Wahlco awarded $1 million contract for urea-to-ammonia conversion systems

SANTA ANA, Calif., July 23, 2002 — Wahlco Inc. announced the award of a $1 million contract to provide the patented U2Aà¢â€ž- (urea-to-ammonia conversion) system to be used in NOx reduction applications at a major Maryland installation.

Designed to produce 100 lb/hr of ammonia from a 50% urea solution for year-round operation, the system will serve three gas fired turbines at a liquid natural gas compressor station near Baltimore.

Ammonia is used in reducing the emission of toxic NOx (oxides of nitrogen) into the atmosphere. However, ammonia is regulated and considered a hazardous substance by the EPA and OSHA. The U2A system safely converts urea, a stable compound commonly used in fertilizer, into ammonia as needed, thereby eliminating transportation and storage risks.

“We’re all aware of heightened sensitivity surrounding public safety issues,” stated James Clark, president and CEO of Wahlco. “When weighing the risks of handling ammonia, there are compelling reasons to consider alternatives. We predict strong future demand for U2A system technology which enjoys a proven track record for reliability and safety.”

Developed by EC&C Technologies, under a grant sponsorship from the EPA’s SBIR program, Wahlco shares the exclusive license to supply the patented U2A system worldwide with Hamon Research-Cottrell. Wahlco and Hamon are currently working with seven utilities at nine locations, totaling approximately 12,000 Megawatts of generating power, who have chosen U2A equipment for their NOx systems.

Founded in 1972, Wahlco designs and manufactures air pollution control systems including flue gas conditioning equipment, anhydrous and aqueous ammonia systems and U2A urea-to-ammonia conversion systems for energy utilities, refineries and industrial clients.

Wahlco (formerly Wahlco Environmental Systems) is privately held and was purchased by members of the management team in partnership with industry professionals in January of 2001. Located in Santa Ana, Wahlco is not affiliated with Wahlco Engineered Products Inc. or Wahlco Metroflex.

For further information on Wahlco and/or U2Aà¢â€ž- System technology, visit www.wahlco.com.

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