Calgon Carbon Secures 10-Year Drinking Water Contract

Zacks

Calgon Carbon Corporation (CCC) has inked a 10-year agreement with Palmdale Water District involving reactivation services for treating the District’s drinking water. The total value of the contract will depend on the amount of carbon that will be used annually for water treatment.

The District uses granular activated carbon (GAC) which clears organic compounds from the water, decreases the formation of byproducts created by additional chlorine and also abides by the U.S. Environmental Protection Agency’s (EPA) Stage 2 Disinfectants and Disinfection Byproducts Rule for a maximum permissible level of disinfection byproducts (DBPs) in drinking water.

The District, which has been using GAC, will now avail Calgon Carbon’s high performance Filtrasorb400 GAC which will be taken to Gila Bend, AZ for custom reactivation. It also hopes to continue to save through this new technology. The Filtrasorb400 GAC not only complies with both the U.S. EPA standards but is also economical.

The District significantly invested in extensive researching and testing of various GACs in 2009 to get the most efficient one out of the samples. In 2011, it came up with the best GAC which was sent for full-scale testing. However, the District ultimately contracted Calgon Carbon’s high performance Filtrasorb400 GAC in 2014 for its superior technology that ensures best quality drinking water with significant cost savings.

Calgon Carbon, which is one of the prominent pollution control companies along with CECO Environmental Corp. (CECE), saw higher sales and profit in the second quarter of 2014 (reported on Aug 8) as a decline in the equipment business was more than offset by gains across activated carbon and consumer units.

Calgon Carbon has a Zacks Rank #3 (Hold).

Other companies in the pollution control industry worth considering are PMFG, Inc. (PMFG) and Sharps Compliance Corp. (SMED), carrying a Zacks Rank #2 (Buy).

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