Fuel Tech, Inc. · NASDAQ:FTEK
Fuel Tech — Investor Presentation (March 2025)
23 slides from Fuel Tech's investor presentation, March 2025
Slide 1: Technologies for Clean Air & Pure Water
Technologies for Clean Air & Pure Water Investor Presentation March 2025
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking statements” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect Fuel Tech’s current expectations
Slide 3: Fuel Tech: At a Glance
Fuel Tech: At a Glance 30+ YEAR HISTORY OF STRONG OPERATING THREE DISTINCT OPERATING SERVICE & ACCOUNTABILITY & FINANCIAL PROFILE PLATFORMS Expect $30 MM Air Pollution Control Total Revenues in 2025 ~20% Increase from 2024 FUEL CHEM® / Chemical Technologies $29.6MM cash & investments (12/31/2024) DG
Slide 4: Investment Thesis
Investment Thesis Established provider of solutions for emissions control and water treatment in industrial and utility applications. Global leader in nitrogen oxide (NOx) reduction technologies; also address SO3, ABS, PM2.5, and CO2. Capturing APC and FUEL CHEM ® growth opportunities; dynamic regul
Slide 5: Financial Highlights
Financial Highlights REVENUES SG&A ($ in MMs) ($ in MMs) $27.1 $26.9 $13.8 $25.1 $12.3 $12.8 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 CASH / EQUIVALENTS / INVESTMENTS BOOK VALUE PER SHARE ($ in MMs) $32.7 $33.4 $29.6 $1.47 $1.44 $1.37 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 5
Slide 6: Emissions Control: Diverse, Customizable, & Low Cap-ex Solutions
Emissions Control: Diverse, Customizable, & Low Cap-ex Solutions • SNCR: Selective Non–Catalytic Reduction • ULTRA®: Safe Ammonia Generation System • TIFI® Targeted In–Furnace Injection : • ASCR®: Advanced SCR: Combines LNB, OFA, • SCR: Selective Catalytic Reduction Chemical injection programs used
Slide 7: Computational Fluid Dynamics
Computational Fluid Dynamics Custom Process Modeling Used to Support Customer Applications • Proprietary Software with Strong IP Protection • Patented Technology • Provides an intuitive interaction between the Models and Design Engineers • Computational Fluid Dynamics (CFD) Model • Customized for ea
Slide 8: Our Operating Platforms
Our Operating Platforms Air Pollution Control (APC) Reduces NOX emissions and other pollutants from stationary combustion sources. FUEL CHEM® / Chemical Technologies Improves the efficiency, reliability and environmental status of power plants. Dissolved Gas Infusion (DGI®) Enhance process applicati
Slide 9: Air Pollution Control (APC) Segment
Air Pollution Control (APC) Segment REVENUES ($ in MMs) $13.5 $11.2 $10.6 Capital project / fixed price sale with turn-key capabilities ▪ Typical customers: fossil fuel-fired utilities and industrial boilers 25% - 90% emissions reduction across APC (NOx, SO3, and PM2.5 ) solutions portfolio FY 2022
Slide 10: Solutions that Deliver Significant Emission Reductions
Solutions that Deliver Significant Emission Reductions NOX PM2.5 ASCR® MOLTEN SULFUR ADVANCED SCR SYSTEM 80%+ Reduction in NOx • Injection of SO3 and ammonia into flue SCR SYSTEMS gas to improve operation of Up to 90% Electrostatic reduction in NOx Precipitators (ESPs) • Reduces fly ash resistivity
Slide 11: I-NOx: Integrated NOx Reduction System
I-NOx®: Integrated NOx Reduction System Can be applied as both a retrofit solution for existing units or new generating units. Combined Fuel Tech has installed technologies, capable systems or sub–systems of up to 90% on 1,300+ units worldwide NOX reduction High performance 20,000+ MWs of AIG with l
Slide 12: Flexible, Adaptable APC Solutions Reflect the Changing Domestic Fuel Source Landscape
Flexible, Adaptable APC Solutions Reflect the Changing Domestic Fuel Source Landscape Natural Gas & Renewables Continue to Grow as Coal Declines Fuel Tech Revenue by Fuel Source Generation of U.S. Electricity by Source (KWh in billions) 2500 2024 2020 2000 10% 1,802 21% 1500 22% 5% 68% 74% 1000 894
Slide 13: FUEL CHEM / Chemical Technologies
FUEL CHEM® / Chemical Technologies Boiler Efficiency Improvements that Drive Operational, Financial, & Environmental Benefits • Reduces slag and a variety of pollutants and greenhouse gases REVENUES ($ in MMs) • Allows customers to burn lower grade coal (fuel flexibility) $16.3 $13.6 $13.9 • Offers
Slide 14: Delivering Improved ROI
Delivering Improved ROI Availability / Reliability Efficiency Gains / Heat Maintenance Benefits / Labor Fuel Flexibility Gains Rate Improvements & Equipment Savings REDUCE INCREASE INCREASE INCREASE • Service interruption or • MW per unit of fuel input • Profits, by allowing plants to • Equipment li
Slide 15: TIFI Treatment Benefits
TIFI® Treatment Benefits Targeting the Furnace Boiler Before TIFI® Boiler After TIFI® (not the fuel) REDUCTION in DOWNTIME Coal/Oil | Yard Waste | Demo Waste Logging & Mill Residue | Wood Chips Switch Grass | Forest Residue 15
Slide 16: TIFI Targeted In-Furnace Injection Programs Mitigate SO3
TIFI® Targeted In-Furnace Injection Programs Mitigate SO3 PUNTA PRIETA / LA PAZ, MEXICO LONG-TERM OPPORTUNITY • Pursuing opportunities with partner in Mexico to burn high-sulfur fuel oil produced by Pemex • At present, this oil is largely being burned without pollution control measures • Government
Slide 17: Dissolved Gas Infusion
Dissolved Gas Infusion Efficient oxygen delivery for water & wastewater treatment processes across industries • Effective, flexible, and environmentally-friendly • Patented infusion vessel and patent-pending injector array to ensure effective dissolved oxygen (DO) delivery • Potential for reduced en
Slide 18: Dissolved Gas Infusion
Dissolved Gas Infusion DGI® can be used to: • Enhance or increase capacity of underperforming aeration systems • Deliver industrial and remedial process intensification • Work as a rapid response option or augment underperforming legacy technologies • Deliver residual DO at higher concentrations and
Slide 19: Multiple System Benefits, Capabilities, & Applications
Multiple System Benefits, Capabilities, & Applications AQUACULTURE WATER & WASTEWATER TREATMENT AGRICULTURE • Precise control of dissolved oxygen • Rapid dosing to increase treatment • Radically increasing plant yields • Improve animal health and growth rates capacity • Maximize potential of limited
Slide 20: Aquaculture Applications Validated Through Demonstrations
Aquaculture Applications Validated Through Demonstrations A close-up of a cover Description automatically generated Commencing Demonstration in early Q2 2025 • Selected by a State government agency for an extended demonstration at a fish hatchery in the Western U.S. • Demonstration will coincide wit
Slide 21: 2025 Outlook
2025 Outlook BUSINESS SEGMENTS FINANCIAL Air Pollution Control (APC) • Total revenues will exceed $30 MM, with both APC and • Expect higher revenues in 2025 compared to 2024 FUEL CHEM exceeding their performance in 2024. • Pursuing separate opportunities with the operators of municipal waste combust
Slide 22: Financial Overview
Financial Overview Statement of Operations Summary FY 2024 FY 2023 FY 2022 ($ in thousands, except EPS) Total Revenues $25,133 $27,081 $26,941 Cost of Sales $14,510 $15,425 $15,298 Selling, general and administrative expenses $13,761 $12,803 $12,275 Operating loss $(4,702) $(2,658) $(1,527) Net loss
Slide 23: Thank You!
Thank You! Vince Arnone Devin Sullivan Chairman, President and CEO Managing Director [email protected] (630) 845-4500 [email protected] Conor Rodriguez Associate [email protected] ftek.com 23