LONDON, April 23, 2015 /PRNewswire/ --
Overnight, the US government has created an annual $2-billion mercury control industry that Warren Buffet has already invested more than $30 million in, as the Obama administration makes the final play in its regulatory war on the $120-billion coal-fired segment of the power industry.
The EPA's new rules took effect on 16 April and curb mercury pollution from power plants, adding 28 states to the 22 states that already regulate mercury emissions. More limits are expected this summer.
The new technology required to control mercury emissions at coal-fired power plants is now where all the money is shifting.
One of the biggest winners of this new federally mandated industry is one of the smaller players - Midwest Energy Emissions Corp. (MEEC), which has already booked $40 million in annualized revenues from billion-dollar utility companies for 2016.
Ohio-based MEEC is storming the new regulatory scene with second-generation mercury radiation technology that has won five major, multi-year utility company contracts for 15 coal-fired power units.
The company boasts patented (25 worldwide), proprietary technology that allows coal-fired utilities to meet the EPA's new stringent regulations cost-effectively and with minimal disruptions.
In total, MEEC has already won $100 million in existing long-term contract revenues for 2015 through 2018, and expects to reach 40-60 energy units contracted out by the end of next year. This would potentially put MEEC's revenues in excess of $100 million by the end of 2018.
MEEC says its technology is up to 50% more efficient than anything else out there. It also says it has a 50% cost advantage over its larger competitors.
This is a small company, and its stocks appear to be undervalued, which means that investors can get in on the ground floor at the very beginning of this new $2 billion/year industry.
Small-cap, pure play pollution control technology stocks-such as Midwest Energy Emissions Corp. (OTCQB:MEEC), Calgon Carbon Corporation (NYSE:CCC), Fuel Tech Inc (NASDAQ:FTEK), Advanced Emissions Solutions, Inc. (OTCMKTS:ADES) and Albemarle Corporation (NYSE:ALB)-is the way to play this game.
Coal-burning utilities giants such as Duke Energy Corp. (NYSE:DUK) and Southern Co. (NYSE:SO) have been fighting these new regulations tooth and nail, but now it's inevitable-so, too, is the new $2 billion/year mercury remediation industry.
SOURCE Oilprice.com
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