAC method of reactivation service with the usage of chlorine as it is more effective than other methods that uses alternative disinfectants and carries a possibility of producing other potentially harmful byproducts.

Prior to the Glendale contract, Calgon Carbon had entered into two other ten-year contracts in Arizona since the start of 2012. One of those was signed with the City of Phoenix in Mar 2012 and the other one was signed with the City of Scottsdale in Jun 2012.

Calgon Carbon built  a new advanced reactivation facility in Gila Bend, Ariz., which came into operation in Apr 2013.  The reactivation facility was built to meet the requirements of the three cities - Glendale, Phoenix and Scottsdale - besides other cities throughout the southwestern U.S. The facility has an annual reactivation capacity of roughly 25 million pounds.

Calgon Carbon retains a Zacks Rank #2 (Buy).

Other companies in the pollution control industry worth considering are Sharps Compliance Corp. ( SMED ), CECO Environmental Corp. ( CECE ) and Perma-Fix Environmental Services Inc. ( PESI ). While Sharps Compliance carries a Zacks Rank #1 (Strong Buy), both CECO Environmental and Perma-Fix Environmental hold a Zacks Rank #2 (Buy).

CALGON CARBON (CCC): Free Stock Analysis Report

CECO ENVIRNMNTL (CECE): Free Stock Analysis Report

PERMA-FIX ENVIR (PESI): Free Stock Analysis Report

SHARPS COMPLIAN (SMED): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CCC , CECE , PESI , SMED

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