Arq, Inc. announced it has secured material incremental contracted volume for the supply of granular activated carbon (GAC) to be produced at its strategic Red River facility. For competitive reasons, the Company will not be sharing the sectors or volumes of all associated customers. Total contracted GAC demand now stands, when fully scaled up to ultimate run-rate requirements, at 13 million pounds per annum, representing 52% of Arq's expanded nameplate capacity of 25 million pounds per annum at its strategic Red River activated carbon manufacturing facility.

Consistent with previous GAC contract awards, pricing remains attractive and represents a multiple of the Company's average powdered activated carbon (PAC) pricing, while significantly growing the total revenue base and expanding margins. Construction at the Red River facility remains on schedule for first commercial production by year-end 2024. The capital requirement for completion of the Red River GAC expansion project remains in line with the previous forecast at $60-70 million in 2024.

The Company continues to expect this investment in its Red River expansion project to drive very attractive economics.