WORTHINGTON, OH--(Marketwired - August 21, 2014) - Midwest Energy Emissions Corp. (OTCQB: MEEC), a market leader in mercury emissions control systems for the coal-fired power industry, announced today that it reported second quarter 2014 revenues of $879,000, up 94% year over year, with deferred revenues of $2.7 million, up 150% over the first quarter of 2014.
President and CEO, R. Alan Kelley commented, "This was a milestone quarter for the Company by delivering the largest revenue quarter in our history as we executed to plan on equipment delivery and testing at newly contracted customer sites. This is just the start of what we expect to be further significant growth in revenues going forward."
During the second quarter, the Company announced the delivery of its newly-designed proprietary feeder system, and as well, announced that our first customer has extended its contract with the Company for an additional three years. This contract extension serves as a very important development for us. We have highly valued our relationship with this customer dating back to 2011 when we first installed our technology to manage the plant's compliance with its state mercury emissions regulations. Over these three years of servicing this initial customer, the patented Sorbent Enhancement Additive (SEA) solution consistently and accurately performed and allowed them to meet the state-mandated emission restrictions. The three-year contract extension transitions the customer from a state mandate to MATS, a major federal regulation, which demonstrates confidence from a large utility customer in our commitment to execution. After a robust first half of 2014 for bookings, we now have 13 coal-fired power generating units under contract for MATS, and many more opportunities in our sales pipeline.
Kelley continued, "With the announcement last week that we were successful in solving our capital needs with the $10 million investment from a large institutional investor who owns coal-fired power plants, our team is expanding and preparing to win significant market share in this exciting mercury emission capture market that is just now developing as compliance with MATS begins in April 2015. Our leading edge approach to mercury capture can rapidly scale in the U.S., and we have the financial resources to expand this patented approach to other international markets such as China, where we see major opportunity in the coming years."
Kelley concluded, "In the second quarter, we announced a new plan to deliver shareholders a quarterly address from our management team, the first of which we expect to deliver at our annual shareholder meeting this fall; the date of the annual shareholder meeting will be announced in the coming weeks. We are very excited about the developments here at ME2C this summer, and look forward to an even better second half of the year."
About Midwest Energy Emissions Corp: Midwest Energy Emissions Corp. develops and employs patented and proprietary technologies to remove mercury from coal-fired power plant emissions. The U.S. Environmental Protection Agency's (EPA) Mercury and Air Toxic Standards (MATS) rule requires that all coal- and oil-fired power plants in the U.S., larger than 25 mega-watts, must remove roughly 90% of mercury from their emissions starting April 16, 2015. Midwest employs patented technology that has been shown to achieve mercury removal levels compliant with MATS at a significantly lower cost and with less operational impact than currently used methods, while preserving the marketability of fly-ash for beneficial use, a roughly $450mm industry annually. Management estimates that mercury emissions control is a recurring $2-$3 billion opportunity in the U.S. annually, with further international growth expected as countries adopt mercury emissions regulations under the United Nations Minimata Convention on Mercury. Learn more at: www.midwestemissions.com.
Safe Harbor Statement
With the exception of historical information contained in this press release, content herein may contain "forward looking statements" that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. Matters that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the gain or loss of a major customer, additional or new EPA regulations affecting coal-burning utilities, disruption in supply of materials, a significant change in general economic conditions in any of the regions where our customer utilities might experience significant changes in electric demand, a significant disruption in the supply of coal to our customer units, the loss of key management personnel, failure to obtain adequate working capital to execute the business plan and any major litigation regarding the Company. In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.