Eighth Annual JMP Securities Research 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, ownership 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

facilities;

inability

sign

acceptable

coal

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

construction

the

planned

facilities;

availability

and

cost

raw

materials,

equipment

and

facilities;

changes

laws

regulations,

prices,

economic

conditions

and

market

demand;

impact

competition

and

litigation;

decreases

the

use

coal

for

electricity;

results of product demonstrations; technical and 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.

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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 maximum achievable

control technology (MACT) 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

Federal regulations being developed by EPA and Congress 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

Recently started work under $3.4 million DOE and utility funded program to

develop new technology

Over $3 billion allocated in the American Recovery and Reinvestment Act

for carbon capture and storage

Mercury

Control

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Business Plan in Action for Mercury Control

Stage 1:

ADA demonstrated ACI with $80 million from DOE

and leading utilities: Regulations followed.

Stage 2:

After market was created by 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.

Spring 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

* Pennsylvania rule is being contested in the courts

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

2/6/09: EPA announced it will proceed with MACT

mercury reduction standards

4/21/09: EPA proposal to reduce mercury emissions by

approx. 80% from Portland cement kilns, the fourth

largest source of mercury emissions in the U.S

Both Senate & House pursuing multi-pollutant legislation

for

and

Mercury,

and

possibly

Canadian-wide mercury standard has been passed

Expected to create $1 billion AC market

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ACI Equipment Sales: Status

Contracts for over 110 ACI systems have been awarded by

power companies to date

–

ADA market share: approximately 32%

–

The rest are split between 7 or 8 other companies

A total of 150 systems will be needed to meet current state

regulations

Additional ~ 450 systems expected with federal regulation

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

Key supplier of mercury control technology to major air

pollution control companies

ADA-ES New Activated Carbon Production

Building largest AC plant(s) to

date

Each production line will

produce approx.150 mm lbs/yr

Capital cost: approx. $360 mm

3-5 year development process:

–

Under construction and

on schedule

Red River, LA plant startup

target: mid-2010

Permitted for 2 production line

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Debt Financing for AC Plant

Credit Suisse coordinating debt placement

Because of current conditions in the financial market,

debt financing will be delayed until improved market

conditions later in 2009

Equity continues to fund construction activities keeping

project on schedule

–

Weak credit markets have had no adverse impact on project

funding to date

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Interim AC Supply Facility

Currently supplying AC to utilities prior to

new plant start-up

Sourcing high-quality AC

processing and logistics facility under

construction in NW LA, start up Q2’09

–

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

8,000 lb/hr of Powdered AC

–

Equipment purchased to chemically treat, mill,

package, and store AC

–

Easy access to rail and barge transportation

Project led by industry veterans

–

John Rectenwald –

27 years AC experience

–

Steve Young –

35 years AC experience

First test of ADA-provided AC achieved 90%

mercury capture

ADA-ES CO

Capture Technology

Designed

capture

from

flue

gas

conventional

coal-fired

boilers

Based

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

$3.4 million DOE R&D program with extensive industry support

–

Southern Company

–

Luminant

–

American Electric Power

–

Xcel Energy

–

Electric Power Research Institute

Expect to recognize approximately $1.9 million of the $3.4 million in

2009 and the remaining $1.5 million in 2010.

Over $3 billion allocated in the Stimulus Bill for

carbon capture and storage

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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

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Financial Highlights

Cash flow positive on an

annual basis 2003-2007

Revenue CAGR of 23%,

2003 -

2008

2008 ACI revenues flat,

impacted by CAMR and

CAIR vacaturs

Q1’09 total revenues up

22% to $4.9mm due to a

19% increase in ACI system

sales

of 3/31/09:

–

6.9 mm diluted shares outstanding

–

50%+ held by institutions

–

~11% held by insiders and

employees

Q1’09 Cap ex = $23.6 mm

Balance sheet highlights (at

03/31/09):

–

Cash & equivalents of $28.4 mm

–

Working capital of $9.0 mm

–

No long-term debt

–

Shareholders’

equity of $82.6 mm

Market cap: $27.4 mm (05/06/09)

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Summary

ADA-ES instrumental in creating mercury control market

–

Existing

rules:

estimated

150

ACI

systems,

400

million

lbs/yr

$200-400

market

–

Pending

Federal

Rule:

estimated

600-700

ACI

systems,

billion

lbs/yr

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 2008

–

Energy

Capital

Partners

and

its

affiliated

funds

providing

equity

financing

–

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

–

$160 million or 1/3 of plant capacity sold/committed for.

–

In negotiations for additional contracted volume

–

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

Developing carbon capture technology

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