Fuel Tech Awarded Air Pollution Control Orders in China Totaling $3.9M

Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advanced engineering solutions for combustion and emissions control systems for utility and industrial applications, today announced receipt of multiple air pollution control (APC) orders in China totaling $3.9 million.

Three orders were received for ULTRA™ projects in China. The first order, placed by an existing customer and one of the largest five power producers in China, is an award of ULTRA systems for two large-sized coal-fired units that are being retrofitted with nitrogen oxide (NO_x) reduction technology. The second order, placed by a new customer, is an award of ULTRA systems for two large-sized coal-fired units. The third order, placed by a repeat customer, is an award of an ULTRA system for one medium-sized coal-fired unit being retrofitted with NO_x control technology. Fuel Tech’s ULTRA process provides for the safe and cost-effective on-site conversion of urea to ammonia for use as a reagent in the selective catalytic reduction of NO_x, eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Equipment deliveries for two projects are expected to occur in the third quarter of this year with the equipment for the remaining project scheduled for delivery in the fourth quarter.

A fourth order, placed by an existing customer in China, is an award of combustion modifications and an Over-Fire Air (OFA) system for a small industrial unit. Combustion modifications, typically the first NO_x reduction efforts employed, can improve efficiency and reduce the formation of NO_x by altering the combustion process. Fuel Tech’s OFA systems stage combustion for enhanced NO_x reduction. Equipment delivery for this project is expected to occur in the third quarter of this year.

Douglas G. Bailey, Chairman, President and Chief Executive Officer, commented, “We are pleased to receive these three ULTRA orders for five coal-fired units from both new and repeat customers. There is particularly strong interest in China in our ULTRA product line, as evidenced by the award of 13 ULTRA systems so far this year. As more SCR systems are installed to comply with the NO_x reduction requirements, we will see this market opportunity expand as our proprietary ULTRA technology continues to demonstrate its ability to generate ammonia in a safe, cost-effective manner. We continue to see increased discussions with power plant and industrial operators in the Pacific Rim for our NO_x control technologies. Fuel Tech’s unique ability to combine technologies ranging from Low NO_x Burners, OFA, and hybrid SNCR/SCR systems affords us a competitive position to reduce NO_x emissions on power plant units of all sizes.”

About Fuel Tech

Fuel Tech is a leading technology company engaged in the worldwide development, commercialization and application of state-of-the-art proprietary technologies for air pollution control, process optimization, and advanced engineering services. These technologies enable customers to produce both energy and processed materials in a cost-effective and environmentally sustainable manner.

The Company’s nitrogen oxide (NO_x) reduction technologies include advanced combustion modification techniques - such as Low NO_x Burners and Over-Fire Air systems - and post-combustion NO_x control approaches, including NO_xOUT^® and HERT™ SNCR systems as well as systems that incorporate ASCR™ (Advanced Selective Catalytic Reduction), NO_xOUT CASCADE^®, ULTRA™ and NOxOUT-SCR® processes. These technologies have established Fuel Tech as a leader in NO_x reduction, with installations on over 700 units worldwide, where coal, fuel oil, natural gas, municipal waste, biomass and other fuels are utilized.

The Company’s FUEL CHEM^® technology revolves around the unique application of chemicals to improve the efficiency, reliability, fuel flexibility and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and operational issues associated with sulfur trioxide, ammonium bisulfate, particulate matter (PM_2.5), carbon dioxide and NO_x. The Company has experience with this technology, in the form of a customizable FUEL CHEM program, on over 110 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste.

Fuel Tech also provides a range of combustion optimization services, including airflow testing, coal flow testing and boiler tuning, as well as services to help optimize selective catalytic reduction system performance, including catalyst management services and ammonia injection grid tuning. In addition, flow corrective devices and physical and computational modeling services are available to optimize flue gas distribution and mixing in both power plant and industrial applications.

Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling 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 Fuel Tech to provide practical solutions to some of our customers’ most challenging problems. For more information, visit Fuel Tech’s web site at www.ftek.com.

This press release may contain statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Fuel Tech files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.