About Fuel Tech

Fuel Tech, Inc., a technology company, engages in the worldwide development, commercialization, and application of state-of-the-art proprietary technologies for air pollution control, process optimization, water treatment and advanced engineering services. These technologies enable the company’s customers to operate efficiently in an environmentally sustainable manner. The company’s nitrogen oxide (NOx) reduction technologies include advanced combustion modification techniques and post-combustion NOx control approaches, including NOxOUT, HERT High Energy Reagent Technology, and Advanced Selective Non-Catalytic Reduction (SNCR) systems, ASCR Advanced Selective Catalytic Reduction systems, and I-NOx Integrated NOx Reduction Systems, which utilize various combinations of these systems, along with the UDI Urea Direct Injection system for Selective Catalytic Reduction (SCR) reagent supply, and the ULTRA process for safe ammonia generation. These technologies have established Fuel Tech as a leader in NOx reduction, with installations on over 1,200 units worldwide. Fuel Tech’s Air Pollution Control (APC) technologies include particulate control with Electrostatic Precipitator (ESP) products and services, including complete turnkey capability for ESP retrofits, with experience on units up to 700 MW. Flue gas conditioning (FGC) systems include treatment using sulfur trioxide (SO3) and ammonia-based conditioning to improve the performance of ESPs by modifying the properties of fly ash particles. Fuel Tech’s particulate control technologies have been installed on more than 125 units worldwide. The company’s FUEL CHEM technologies revolve around the unique application of chemical injection programs which improve the efficiency, reliability, fuel flexibility, boiler heat rate and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter, sulfur dioxide, and carbon dioxide. The company uses its proprietary TIFI Targeted In-Furnace Injection processes to apply specialty chemical programs to units burning a wide variety of fuels, including coal, heavy oil, biomass, and municipal waste. These TIFI programs incorporate design, modeling, equipment, reagent, and service to provide complete customized on-site programs designed to improve plant operations and provide a return on investment in addition to helping meet emission regulatory requirements. Water treatment technologies include DGI Dissolved Gas Infusion Systems which utilize a patent-pending channel injector and a patent-pending saturator to provide a competitive advantage over conventional water and wastewater treatment aeration. An innovative alternative to current aeration technology among other applications, DGI systems can deliver supersaturated oxygen solutions and other gas-water combinations to target process applications or environmental issues. This infusion process has a variety of applications in the water and wastewater segments, including irrigation, treatment of natural waters, supply of oxygen for biological remediation and wastewater odor management. The DGI technology is in the demonstration phase with limited revenues. Third party validation testing of the efficiency of transferring oxygen to a treatment basin has been completed and results have been published. Many of the company’s products and services rely heavily on its Computational Fluid Dynamics (CFD) and Chemical Kinetics Modeling (CKM) capabilities, which are enhanced by internally developed, high-end visualization software. These capabilities, coupled with the company’s innovative technologies and multi-disciplined team approach, enable the company to provide practical solutions to some of its customers' most challenging issues. The company also sells air pollution control systems outside the U.S., specifically in Europe, Latin America, India (under a license agreement) and in the Pacific Rim. The demand for the company’s technologies comes from specific governmental regulations in NOx and particulate matter emission limits which vary by country. Segments The company has two broad technology segments that provide advanced engineering solutions to meet the pollution control, efficiency improvement, and operational optimization needs of coal and natural gas-fired energy-related facilities worldwide. They are as follows: The Air Pollution Control technology segment includes technologies to reduce NOx emissions in flue gas generated by the firing of natural gas or coal from boilers, incinerators, furnaces and other stationary combustion sources. These include Over Fire Air (OFA) systems, NOxOUT and HERT SNCR systems, and SCR systems. The company’s SCR systems can also include AIG, and GSG systems to provide high NOx reductions. ULTRA technology creates ammonia at a plant site using safe urea for use with any SCR application. ESP technologies make use of electrostatic precipitator products and services to reduce particulate matter. FGC systems are chemical injection systems offered in markets outside the U.S. and Canada to enhance electrostatic precipitator and fabric filter performance in controlling particulate emissions. The FUEL CHEM technology segment which uses chemical processes in combination with advanced CFD and CKM boiler modeling for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in coal-fired furnaces and boilers through the addition of chemicals into the furnace using TIFI Targeted In-Furnace Injection technology. Air Pollution Control (APC) Regulations and Markets: Domestic The future growth of the company’s APC technology segment is dependent upon the adoption and enforcement of environmental regulations in the United States (U.S.) and globally. In the U.S., federal and state laws regulating the emission of NOx are the primary driver in the company’s APC technology segment. The principal regulatory drivers in effect are as follows: the CAA requires the U.S. Environmental Protection Agency (EPA); Clean Air Visibility Rule (CAVR); Best Available Control Technology (BACT); and the U.S. Department of Justice or EPA. Products The company’s NOx reduction and particulate control technologies are installed worldwide on over 1,200 combustion units, including utility, industrial and municipal solid waste applications. The company’s products include customized NOx control systems and its patented ULTRA technology, which converts urea-to-ammonia on site and provides safe reagent for use in SCR systems. SCR Systems and Services: The company’s SCR systems control NOx emissions from industrial and utility sources including boilers, incinerators, kilns, reformers and many other types of heat recovery equipment firing coal, natural gas, oil, and a variety of process gases and waste fuels. The SCR systems typically include urea or ammonia storage and delivery subsystems, reagent injection systems in the form of an Ammonia Injection Grid (AIG), catalyst reactor vessel and SCR catalyst. In addition, other related services, including start-ups, maintenance support and general consulting services for SCR systems, AIG design and tuning to help optimize catalyst performance, and catalyst management services to help optimize catalyst life, are now offered to customers around the world. The company also specializes in CFD models, which simulate fluid flow by generating a virtual replication of real-world geometry and operating inputs. The company designs flow corrective devices, such as turning vanes, ash screens, static mixers and its patented GSG Graduated Straightening Grid. The company’s SCR systems utilize urea or ammonia as the SCR catalyst reagent to achieve NOx reductions of up to 85% from industrial combustion sources. ULTRA Technology: The company’s ULTRA process is designed to convert urea to ammonia safely and economically for use as a reagent in the SCR process for NOx reduction. Recent local objections in the ammonia permitting process have raised concerns regarding the safety of ammonia shipment and storage in quantities sufficient to supply SCR. In addition, the Department of Homeland Security has characterized anhydrous ammonia as a Toxic Inhalation Hazard commodity. The safe conversion of urea to ammonia just prior to injection into the flue gas duct is particularly important near densely populated cities, major waterways, harbors or islands, or where the storage or transport of anhydrous or aqueous ammonia is a safety concern. UDI Urea Direct Injection systems utilize direct injection of urea reagent without the need for an ammonia injection grid. SNCR Systems: The company’s NOxOUT and HERT SNCR processes use urea or ammonia reagent injected into a variety of combustion furnaces to reduce NOx by up to 25% - 50% for utilities and by potentially significantly greater amounts for industrial units. I-NOx Systems: The company’s I-NOx systems can include burner modifications and SNCR components combined with SCR technology. Together, these systems provide up to 90% NOx reduction at significantly lower capital and operating costs than conventional SCR systems while providing greater operational flexibility to plant operators. ESP Processes and Services: ESP technologies for particulate control include ESP products and services including ESP Inspection Services, Performance Modeling, and Performance and Efficiency Upgrades, along with complete turnkey capability for ESP retrofits. FGC systems include treatment using sulfur trioxide (SO3) and ammonia-based systems to improve the performance of ESPs by modifying the properties of fly ash particles. The company’s ULTRA technology can provide the ammonia system feed requirements for FGC applications as a safe alternative to ammonia reagent-based systems. FGC systems offer a lower capital cost approach to improving ash particulate capture versus the alternative of installing larger ESPs or utilizing fabric filter technology to meet targeted emissions and opacity limits. Fuel Tech’s particulate control technologies have been installed on more than 125 units worldwide. APC Competition ESP retrofit competitors include B&W and Southern Environmental. FGC competition includes Wahlco, Inc. and Chemithon, Inc. FUEL CHEM Product and Markets The FUEL CHEM technology segment revolves around the unique application of specialty chemicals to improve the efficiency, reliability and environmental status of plants operating in the electric utility, industrial, pulp and paper, waste-to-energy, university and district heating markets. FUEL CHEM programs are in place on combustion units in North America, Mexico and Europe, treating a wide variety of solid and liquid fuels, including coal, heavy oil, black liquor, biomass and municipal waste. Central to the FUEL CHEM approach is the introduction of chemical reagents, such as magnesium hydroxide, to combustion units via in-body fuel application (pre-combustion) or via direct injection (post-combustion) utilizing the company’s proprietary TIFI technology. By attacking performance-hindering problems, such as slagging, fouling and corrosion, as well as the formation of sulfur trioxide (SO3), and ammonium bisulfate, the company’s programs offer numerous operational, financial and environmental benefits to owners of boilers, furnaces and other combustion units. A key market factor for this product line is the continued use of coal for global electricity production. In 2022, coal accounted for approximately 20% of all U.S. electricity generation and roughly 39% of global electricity generation. Major coal consumers include the U.S., China and India. Additional market dynamics include a growing, worldwide utilization of biomass for both steam and electrical production, and the continued use of heavy fuel oil for power generation. The principal markets for this product line are electric power plants burning coals with slag-forming constituents, such as sodium, iron and high levels of sulfur. Sodium is typically found in the Powder River Basin coals of Wyoming and Montana. Iron is typically found in coals produced in the Illinois Basin region. High sulfur content is typical of Illinois Basin coals and certain Appalachian coals. High sulfur content can give rise to unacceptable levels of SO3 formation especially in plants with SCR systems and flue gas desulphurization units (scrubbers). The Mexican government is utilizing more indigenous fuel sources for power generation because the international market for high sulfur fuel oil (what Mexico produces) has been significantly reduced with the adoption of the new International Maritime Organization restrictions. Fuel Tech’s TIFI systems can help with SO3 mitigation at these oil-fired power generation units. The combination of slagging coals and SO3-related issues, such as blue plume formation, air pre-heater fouling and corrosion, SCR fouling and the proclivity to suppress certain mercury removal processes, represents an attractive market potential for Fuel Tech. Competition Competition for the company’s FUEL CHEM product line includes chemicals sold by specialty chemical companies, such as Imerys, Environmental Energy Services, Inc., and SUEZ Water Technologies. Intellectual Property The majority of the company’s products are protected by U.S. and non-U.S. patents. The company owns 63 granted patents worldwide including 25 US patents and 38 non-US patents. The company has 7 patent applications pending: including 3 in the U.S. and 4 in non-U.S. jurisdictions. These patents and applications cover some 31 inventions, 14 associated with its NOx reduction business, 12 associated with the FUEL CHEM business, and five associated with water treatment. The company’s granted patents have expiration dates ranging from March of 2024 to October of 2040. Research and Development The company’s research and development expenses were $895 for the year ended December 31, 2022. History Fuel Tech, Inc. was incorporated in 1987 under the laws of the Netherlands Antilles.