Calgon Carbon Corporation CCC has expressed its disappointment over the U.S. Supreme Court’s ruling that overturned the Environmental Protection Agency’s (“EPA”) MATS (Mercury and Air Toxics Standards) rule.
The MATS rule would have stood for the first national standard for the reduction of power plant emissions of mercury and other air toxins. According to the Supreme Court, the EPA did not consider the costs (including cost of compliance) of the new regulation.
However, Calgon Carbon continues to anticipate that its activated carbon mercury removal market revenues will increase by 50% in 2015. Moreover, the company expects the powdered activated carbon required per year to control power plant mercury emissions created by certain state and Canadian regulations, in the range of 120–160 million pounds. To address this demand, after 8 years of research and roughly 75 full-scale trials, Calgon Carbon has offered three generations of carbon for coal-fired power plants, under the brand name, FLUEPAC activated carbon.
The Pennsylvania-based pollution control company recorded revenues of $135.7 million in the first quarter of 2015, up 3.1% year over year, driven by the sale of FLUEPAC powdered activated carbon for mercury removal from the flue gas of coal-fired power plants.
Going forward, Calgon Carbon feels that the growing demand for FLUEPAC carbon can help it capture 30% of the mercury control market, thus strengthening its position as a leader in this key market. The company is also focusing on other short- and long-term revenue growth drivers.
Calgon Carbon strives to expand its outsourced activated carbon distribution capacities outside the U.S. The company is also increasing its capacity through various expansion projects and turning North American municipal water customers to activated carbon and reactivation solutions. Calgon Carbon’s foray into the emerging ballast water treatment equipment retrofit market, along with increased market penetration into new regions like Latin America and India, and business acquisitions will help sustain its growth momentum.
Calgon Carbon currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the pollution control space include Advanced Emissions Solutions, Inc. ADES, LiqTech International, Inc. LIQT and Perma-Fix Environmental Services Inc. PESI. While Advanced Emissions Solutions sports a Zacks Rank #1 (Strong Buy), both LiqTech International and Perma-Fix Environmental Services carry a Zacks Rank #2 (Buy).
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