Advanced Emissions Solutions, Inc. Announces 15-Year Activated Carbon Supply Agreement with Cabot Corporation

Agreement expected to increase manufacturing utilization, diversify activated carbon product mix, provide 30-40% incremental revenue growth and increase earnings and cash flow profile

GREENWOOD VILLAGE, Colo., Sept. 30, 2020 (GLOBE NEWSWIRE) -- Advanced Emissions Solutions, Inc. (NASDAQ: ADES) ("ADES"), together with its subsidiary companies held by ADA Carbon Solutions, LLC (collectively the “Company”), today announced it has entered into a 15-year master supply agreement (the "Agreement") with Cabot Norit America, Inc., a subsidiary of Cabot Corporation ("Cabot"), to supply Cabot with lignite activated carbon products, including powder activated carbon ("PAC") and granular activated carbon ("GAC").

"Today’s announcement is an important step toward the creation of the Company’s post-Refined Coal future," said Greg Marken, Interim CEO of ADES. "The Agreement with Cabot allows us to secure material incremental volume and better capture the low-cost manufacturing capabilities of our Red River plant. It also allows us to expand our product portfolio beyond our current suite of products and capabilities, and provides entry into new and diverse markets. The completion of this Agreement is a testament to the premier quality of the activated carbon assets we possess, and it serves as a high-quality example of promising opportunities we have to grow our activated carbon business across a diverse set of applications. We are very excited to partner with Cabot, a global leader in specialty chemicals and performance materials, and look forward to building an even stronger brand across the activated carbon market."

"We have worked closely with ADES to demonstrate production of the product portfolio necessary to accomplish this deal and benefit from the improved manufacturing capabilities for our respective companies," said Imtiaz Kathawalla, VP&GM, Purification Solutions, Cabot Corporation. "We look forward to continuing to provide our customers with the same high quality products that they are accustomed to receiving from Cabot."

Agreement Summary:

The Agreement provides that the Company will supply Cabot with activated carbon products, including PAC and GAC, used for diverse end markets including the treatment of water, air, food and beverages, pharmaceuticals and other liquids and gases. The Company will supply all of Cabot’s lignite-based activated carbon products in North America, subject to certain limitations. Concurrently, the Company will take over Cabot’s lignite mine (the “Mine”) that currently supplies Cabot’s Marshall, Texas facility. The Company expects to immediately commence reclamation activities related to this Mine, expecting that 70% of the reclamation costs will be completed in the first 24 months, and Cabot will share in the costs to complete these activities.