Wall Street Transcript Interview with Michael Durham, President and CEO of ADA-ES, Inc. (ADES)

Wall Street Transcript

67 WALL STREET, New York - July 19, 2013 - The Wall Street Transcript has just published its Agricultural & Specialty Chemicals Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Crop Yield Management - U.S. Corn Crop - Chemicals Companies Pricing Power - Fertilizers, Paints and Coatings, and Petrochemicals - Emerging Market Demand - Specialty Chemicals and Fertilizer Pricing Power

Companies include: ADA-ES Inc. (ADES) and many more.

In the following excerpt from the Agricultural & Specialty Chemicals Report, the President and CEO of ADA-ES, Inc. (ADES) discusses company strategy and the outlook for this vital industry:

TWST: Which of your other technologies are currently creating good opportunities for you, and how have you positioned the company to take advantage of those opportunities that are on the horizon that haven't really come to fruition yet?

Dr. Durham: They're primarily built around this new - and I call it a mercury rule, but it's actually bigger than just mercury. It's called the Mercury and Air Toxics Standard, or MATS. And in the MATS rule, the Environmental Protection Agency requires power plants to control five different pollutants, one of which is mercury, which we have a couple of technologies to comply with the new standard. Another is acid gases, and so for acid gases, we also have a control technology called dry sorbent injection, or DSI. This is supplied by a company in Pittsburgh that we bought last year called BCSI.

So as we look at the opportunities created by MATS, the first market is going to be supplying equipment for meeting limits on both mercury and acid gases. Just to give you an idea on the size of that market, we think that's going to be about $1 billion worth of equipment for acid gases and mercury that will be purchased and installed between now and 2015, with some of this market moving a little bit into 2016. We have historically maintained 35% market share of that business. So we're expecting more than $300 million in equipment revenues as part of this new rule.

Once we get to the time frame in which they have to comply, it actually starts a bigger market for consumables - required, for example, to control mercury. And we believe that market could be as much as $1 billion to $2 billion per year for the chemicals needed to control mercury. So the first part is buying equipment, the next part is buying chemicals, and we have a proprietary technology, chemical technology that will be competing in that $1 billion-plus market per year that's starting in 2015.

TWST: What are your top strategic goals for the second half of 2013?

Dr. Durham: The main goal is to...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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