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Advanced Emissions Solutions, Inc. Message Board

  • md841 md841 Sep 14, 2011 11:11 AM Flag

    Red River


    The DOE said it plans to make decisions on all its condition loan gaurantees by the end of September; now only 2 weeks away. Does anyone know if Red River is still "in the hunt"?

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    • What what I heard on one conference call, this D0E loan guarantee is not that big of deal anymore because the liquidity crisis is over.

      Read the other day that ADES ownership interest in Red River is down to 22%.

      You have any idea what the AC market is like these days?

      • 1 Reply to mercurybuster
      • Merc
        I was told that AC is holding at ~$1/lb and that is where ADA is modeling numbers into 2012. If it rises due to demand/supply imbalances, all the better.
        RedRiver is currently operating at apprx 35% capacity until demand accelerates into 2013-2014. They are selling to the water mkts to some limited degree and are showing operating losses but they have break-even cash flows.
        ADA's share of those operating losses is 22-23% on the first line so it has a beneficial impact on ADA's bottom line to have their share of this line down to 22% for the time being.
        At this point, ADA expects to be able to maintain a 50/50 ownership status on subsequent lines.
        Noritt royalties still have to be paid out of ADA's cash flow however.

        On the DOE loan guarantee, it is now irrelevant I believe due to the fact that ECP funded the first line. Whether it will play into any subsequent line financing, we'll see. There were significant DOE "strings" attached to the financing that ADA was cautious about however, so I'm glad they are being careful.

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