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Article Excerpt
OPERATOR: Good day everyone, and welcome to the ADA ES joint venture conference call. At this time I would like to inform you that this conference is being recorded. (Operator Instructions)
This conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a safe harbor for such statements in certain circumstances. Forward-looking statements often address our expected future business and financial performance, and often contain words such as -- expect, anticipate, intend, plan, believe, seek, may, will, should, would, could, potential, continue, ongoing, similar expressions, and variations or negatives of these words.
Such forward-looking statements included in this release include statements regarding expected cost, financing forth, and timing of commencement of operations at the planned AC facilities. These statements are based on current expectations, estimates, projections, beliefs, and assumptions of our Management. Such statements involve significant risk and uncertainties.
Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to changes in the cost and timing of construction of the planned AC facilities, failure to satisfy funding or other conditions set forth in the joint venture and Securities Purchase Agreements, inability to sign or close acceptable definitive agreements for financing, coal supply, or offtake agreements with respect to the facility in a timely manner, availability of raw materials and treatment and storage facilities, changes in laws or regulations, prices, economic conditions, and market demand, impact of competition and litigation, operational difficulties, availability of skilled personnel, and other factors discussed in greater detail in our filings with the Securities and Exchange Commission, including our most recent annual report on form 10-K and our most recent periodic reports on Forms 10-Q and 8-K.
You're cautioned not to place undue reliance on our forward-looking statements, and to consult filings we make with the SEC for additional risk and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.
I will now turn the conference over to Mr. Michael Durham. Please go ahead, sir.
MIKE DURHAM, PRESIDENT AND CEO, ADA-ES: Good morning. The purpose of this conference call is to give our investors an opportunity to learn more about our newly announced joint venture with Energy Capital I, LP, and its affiliated funds we'll refer to as ECP. This is a very significant milestone for ADA, and we're excited about what this relationship means to the Company and to our shareholders.
I'm joined today with Mark McKinnies, CFO of ADA; and Pete Labbat, Partner with ECP. I will provide a brief background on our project and the fundamentals of the transaction with ECP. Pete Labbat will then discuss ECP and give you an idea of the history of the Company, their experience and expertise in the energy field, and their perspective on the opportunity in the mercury control market. We will then open up the call for your questions.
As most of our investors know, ADA has been pursuing an aggressive business strategy to be the market leader in the sales of engineering services, equipment, and activated carbon to reduce mercury emissions from coal-fired power plants in North America. A key part of this strategy was the decision to go into the production of activated carbon to sell to our power generating customers for their mercury control needs.
With the federal Mercury control regulation, activated carbon could represent a potential sustainable market of up to $1 billion per year. To play a major leading role in this, we announced that we were permitting six production lines with a combined capacity to produce up to one billion pounds of activated carbon per year.
We've been making great strides in putting this plan into action. We recognized that even though the timing of the federal mercury rule was still undefined, there were significant new markets for AC based on strict regulations in now over 20 states and Canadian provinces. Therefore, we began activities on the first production line to produce 125 million to 175 million pounds of AC for this market.
In the past six months we have achieved significant milestones that demonstrate to both our customers and our investors the viability of this project. The key events include -- we have received our construction and operating permits for up to 350 million pounds of AC at the site in northwest Louisiana; we signed our first long-term AC contract with Southern Company with a value of 35 million; we purchased the building site in Louisiana; we signed a contract with our EPC contractor, BE&K, a KBR Company,...
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