In consideration for certain ADA-ES development work and the exclusive license to Arch, ADA-ES will receive an upfront payment of $2m and royalty payments that can amount to as much as $1 per ton of coal sold by Arch, depending upon the implementation of the technology and Arch’s future sales of the resulting enhanced coal product. Arch currently produces more than 100 million tons of PRB coal per year.

John Eaves, president and chief operating officer of Arch, said: “As part of our commitment to clean energy, we are pleased to provide this additional investment in ADA, a leader in developing clean coal technology. We believe helping finance advanced technologies developed by ADA will enhance the environmental performance of our coals.”

Mike Durham, president and CEO of ADA-ES, said: “This new technology will be complementary to our other innovative technologies such as CyClean, FGC, and different activated carbons that provide us with the tools to help our power generating customers to meet the challenges of existing and pending emissions control regulations.”