Fuel Tech books $2.8m in air pollution control contracts
Fuel Tech (NASDAQ: FTEK) has announced multiple air pollution control (APC) contracts totalling approximately $2.8 million across utility and industrial customers in the United States and internationally. The awards span three distinct technology lines: urea reagent delivery systems, electrostatic precipitator modelling, and a selective non-catalytic reduction demonstration on a waste incinerator.
The largest single scope is a urea reagent delivery system for a new US utility customer expanding its power plant with natural gas-fired turbines and reciprocating engines. The system is designed to feed Selective Catalytic Reduction (SCR) equipment, a post-combustion process that converts nitrogen oxide (NOx) emissions into harmless nitrogen and water vapour. Fuel Tech says the urea-based approach removes the safety hazards associated with transporting and storing ammonia. Engineering work has started and equipment delivery is targeted for the third quarter of 2027.
The contracts
Two separate awards cover electrostatic precipitator (ESP) performance modelling for new domestic and international customers. ESPs are devices that remove fine particulate matter from flue gas using electrostatic charge; Fuel Tech's Numerical Electrostatic Precipitation (NEP) model identifies upgrade options to help operators meet tightening particulate regulations. Both modelling engagements are expected to wrap up in the fourth quarter of 2026.
A fourth contract, secured from a repeat domestic customer, involves a demonstration of Selective Non-Catalytic Reduction (SNCR) technology on a waste incinerator unit. Unlike SCR, which uses a catalyst, SNCR injects reagent directly into the combustion chamber at high temperatures to reduce NOx. The demonstration is scheduled for the third quarter of 2026 and, if successful, could generate permanent equipment orders before year-end.
Ramesh Nuggihalli, president and chief executive, said the awards bring the company to $15 million in announced bookings year-to-date against an effective backlog of $20 million, and that further APC contracts are likely to be awarded within 60 to 90 days.
Market context
Fuel Tech operates in the mature but non-trivial market for industrial emissions compliance equipment, a segment driven less by climate ambition than by air-quality regulation and permitting requirements. NOx and particulate controls are mandated by regional air authorities and, in the United States, by Environmental Protection Agency standards under the Clean Air Act; tightening rules at state and federal level periodically trigger upgrade cycles at power plants, incinerators and industrial combustion units.
The company's technology set sits at the intersection of compliance services and capital equipment, giving it both shorter-cycle modelling revenues and longer-cycle hardware orders. That mix is reflected in this announcement: two fast-closing modelling contracts alongside a multi-quarter equipment delivery. At a $20 million backlog, Fuel Tech remains a small-cap operator; its addressable market is largely determined by the pace at which regulators tighten emission limits and the age of installed utility and industrial combustion fleets.
The waste-incineration demonstration is a reminder that NOx control is not limited to fossil-fuel power generation. As municipalities seek alternatives to landfill and regulators scrutinise waste-to-energy plant emissions, SNCR and SCR retrofit opportunities are opening across the sector. The international ESP modelling award, though modest in value, suggests demand for compliance modelling services is extending beyond the US market.
Investors tracking Fuel Tech will look for confirmation of the SNCR permanent equipment order in the fourth quarter of 2026 and an update on the additional APC contracts the company says are in its near-term pipeline.