Fuel Tech, Inc., a leader in advanced engineering solutions for the optimization of combustion systems and emissions control in utility and industrial applications, announced that it has acquired Cleveland Roll Forming Environmental Division, Inc. (d/b/a PECO) and FGC Corporation (FGC) for total cash consideration of $7.25 million and $1.0 million, respectively, through stock purchase agreements with each of two companies. These acquisitions are expected to be immediately accretive to Fuel Tech.
PECO’s strength is its proven experience and know-how to provide custom retrofit solutions within an existing footprint of an Electrostatic Precipitator (ESP) to improve the efficiency, performance and longevity of the unit. PECO’s products and services include ESP inspection services, performance modeling, performance and efficiency upgrades (including high-voltage sectionalization and high frequency power equipment), purge air systems, and more. PECO has complete turnkey capability for ESP retrofits, and has installed more than 60 major rebuilds on units up to 700 MW.
FGC specializes in products and services for flue gas conditioning systems, which include treatment using sulfur trioxide (SO3) and ammonia (NH3) based conditioning. These systems improve the performance of ESPs by modifying the properties of the fly ash particle. They represent a far lower capital cost approach to improving ash particulate capture versus the alternative of installing larger ESPs or utilizing fabric filter technology to meet targeted opacity or particulate emission limits.
FGC designs and supplies systems using molten or dry sulfur, as well as ammonia-based systems. Control system upgrades and plant control interface equipment are both available, along with complete turnkey capability. FGC also performs complete system audits and system and control upgrades for flue gas conditioning systems of other OEMs. Since April 2008, Fuel Tech has held an exclusive license with FGC to sell flue gas conditioning systems incorporating its technology for utility applications in all geographies outside the US and Canada. As a result of this acquisition, Fuel Tech will now own the technology in lieu of future royalty payments.
With 25 and 20 years of experience respectively, PECO and FGC have grown to become leading providers of particulate control technology. Located in Westlake, Ohio, PECO-FGC generated 2013 revenues of approximately $10 million and operated profitably. As of December 31, 2013, the backlog of PECO-FGC was approximately $14 million. Its systems are installed on over 125 units burning a wide range of coals, along with units burning biomass, as well as those using Dry Sorbent Injection (DSI) for capturing mercury, HCl and SO2, which can impact particulate control.
The know-how and expertise in support of these particulate control technologies are interrelated, and these acquisitions provide Fuel Tech the unique ability to customize solutions for the complex and diverse needs of boiler operators seeking to improve the operation and performance of their existing particulate control systems to meet ever-increasing regulatory demands on a global basis.