Fuel Tech Awarded Air Pollution Control Orders Totaling $3.0M

Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advanced engineering solutions for combustion and emissions control systems for utility and industrial applications, today announced receipt of multiple air pollution control orders totaling $3.0 million.

The largest of these orders, placed by a major utility and an existing customer, was an award of two ULTRA™ systems for retrofit coal-fired units in China. Fuel Tech’s ULTRA process provides for the safe and cost-effective on-site conversion of urea to ammonia for use as a reagent in the selective catalytic reduction of nitrogen oxide (NOx), eliminating the hazards associated with the transport, storage and handling of anhydrous or aqueous ammonia. Equipment deliveries are currently scheduled for late in 2011.

The Company also received an equipment order, from a major domestic utility and existing customer, to provide Selective Non-Catalytic Reduction (SNCR) systems on three combustion units to address NOx emission requirements under the Cross-State Air Pollution Rule (CSAPR), which takes effect starting January 1, 2012. Equipment deliveries on this order are currently scheduled for late in 2011.

Additional CSAPR-related orders were for Computational Fluid Dynamic (CFD) modeling for five units from multiple customers that are evaluating SNCR technology as an option to comply with their NOx emission requirements. Often, modeling initiatives represent the first steps in an investment program and can lead to larger equipment and installation orders in the near future. An order was also received for an upgrade of an existing SNCR system at a utility in the Northeast.

Douglas G. Bailey, Chairman, President and Chief Executive Officer, commented, "We continue to gain traction in the Chinese market, in particular with our proprietary ULTRA technology. China continues to be a very active market for all of our technologies as new regulations are now in place for broad reductions of NOx emissions. Additionally, we are pleased that these domestic utility customers have selected Fuel Tech to implement equipment solutions and evaluate short term strategies to achieve compliance in a dynamic regulatory environment that is calling for greater reductions in NOx emissions under the new Cross-State Air Pollution Rule. Fuel Tech’s SNCR technology can provide our customers with timely NOx reductions where boilers may operate across a wide load range, and these flexible systems are designed to complement additional Fuel Tech NOx reduction technologies, including combustion modifications, ASCR™ (Advanced Selective Catalytic Reduction) and conventional SCR.”

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 advanced combustion modification techniques - such as Low NOx Burners and Over-Fire Air systems - and post-combustion NOx control approaches, including NOxOUT^® and HERT™ SNCR systems as well as systems that incorporate ASCR™ (Advanced Selective Catalytic Reduction), CASCADE™, ULTRA™ and NOxOUT-SCR^® processes. These technologies have established Fuel Tech as a leader in NOx reduction, with installations on over 640 units worldwide, where coal, fuel oil, natural gas, municipal waste, biomass and other fuels are utilized.

The Company’s FUEL CHEM^® 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 operational issues associated with sulfur trioxide, ammonium bisulfate, particulate matter (PM_2.5), carbon dioxide and NOx. The Company has experience with this technology, in the form of a customizable FUEL CHEM program, on over 110 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste.

Fuel Tech also provides a range of combustion optimization services, including airflow testing, coal flow testing and boiler tuning, as well as 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.