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Calgon Carbon Signs 3 Multi-Year Mercury Removal Deals

Calgon Carbon CorporationCCC announced that it has signed three multi-year supply agreements with major U.S. power generators. Per the deal, Calgon Carbon will supply activated carbon products for the removal of mercury in flue gas of 19 coal-fired power plant generating units, at nine different facilities.

The revenues to be realized from these agreements are expected to total about $20 million. Owning to State-level environmental regulations, eight facilities are using Calgon Carbon's products to control mercury emissions, and one facility is currently controlling mercury emissions under the Mercury and Air Toxics Standards rule.

Two of the agreements, which run through Dec 2017, represent renewals of previous multi-year customer supply agreements. One out of these agreements has been enhanced to include the supply of powdered activated carbon to five additional generating units. The third agreement, which runs through Sep 2018, is with a new customer and per this agreement Calgon Carbon needs to supply six additional generating units.

According to the agreements, Calgon Carbon will supply FLUEPAC STF or FLUEPAC SF3 powdered activated carbon products for mercury removal at 11 generating units. These mercury removal products were selected upon completion of full-scale product trials.

FLUEPAC STF is an advanced product that enables superior mercury removal performance in situations where dry sorbent injection is also being utilized by the power plant for the removal of sulfur dioxide (SO2). FLUEPAC SF3 is an advanced product that enables superior mercury removal performance in situations where sulfur trioxide (SO3) injection is also being utilized by the power plant for flue gas conditioning to improve particulate capture in the electrostatic precipitator.

Calgon Carbon continues to expect its 2015 revenues related to its powdered activated carbon products for mercury control to be in the range of $55 million to $60 million.

Calgon Carbon carries a Zacks Rank #4 (Sell).

Some better-ranked companies in the basic materials space are Energy Recovery, Inc. ERII , Sharps Compliance Corp. SMED and Vertex Energy, Inc. VTNR . All of these stocks sport a Zacks Rank #1 (Strong Buy).

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CALGON CARBON (CCC): Free Stock Analysis Report

ENERGY RECOVERY (ERII): Free Stock Analysis Report

SHARPS COMPLIAN (SMED): Free Stock Analysis Report

VERTEX ENERGY (VTNR): 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 Nasdaq, Inc.


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

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