Fuel Tech Announces Second FUEL CHEM(R) Demonstration in the People’s Republic of China

Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advanced engineering solutions for the optimization of combustion systems in utility and industrial applications, today announced the award of a second FUEL CHEM(R) demonstration program in the People’s Republic of China (PRC). Under terms of a previously announced teaming agreement, Fuel Tech and ITOCHU Hong Kong Ltd., a subsidiary of ITOCHU Corporation, will share in the financial outcome of this initiative.

The demonstration, scheduled to commence later this quarter, will be conducted in one of the PRC’s central coastal power plants on a small, cogeneration boiler producing both electricity and steam. The customized FUEL CHEM program, utilizing TIFI(TM) Targeted In-Furnace Injection(TM) technology, will be designed to show a number of operating and financial benefits, including: fuel and heat efficiency improvements, made possible by cleaner heat transfer surfaces; enhanced fuel options, which will reduce overall fuel costs by enabling the plant to burn a broader spectrum of local and imported coals; and increased power and steam generation, which will provide additional sales opportunities. Importantly, these benefits are expected to be accompanied by a lessening of the boiler’s environmental impact, including reductions in toxic air emissions and in the rate of carbon dioxide (CO2) production.

John F. Norris Jr., President and Chief Executive Officer, commented, “We are very pleased to announce that a second major power generator in the People’s Republic of China will be demonstrating our unique technology to address challenging operational issues. With interests in a number of coal-fired cogeneration and base load power plants in the PRC, this client affords our technology the type of exposure that will be critical for successful penetration of the vast Chinese market.”

Mr. Norris continued, “This TIFI initiative also represents an excellent opportunity to demonstrate strong performance in a small, generally less efficient cogeneration boiler, the type of unit that is found in large numbers throughout the PRC and will be increasing in unit volume to match the growth in China’s industrial and economic base. We believe a successful demonstration will be a powerful driver for other plant owners seeking similar operational and economic benefits from a TIFI program.”

Mr. Norris concluded, “As the world’s largest coal-based energy producer, the PRC offers unparalleled opportunity for the deployment of TIFI technology. We intend to continue pursuing this untapped market by continuing to work closely with ITOCHU, which is in ongoing discussions with a number of other potential clients.”

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(R), NOxOUT CASCADE(R), NOxOUT ULTRA(R), Rich Reagent Injection (RRI) and NOxOUT-SCR(R) 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(R) 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 100 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste. A breakdown of the nature of these customer units is posted on the Company’s website.

The Company also provides a range of services to help optimize selective catalytic reduction system performance, including catalyst management services and ammonia injection grid tuning. In addition, flow corrective devices and physical and computational modeling services are available to optimize flue gas distribution and mixing in both power plant and industrial applications.

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.

This press release may contain statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Fuel Tech files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.