Batavia's Fuel Tech poised for strong year

Fuel Tech Inc., a marketer of efficiency and pollution technologies for coal-driven and other energy-related facilities worldwide, has secured an order for two demonstrations of its proprietary Fuel Chem technology by a new domestic electric utility customer.

Batavia-based Fuel Tech has now nailed-down seven Fuel Chem demonstrations for this year, including Fuel Chem's first forays into India and China.

According to spokeswoman Tracy Krumme, the company did 13 Fuel Chem demonstrations in 2007.

"We expect to beat that this year," Krumme said, asserting Fuel Tech has a perfect track record of converting demonstrations into sales contracts.

Fuel Chem, designed to make combustion units cleaner, faster and more cost effective, is applied to more than 96 combustion units burning biomass, coal, heavy oil and municipal waste, according to Krumme.

Krumme said the company does not disclose the names of its Fuel Chem customers because of competitive advantage concerns, but she said the list includes known, large utilities.

John Kearney, an equity analyst with Chicago-based Morningstar Inc., said China is a particularly key market because it is more than twice the size of the U.S. market. Kearney said he has high expectations for Fuel Tech, adding its Fuel Chem will drive the company's future.

The company's gross margin on 2007 sales of $80.3 million was about 53 percent.

Fuel Tech shares closed Tuesday down 8 cents at $20.30.