Rodman & Renshaw Annual Global Investment 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,

tax

credits

and

revenues;

statements

regarding

the

new

activated

carbon

(“AC”)

facility

ADA-CS

building;

ADA-CS’

ability

supply

AC;

the

likelihood,

timing

and

impact

new

laws,

regulations

and

court

rulings

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, including changes in laws and

regulations,

government

funding,

prices,

economic

conditions

and

market

demand;

impact

competition

and

litigation;

availability,

cost

and

demand

for

alternative

energy

sources

and

other technologies; operational difficulties; availability of skilled personnel; failure to satisfy

performance guaranties; risks related to ADA-CS such as changes in the costs and timing of

construction of the AC facility, failure to raise additional financing or satisfy conditions in

existing agreements and inability to sign or close acceptable coal supply and off-take

agreements

timely

manner;

availability

raw

materials

and

equipment

for

our

businesses;

and

other

factors

discussed

greater

detail

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

Activated Carbon Injection (“ACI”) is deemed maximum achievable

control technology (“MACT” ) for the removal of mercury

ADA is a market leader for ACI equipment and engineering services

Existing regulations create $200-400 million market for activated carbon

(“AC”)

Federal regulations likely to lead to $1 billion market for AC

ADA-CS building new energy-efficient AC manufacturing facility in LA

Developing

capture

technology

for

greenhouse

gas

Started work under $3.2 million DOE and utility funded program

Funding opportunities for CCS have increased under President

Obama

Mercury

Control

Refined

Coal

Control

Patented technology designed to improve combustion of PRB Coals

in Cyclone boilers while reducing emissions of mercury and NOx

Section 45 of IRS Code provides tax credit of $6/ton for ten years

In negotiations with numerous parties to build several production

facilities for refined coal product

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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:

ADA-CS providing AC to utilities for a continuous

revenue source: approximately $1-2 million per year per

boiler.

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AC Market Drivers:

Regulations for Mercury Control

Existing

rules

create

$200

400

million

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 U.S.

U.S. EPA MACT Process

–

Covers all 189 Hazardous Air Pollutants (HAPs)

–

Should result in 90 to 95% limit for mercury

–

Timing on regulation should be announced in the next 6-9

months

U.S. Legislation

–

3-P Bill could be added to Climate bill by Sen. Carper (D-DE)

and Alexander (R-TN) which includes 90% Hg

Canadian-wide mercury standard has been passed

Expected to create $1 billion AC market

and the need for an additional 500 ACI Systems

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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-CS New Activated Carbon Production

Building largest AC plant(s) to date: 150 mm lbs/yr

Capital cost: approx. $360 mm

Plant designed to be low-cost producer

3-5 year development process: Under construction and

on schedule

Red River, LA plant startup target: mid-2010

Site

permitted

for

production

line

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Ownership Structure after ECP

Equity

Investment

Parent

Companies

Development

Company

Project

Companies

35% Owner

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*Based upon estimates of final capital and financing costs upon closing of debt financing.

30%*

70%*

Energy Capital

Partners (ECP)

ADA Carbon

Solutions,

LLC*

Red River

Environmental

Products, LLC

Underwood

Environmental

Products, LLC

Morton

Environmental

Products, LLC

Crowfoot

Supply

Company, LLC

ADA -

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Debt Financing for AC Plant

Credit Suisse coordinating debt placement

Equity has funded construction activities to date, keeping

project on schedule

–

Weak credit markets have had no adverse impact on project

funding to date

Delaying debt placement until more favorable financial

market conditions

ECP is continuing to fund construction beyond

anticipated equity investment

–

Continued funding by ECP likely to result in 30% ownership by

ADA

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ADA-CS

Interim AC Supply Facility

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

Sourcing high-quality AC

processing and logistics facility

–

40,000

sq.

ft.

facility

processing

capacity

8,000

lb/hr

Powdered

–

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

–

Easy access to rail and barge transportation

ADA’s

Competitive

Advantage

Complete Solutions Provider

APC Expertise

Mercury Measurement

Interim Processing

Production Facilities

Logistics

CO2 Capture

Sorbent Development

Ash Disposal Studies

ACI System Enhancements

Clean Coal Solutions

Beneficial Use of Ash

ACI Systems

Flue Gas Conditioning

Aftermarket Service

ACI Testing

System Optimization

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

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

–

Southern Company, Luminant, American Electric Power, Xcel Energy

Expect to recognize approximately $1.9 million of the $3.2 million in

2009 and the remaining $1.3 million in 2010.

There has been a significant increase in funding opportunities for CCS

technology through DOE.

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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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Clean Coal Solutions LLC

ADA Joint Venture

Clean Coal’s patented refined coal technology, CyClean,

is designed to enhance combustion of PRB coals in

cyclone boilers

It produces significant benefits to the customer:

–

Reduces NOx and mercury emission

–

Greater PRB fuel flexibility

–

Enhanced operability

–

Decreased demand for activated carbon

Customer can share up to half of the $6/ton tax credit for

qualified product

Equipment is simple to fabricate and install

–

Capital investment approximately $800k per site

–

Fabrication and installation 3-5 months

Section 45 Refined Coal Tax Credit

Tax credit incentive

–

$6 ton/coal for ten years

–

Example for 500 MW plant: 2 mm tons/yr will create a

tax credit of $12 million per year for 10 years

Tax credit qualifications

–

Placed in service by January 1, 2010

–

Owned and operated by third party

–

Reduces NOx by 20%

–

Reduces Hg by 40%

Cyclean market size

–

Discussions are being held with customers with twelve

possible sites

–

>30 mm tons/yr of coal would produce tax

credits in excess of $180 million/yr for ten years

Opportunities and Challenges for

CyClean

Opportunity

–

Target goal is to get up to six facilities installed before year-end

–

Produce >$10 million in earnings for ten years

–

$4 million due from NexGen to maintain 50% of JV

Challenges

–

Equipment must be fabricated and installed by year-end

•

Two systems have been ordered

•

Additional staged purchases are planned

–

Approximately $3 million in JV capital expenditures

–

Waiting for explicit guidance from IRS

–

Permits required prior to installation

–

Complicated contracts with utility partners must be

completed for each facility

–

Agreements with monetizers must be secured

Financial Highlights

Cash flow positive on an

annual basis 2003-2007

Revenue CAGR of 23%,

2003 -

2008

6M’09 total revenues up

24% to $9.7 mm due to

increased ACI system

sales*

of 6/30/09:

–

7.0 mm diluted shares outstanding

–

50%+ held by institutions

–

~11% held by insiders and

employees

Balance sheet highlights (at

06/30/09):

–

Cash & equivalents of $1.3 mm

–

Working capital of $4.7mm

–

No long-term debt

–

Shareholders’

equity of $30.3 mm

Market cap: $27.7 mm (08/14/09)

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Six

months

2009

financial

results

not

consolidate

the

results

the

subsidiary,

ADA

Carbon

Solutions,

LLC, ADA’s joint venture with Energy Capital Partners and its affiliates.

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 total ACI systems, 1 billion lbs/yr of AC -

$1 billion market

Leading provider of engineering services and equipment for mercury control

ADA Carbon Solutions is building new AC plant for this market; expected to

come online mid-2010

–

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

Developing carbon capture technology

–

Significant funding opportunities ($3.4 billion) from DOE this year

In negotiations to build several refined coal facilities for Section 45 tax credits

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