Arq Announces First Supply Contract for its Strategic Granular Activated Carbon (GAC) Facility
09 May 2024 - 6:30AM
Arq, Inc. (NASDAQ: ARQ) (the "Company" or "Arq"), a producer of
activated carbon and other environmentally efficient carbon
products for use in purification and sustainable materials, today
announced the execution of its first sales contract for delivery of
GAC produced from its unique purified bituminous coal waste derived
feedstock at its strategic Red River facility.
Under the terms of the agreement, the new Arq
customer, a North American solutions provider of water and
wastewater treatment and PFAS capture technologies, will purchase a
forecasted 5 million pounds of GAC product in 2025, reflecting
approximately 20% of the facility's initial expanded nameplate
capacity of 25 million pounds per year.
Bob Rasmus, CEO of Arq commented, "Today's
announcement reflects a critical milestone in the ongoing strategic
transformation of Arq. Our first GAC supply contract represents
third party validation of our strategy and our GAC solutions. The
contract demonstrates follow through on our commitment to
stakeholders and the hard work of our entire team. The contract
pricing is attractive, and represents a multiple of our average PAC
pricing. This amplifies our confidence in our strategy while
further de-risking the strategic development of Red River. We now
have approximately 20% of our nameplate Red River capacity now
contracted nearly 9 months ahead of commissioning. We remain in
advanced levels of dialogue with a range of potential
counterparties. Based on those discussions, we remain in an
enviable and exciting position to contract the remainder of our
capacity prior to initiation of production at attractive
rates."
Garrett Chandler, VP Sales of Arq added,
"Securing this strategic partner as our first GAC customer is an
exciting development as we aim to deliver successfully into a
pipeline of sales growth. Our sales team has done an impressive job
in helping to achieve today's milestone, and we are even more
confident in our ability to contract the remaining capacity for our
new GAC products ahead of final commissioning in Q4 2024. The EPA's
recent announcement regarding definitive PFAS regulations only
amplifies the importance of GAC products in the water market, and
the significant higher demand we expect for our solutions over the
near and long-term."
Joe Wong, CTO of Arq concluded, "This contract
win is a significant step forward for us within the industry. We
are well recognized and respected as leaders in the PAC market, and
today's achievement further evidences the successful expansion of
our product development and manufacturing prowess in execution of
Arq's strategic transformation to an environmental technology
company. This is an important and exciting validation of our
product efficacy, and we look forward to driving continued
innovation of valuable and compliance-enabling products and
solutions for our customers."
About Arq
Arq (NASDAQ: ARQ) is a diversified,
environmental technology company with products that enable a
cleaner and safer planet while actively reducing our environmental
impact. As the only vertically integrated producer of activated
carbon products in North America, we deliver a reliable
domestic supply of innovative, hard-to-source, high-demand
products. We apply our extensive expertise to develop
groundbreaking solutions to remove harmful chemicals and pollutants
from water, land and air. Learn more at: www.arq.com.
Caution on Forward-Looking
Statements
This press release 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. When used in this press
release, the words “can,” “will,” "may," “intends,” “expects,”
"continuing," “believes,” similar expressions and any other
statements that are not historical facts are intended to identify
those assertions as forward-looking statements. All statements that
address activities, events or developments that the Company
intends, expects or believes may occur in the future are
forward-looking statements. These forward-looking statements
include, but are not limited to, statements or expectations
regarding: business strategy, expectations about future demand and
pricing for our PAC and GAC products and our ability to enter into
new markets, the estimated costs and timing associated with
potential capital improvements at our facilities, potential
production outputs thereafter, expected market supply of GAC
products and the cost savings and environmental benefits of our GAC
products, and the timing and scope of future regulatory
developments and the related impact of such on the demand for our
products. These forward-looking statements involve risks 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, timing of new and
pending regulations and any legal challenges to or extensions of
compliance dates of them; the U.S. government’s failure to
promulgate regulations that benefit our business; changes in laws
and regulations, accounting rules, prices, economic conditions and
market demand; impact of competition; availability, cost of and
demand for alternative energy sources and other technologies;
technical, start up and operational difficulties; competition
within the industries in which the Company operates; our inability
to commercialize our products on favorable terms; our inability to
effectively and efficiently commercialize new products; changes in
construction costs or availability of construction materials; our
inability to effectively manage construction and startup of the Red
River GAC Facility or Corbin Facility; our inability to obtain
required financing or financing on terms that are favorable to us;
our inability to ramp up our operations to effectively address
recent and expected growth in our business; loss of key personnel;
ongoing effects of the inflation and macroeconomic uncertainty,
including from the ongoing pandemic and armed conflicts around the
world, and such uncertainty's effect on market demand and input
costs; availability of materials and equipment for our business;
intellectual property infringement claims from third parties;
pending litigation; as well as other factors relating to our
business strategy, goals and expectations concerning the Arq
Acquisition (including future operations, future performance or
results); our ability to maintain relationships with customers,
suppliers and others with whom it does business and meet supply
requirements, or its results of operations and business generally;
risks related to diverting management's attention from our ongoing
business operations; costs related to the Arq Acquisition;
opportunities for additional sales of our AC products and
end-market diversification; the timing and scope of new and pending
regulations and any legal challenges to or extensions of compliance
dates of them; our ability to meet customer supply requirements;
the rate of coal-fired power generation in the U.S., the timing and
cost of capital expenditure, as well as other factors relating to
our business, as described in our filings with the SEC, with
particular emphasis on the risk factor disclosures contained in
those filings. You are cautioned not to place undue reliance on the
forward-looking statements and to consult filings we have made and
will make with the SEC for additional discussion concerning risks
and uncertainties that may apply to our business and the ownership
of our securities. In addition to causing our actual results to
differ, the factors listed above may cause our intentions to change
from those statements of intention set forth in this press release.
Such changes in our intentions may also cause our results to
differ. We may change our intentions, at any time and without
notice, based upon changes in such factors, our assumptions, or
otherwise. The forward-looking statements speak only as to the date
of this press release.
Source: Arq, Inc.
Investor Contact:Anthony Nathan, Arq Marc
Silverberg, ICRinvestors@arq.com
Arq (NASDAQ:ARQ)
Historical Stock Chart
From Aug 2024 to Oct 2024
Arq (NASDAQ:ARQ)
Historical Stock Chart
From Oct 2023 to Oct 2024