ADA-ES delays project financing until market conditions improve

By Stephanie N. Rotondo

Portland, Ore., Jan. 13 - ADA-ES Inc. said Tuesday it is delaying debt financing for its activated coal plant until market conditions improve, possibly in the third quarter of 2009.

The company made the announcement during a presentation at the Pritchard Capital Partners "Energize 2009" conference in San Francisco. ADA said Credit Suisse is coordinating the placement.

Though the debt raising for the approximately $350 million project is delayed, ADA and its joint venture partner, Energy Capital Partners, will continue to fund the construction in an effort to keep on schedule. The parties have contributed about $51 million in equity financing to date, according to the presentation.

ADA has plans to develop the largest activated coal plants in North America. The three- to five-year project, already under construction, will include a plant at Red River, La. Startup for that plant is expected in 2010.

The project debt will be based on $200 to $400 million of "take or pay" contracts for activated coal.

The company also said it has filed permits for another plant in Bismarck, N.D.

ADA-ES is a Littleton, Colo.-based leader in clean coal technology and the associated specialty chemicals.

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