Arq Announces First Supply Contract for its Strategic Granular Activated Carbon (GAC) Facility

Achieved critical strategic milestone with the execution of its first supply contract for Granular Activated Carbon ("GAC") product with a new customer

Agreement reflects 5 million pounds/year of GAC with delivery commencing in Q1 2025; Arq’s Red River GAC plant is on target to complete commissioning in Q4 2024

Encouraging ongoing discussions with additional potential customers for further GAC contracts; Arq expects additional near-term announcements

GREENWOOD VILLAGE, Colo., May 08, 2024 (GLOBE NEWSWIRE) -- Arq, Inc. (NASDAQ: ARQ) (the "Company" or "Arq"), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced the execution of its first sales contract for delivery of GAC produced from its unique purified bituminous coal waste derived feedstock at its strategic Red River facility.

Under the terms of the agreement, the new Arq customer, a North American solutions provider of water and wastewater treatment and PFAS capture technologies, will purchase a forecasted 5 million pounds of GAC product in 2025, reflecting approximately 20% of the facility's initial expanded nameplate capacity of 25 million pounds per year.

Bob Rasmus, CEO of Arq commented, "Today's announcement reflects a critical milestone in the ongoing strategic transformation of Arq. Our first GAC supply contract represents third party validation of our strategy and our GAC solutions. The contract demonstrates follow through on our commitment to stakeholders and the hard work of our entire team. The contract pricing is attractive, and represents a multiple of our average PAC pricing. This amplifies our confidence in our strategy while further de-risking the strategic development of Red River. We now have approximately 20% of our nameplate Red River capacity now contracted nearly 9 months ahead of commissioning. We remain in advanced levels of dialogue with a range of potential counterparties. Based on those discussions, we remain in an enviable and exciting position to contract the remainder of our capacity prior to initiation of production at attractive rates."

Garrett Chandler, VP Sales of Arq added, "Securing this strategic partner as our first GAC customer is an exciting development as we aim to deliver successfully into a pipeline of sales growth. Our sales team has done an impressive job in helping to achieve today's milestone, and we are even more confident in our ability to contract the remaining capacity for our new GAC products ahead of final commissioning in Q4 2024. The EPA's recent announcement regarding definitive PFAS regulations only amplifies the importance of GAC products in the water market, and the significant higher demand we expect for our solutions over the near and long-term."