The paper demonstrates that a TIFI program application to control opacity from sulfur trioxide (SO3) emissions can provide a greater than four to one return on investment while solving a challenging environmental problem. In contrast, most environmental solutions require additional capital, operating and maintenance costs with little or no financial payback. The success of the TIFI program provides a new approach for utilities to reduce fuel and operating costs by burning the higher sulfur and lower ash fusion temperature coals that cause increases in SO3 emissions.

John F. Norris Jr., President and Chief Executive Officer, commented, “We are extremely excited to disseminate the extraordinary results of this case study, which is available in its entirety on the Company’s website at www.ftek.com. This exhaustive report validates the value proposition of FUEL CHEM® programs, which are successfully meeting evolving market demands by delivering quantifiable, performance-based engineering solutions for our customers.”

Mr. Norris continued, “The need for SO3 control will only grow as selective catalytic reduction (SCR) systems for nitrogen oxide (NOx) control are deployed increasingly on large units burning higher sulfur coals. Our proprietary approach not only helps resolve this particular environmental issue, but also attacks performance-hindering problems that simultaneously arise within the furnace. Equally important, our objectives can be met in an environment of declining coal quality, where fuel flexibility, and the associated cost savings, are important considerations for plant operators.”

Mr. Norris concluded, “We thank Santee Cooper for the resources dedicated to this study and for having embraced our TIFI technology with a previously announced three-year FUEL CHEM contract, commencing February 2007.”

About Fuel Tech

Fuel Tech is a leading technology company engaged in the worldwide development, commercialization and application of state-of-the-art proprietary technologies for air pollution control, process optimization, and advanced engineering services. These technologies enable customers to produce both energy and processed materials in a cost-effective and environmentally sustainable manner.

The Company’s nitrogen oxide (NOx) reduction technologies include the NOxOUT®, NOxOUT CASCADE®, NOxOUT ULTRA®, Rich Reagent Injection (RRI) and NOxOUT-SCR® processes. These technologies have established Fuel Tech as a leader in post-combustion NOx control systems, with installations on over 450 units worldwide, where coal, municipal waste, biomass, and other fuels are utilized.

The Company’s FUEL CHEM® technology revolves around the unique application of chemicals to improve the efficiency, reliability, fuel flexibility and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter (PM2.5), carbon dioxide and NOx. This technology, in the form of a customizable FUEL CHEM program, is being applied to over 90 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste.

Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. These capabilities, coupled with the Company’s innovative technologies and multi-disciplined team approach, enable Fuel Tech to provide practical solutions to some of our customers’ most challenging problems. For more information, visit Fuel Tech’s web site at www.ftek.com