Fuel Tech, Inc. commenced operation of a new TIFI Targeted In-Furnace Injection system at a coal-fired unit in the western United States. FUEL CHEM's TIFI® technology is allowing this customer to burn a more cost-efficient variety of coal than the unit is designed to burn, as they seek to generate power and optimize profitability at full-capacity levels during the high demand summer months. Initial results in reducing slagging and fouling at this facility have been promising.

The revenue potential at this facility, represented by chemical sales, will be driven by power demand and unit dispatch. If the program continues to be successful, FUEL TECH expects that this one new facility will generate full year 2022 revenues of $500,000 to $1.0 million along with historic FUEL CHEM gross margins. FUEL CHEM's TIFI® offers a variety of benefits for coal-fired facilities, including: Fuel flexibility where unit owners are finding that they cannot keep their traditional long-term source of coal in inventory.

Enabling coal unit dispatch where high natural gas prices are providing the opportunity for coal units to bid into regional power markets. The maximation of uptime for units running at high-capacity loads while using fuels that are difficult to burn. A zero-capital investment approach where customers only pay for FUEL CHEM's TIFI® technology when it is needed.