The Pritchard Capital Partners "Energize 2009" Conference Presentation

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Please note that this presentation contains forward-looking statements within the meaning of

U.S. securities laws, including statements relating to coal; future bids, contracts, projects,

project funding and revenues; statements regarding the new activated carbon (AC) facilities

we are building and our ability to supply AC; the likelihood, timing and impact of new laws

and court rulings on our target markets; and anticipated sizes of and growth in our target

markets.

These forward-looking statements involve significant risks and uncertainties that could cause

the actual results to differ materially from those anticipated by these statements, including

failure to raise additional financing; termination of agreements; failure to satisfy conditions in

the equity financing agreements for the AC facility; inability to sign or close acceptable coal

supply or off-take agreements in a timely manner; changes in the costs and timing of

construction of the planned AC facilities; availability of raw materials, equipment and

facilities; changes in laws or regulations, prices, economic conditions and market demand;

impact of competition and litigation; changes in the political landscape; availability and cost

of alternative energy sources; operational difficulties; availability of skilled personnel; and

other factors discussed in greater detail in our filings with the SEC. You are cautioned not to

place undue reliance on our forward-looking statements. These statements are presented

as of the date made, and we disclaim any duty to update them unless required by law to do

so.

Clean Coal Technology

Coal is an abundant, cheap, and secure fuel

that provides over 50% of electricity in the US

1,100 coal-fired boilers in the U.S.

ADA provides the technology to burn it cleaner

Senior staff are industry recognized experts

–

30-year track record of developing and then

commercializing technologies

Positioned to take advantage of public and

political support for Clean Coal Technologies

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Investment Highlights

Two Significant Avenues of Growth:

Activated Carbon Injection (“ACI”) is deemed best available control

technology for the removal of mercury from flue gas streams

ADA is a current market leader for ACI equipment and engineering

services

Existing regulations create $200-400 million activated carbon (“AC”)

market

Responses to Court rulings likely to lead to $1 billion market for AC

ADA has started construction of the largest, most efficient AC

manufacturing facility in North America

Developing capture technology for greenhouse gas CO

Recently started work under $3.2 million DOE and utility funded

program to develop new technology

Federal funding expected to increase to >$1 billion/yr

Mercury

Control

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Business Plan in Action for Mercury Control

Stage

ADA

demonstrated

ACI

with

$80

million

from

DOE

and leading utilities: Regulations followed.

Stage

After

market

was

created

regulations,

ADA

became a leader in the sale of ACI equipment: approximately

$1 million per boiler.

Stage 3:

Provide AC to utilities for a continuous revenue

source: approximately $2 million per year per boiler.

2009-10: Building AC production line; sourcing AC from

third parties for treating, storing and selling to utilities.

2010: Activated Carbon Production Line commences

operations.

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AC Market Drivers:

Regulations for Mercury Control

Existing rules create $200 -

400 million AC market

State with proposed legis/regs

more strict than CAMR (13)

State with firm legis/regs

more strict than CAMR (13)

Planned plant that has ordered mercury control system

Plant with consent decree limiting mercury emissions

State currently accepting CAMR (24)

Total Existing Coal-Fired Capacity

24,000

12,000

2,400

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New Federal Legislation Likely in US;

Rules in Canada on Similar Track

2/8/08: DC Circuit Court of Appeals vacated Clean Air Mercury

Rule (CAMR)

•

EPA will have to develop MACT mercury reduction standards

for existing power plants

7/11/08: DC Circuit Court of Appeals vacated EPA’s Clean Air

Interstate Rule (CAIR)

UPDATE

on 12/23/08: DC Circuit Court reinstated CAIR

temporarily until EPA replaces with stronger rule

Strong need for Congress to implement a multi-pollutant

legislation for SO

, NO

and Mercury

–

Bills requiring 90% mercury control for all power plants have

bipartisan support in the Senate and the House

–

Priority for new Congress

Expected to create $1 billion AC market

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ACI Equipment Sales: Status

Contracts for over 90 ACI systems have been awarded by

power companies to date

–

ADA market share: approximately 37%

–

The rest are split between 7 or 8 other companies

A total of 150 systems will be needed to meet state

regulations

Working closely with largest utilities in the U.S. and Canada

Key supplier of mercury control technology to major air

pollution control companies

–

Babcock and Wilcox, Alstom

Power, Hamon

Research

Cottrell and Hitachi, among others

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New Market for Activated Carbon

Created by Mercury Control

500

1,000

Activated

Carbon

(millions of

lbs / yr)

Current H20 AC

Market

Developing Market

for Hg Control

2006

2010E

2015E

ANNUAL U.S. MARKET

Significant production gap

Based

on existing

regulations

Based on anticipated

Federal regulation

ADA-ES New Activated Carbon Production

Developing largest AC plant(s) in North America

Each production line will produce 125-175 mm lbs/yr.

Capital cost: approx. $350 mm

3-5 year development process:

–

Under construction

Red River, LA plant startup

target: mid-2010

Permitted for 2

production line

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Equity Financing for AC Plant

Equity investment by ADA and Energy Capital Partners (ECP) to date:

$25.5 mm each

ECP

expected

fund

the

until

closing

its

purchase

3.6

million

Convertible Preferred ADA shares at an average price of

approximately $6.30

ADA

required

contribute

net

proceeds

Convertible

Preferred

the JV upon closing

ECP has the right to provide additional equity at the project level as

necessary

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Debt Financing for AC Plant

Credit Suisse coordinating debt placement

Because of current conditions in the financial

market, financing will be delayed until improved

market conditions, possible 3Q09

Equity continues to fund construction activities

keeping project on schedule

Project debt will be based on $200-$400 mm in

“take or pay”

contracts for AC

–

First “take-or-pay”

contracts signed: $160+ mm

–

Negotiations and discussions on $500 mm of AC demand

Development Project Organization

(assumes ECP purchase of Convertible Preferred Shares)

ADA -

Energy Capital

Partners (ECP)

Underwood

Environmental

Products, LLC

Morton

Environmental

Products, LLC

Red River

Environmental

Products, LLC

Crowfoot

Development,

LLC

Debt Financing at Project Level

(Based on expected $200-400

million take-or-pay contracts)

Parent

Companies

Development

Company

Project

Companies

35% Owner

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Crowfoot

Supply

Company, LLC

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Interim AC Supply Plans

Currently supplying AC to utilities prior to new plant start-up

Sourcing high-quality AC

–

Contract signed for 20 million lb/yr in 2009

–

Negotiations ongoing for additional supply

processing and storage facility under construction in Natchitoches

Parish, LA; Construction expected to be completed in Q2’09

–

40,000 sq. ft. facility w/ processing capacity of 8,000 lb/hr of

Powdered AC

–

Facility will complement ADA’s AC production plant in Red River Parish, LA

–

Equipment purchased to chemically treat, mill, package, and store AC

–

Easy access to rail and barge transportation

–

Scalable for additional long-term processing and storage capacity

Project led by industry veterans

–

John Rectenwald –

27 years AC operations and manufacturing

–

Steve Young –

35 years AC experience in engineering and production

First test of ADA-provided AC achieved 90% mercury capture

ADA-ES CO

Capture Technology

Designed to capture CO

from flue gas in conventional coal-

fired boilers

Based on regenerable

solid sorbents -

advantages over

competing technologies:

–

For the customer: lower cost and less parasitic energy

–

For ADA: continuous revenues from sale of proprietary

chemical sorbents

$3.2 million DOE R&D program with extensive industry support

–

Southern Company

–

Luminant

–

American Electric Power

–

Xcel Energy

–

Electric Power Research Institute

Funding for CO

technology expected to increase

to $1 billion per year

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Post-Combustion Capture

Emission

Control

, NO

Hg, Particulate

STEAM

WATER

Coal*

50% C

20% H

12% O

5% Ash

3% H

(S, Hg)

Coal

composition

varies

greatly

with

grade

and

source.

Capture

Air

78% N

21% O

Purified CO

to Storage

Regeneration

Flue Gas

12% CO

74% N

12% H

4% O

Financial Highlights

Cash flow positive on an

annual basis since 2003 spin-

off

Revenue CAGR of 35%, 2003

-2007

2008 revenues flat, impacted

by CAMR and CAIR vacaturs

of 9/30/08:

–

6.7 mm diluted shares outstanding

–

50%+ held by institutions

–

~10% held by insiders and

employees

Balance sheet highlights (at

9/30/08):

–

Cash & equivalents of ~$14 mm

–

Working capital of ~$10 mm

–

No long-term debt

–

Shareholders’

equity of $35 mm

Market cap: $ 27mm (01/02/09)

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Summary

ADA-ES instrumental in creating mercury control market

–

Existing rules: estimated 150 ACI systems, 400 million lbs/yr of

AC -

$200-

400 mm market

–

Pending Federal Rule: estimated 600-700 ACI systems, 1 billion lbs/yr of AC -

$1 billion market

Leading provider of engineering services and equipment for

the mercury control market

Building new AC plant for this market; expected to come

online mid-2010

–

Construction started in August

–

Energy Capital Partners I, LP and affiliated funds providing equity financing

–

Debt to be supported by long-term off-take contracts

–

$160 mm in AC contracts executed to date

–

Supplied bids for over $500 mm in AC with new RFPs

Developing carbon capture technology

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