Advanced Emissions Solutions Signs Contract For Construction Of Granular Activated Carbon Expansion At Red River Plant With Wieland
Portfolio Pulse from Benzinga Newsdesk
Advanced Emissions Solutions, Inc. (ADES) has signed a contract with Wieland Davco Corporation for the construction of a Granular Activated Carbon (GAC) facility at its Red River plant in Louisiana. The project, expected to be mechanically complete by Q4 2024, has seen a cost increase of about 20% due to inflation and timing issues, with total costs estimated between $45-50 million. ADES plans to fund the increase with existing capital, 2024 cashflow, and cost reductions. The company's Corbin facility in Kentucky is on track, with commissioning starting in March 2024. ADES anticipates securing sales contracts for the GAC market ahead of the project's completion.
January 24, 2024 | 9:24 pm
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ADES has contracted Wieland for a GAC facility expansion, with increased costs covered by existing capital and anticipated cashflow. The Corbin facility is on budget, with commissioning in March 2024, and sales contracts for the GAC market are expected soon.
The news of ADES's expansion and partnership with Wieland, along with the on-track progress of the Corbin facility, is positive, indicating growth and potential for new revenue streams. The company's confidence in funding the cost increase without financial strain is also a positive signal to investors. However, the impact is moderated by the fact that the completion is still some time away and the market will need to see the execution of the project and the securing of sales contracts to fully realize the benefits.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100