Fuel-Tech N.V. Announces Four FUEL CHEM Orders, Including Two Demonstrations

Standford, CT - Fuel-Tech N.V., a leader in advanced engineering solutions for the optimization of combustion systems in utility and industrial applications, today announced four FUEL CHEM orders for the Company's proprietary Targeted In-Furnace Injection (TIFI) technology. Two of the orders, placed by a major, targeted utility, represent demonstrations on Powder River Basin (PRB) coal-fired units of approximately 600 and 350 megawatts at two Midwestern plants. A third order was secured on a very large PRB coal-fired unit from an existing customer in the Southeastern U.S. Overseas, an order was received from an Italian utility on a 320 megawatts coal-fired unit, representing the second such installation for this customer. The Company also reported that one TIFI installation has been temporarily decommissioned on a coal-fired unit that had previously used the technology on an intermittent basis.

Steven C. Argabright, President and Chief Operating Officer, commented, "As evidenced by this announcement, Fuel Tech continues to make major strides in penetrating the utility market with its unique slag inhibiting technology. Of particular note are the Midwestern demonstrations, which represent the first instance in which a prospective customer has decided to test our technology simultaneously at two separate locations."

Mr. Argabright continued, "We are also gratified with the repeat business from highly satisfied customers, both in the U.S. and abroad. In Italy, our FUEL CHEM product is enabling our customer to broaden its search for lower quality and, therefore, lower cost coals for its combustion units, generating compelling economic benefits. To prepare ourselves for potential growth in the European market, we recently added an experienced sales professional in Italy. In a related matter, we are pleased to announce that, as part of an ongoing program by the Italian government to promote advanced technology development, Fuel Tech has been awarded a grant of up to $80,000 to help fund development of advanced interactive controls for optimal chemical injection, designed to maximize both economic and thermal performance benefits for FUEL CHEM installations."

Mr. Argabright concluded, "As to the intermittent-feed TIFI installation that has been temporarily decommissioned, the unit did not require continued use of the process at this time due to reduced capacity requirements, which inherently reduce slag formation. Should the need arise, the system could be reactivated on short notice. Revenue from this unit has not been material in 2005."

SOURCE: Fuel-Tech N.V.