STAMFORD, CTFuel-Tech N.V. has been awarded six contracts, worth over $2 million, for its nitrogen oxide (NOx) reduction technologies in Europe and the United States.
The first five orders call for the installation of the company’s NOxOUT SNCR process on municipal solid waste incinerator units in Europe, three in France and two in Italy. The sixth contract is for the installation of NOxOUT SNCR on two new, 250 MW(e) circulating fluidized bed boilers designed to be the cleanest units of this type ever installed.
“We have focused on strengthening our presence in the industrial NOx reduction market, both in the U.S. and abroad, and are encouraged by our results,” said Steven Argabright, Fuel Tech president and COO. “We believe that the French and Italian contracts, coupled with our other European activities, reflect our ability to continue to provide our international customers with the most cost-effective and efficient NOx reduction technologies. We are further gratified by being selected to provide our state-of-the-art technology for installation on the cleanest circulating fluidized bed boilers ever built.”
Fuel Tech also announced plans to restructure its European operations in an effort to consolidate its business and enhance profitability by concentrating its resources in its Italian company, Fuel Tech Srl and shutting down Fuel Tech GmbH in Germany. Fuel Tech GmbH’s NOxOUT chemical business is being sold to a new entity in Germany that Fuel Tech will maintain a 49 percent ownership interest in. The selling price is dependent on future results of the chemical business, but will not be less than 1,250,000 Deutschemarks (approximately $600,000), paid out over three years. The gain on this transaction will be recognized when proceeds from the sale are received. As a result of the closure of Fuel Tech GmbH, Fuel Tech will take a one-time, non-recurring charge of $1.3 million, or less than $0.07 per diluted share in the 2nd Quarter.
Approximately $1 million of this charge is non-cash, and reflects the recognition of cumulative foreign currency translation losses as a result of the shutdown of Fuel Tech GmbH.
“We are pleased to announce plans for the restructuring of our European operations and strongly believe that the consolidation of our business will allow us to achieve our strategic growth objectives and significantly increase profitability in Europe from the onset,” said Argabright. “Going forward, we feel that we are well positioned to win a meaningful share of the growing European NOx reduction market, and anticipate a greater number of contracts over the next five years as European Union deadlines for NOx reduction requirements draw near.”