China Issues Policy on NOx Emissions

Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advanced engineering solutions for the optimization of combustion systems and emissions control in utility and industrial applications, provides the following summary on the recently announced nitrogen oxide (NOx) emission control policy from the Ministry of Environmental Protection of the People’s Republic of China.

On January 27, 2010, the Ministry of Environmental Protection of the People’s Republic of China issued their "Notice of Fossil-Fired Power Plant NOx Emission Prevention and Treatment Policy” (the "Notice”). This official government policy directive (the "Policy”) sets the framework for NOx reduction actions to be taken under the nation’s 12^th Five Year Plan, which begins January 1, 2011. It is expected that detailed regulations which will implement these policies will be announced later by the appropriate government agencies. A translation of the Notice is posted on our website at www.ftek.com.

In general, the Policy set forth in the Notice apply to all coal-fired power plants and co-generation units that are 200 MW or larger, except in designated "Focus Areas” (areas around Beijing, Shanghai, and Guangdong) where it applies to all units regardless of size. For the units covered by the Policy, all new, rebuilt or units that have undergone expansion should install Low-NOx Combustion Technologies (such as Low-NOx Burners and Over-Fire Air systems) as a first step. On operating units, if the NOx emission levels still cannot meet the emission standard, then the unit should install flue gas de-NOx technology. Major flue gas de-NOx technologies called out in the Notice include Selective Catalytic Reduction (SCR), Selective Non-Catalytic Reduction (SNCR), and SNCR-SCR systems. The policy then breaks down the recommended technologies for the different unit situations. For new, rebuilt or units that have undergone expansion modifications, the preferred technology is SCR if the unit is larger than 600 MW. For units 600 MW and smaller the preferred technologies are SCR and SNCR-SCR. For operating units that do not fall into the prior category, the preferred de-NOx technologies (either SCR, SNCR-SCR, SNCR or other) depend on the age of the unit and the type of coal burned. For systems which require ammonia as a reducing agent for SCR, SNCR-SCR and SNCR, there are special policy guidelines depending on the unit location. For all units within the special Focus Areas, the preferred reducing agent is urea.

John F. Norris Jr., President and Chief Executive Officer, commented, "We believe Fuel Tech’s suite of technologies is well suited and well proven in this Chinese market. Our ULTRA™ systems provide safe urea-to-ammonia conversion for SCR and SNCR-SCR technologies. Our NOxOUT CASCADE^® and Advanced SCR™ systems are ideal for the SNCR-SCR application areas. Our NOxOUT^® and HERT™ SNCR systems are proven performers in the SNCR area, while our Low-NOx Burners and Over-Fire Air systems are among the best in cost-effective NOx prevention as the first step taken by most power plants around the world.”

About Fuel Tech

Fuel Tech is a leading technology company engaged in the worldwide development, commercialization and application of state-of-the-art proprietary technologies for air pollution control, process optimization, and advanced engineering services. These technologies enable customers to produce both energy and processed materials in a cost-effective and environmentally sustainable manner.

The Company’s nitrogen oxide (NOx) reduction technologies include advanced combustion modification techniques - such as low NOx burners and overfire air systems - and post-combustion NOx control approaches, including NOxOUT^® and HERT™ SNCR systems as well as systems that incorporate NOxOUT CASCADE^®, ULTRA™, Advanced SCR™ and NOxOUT-SCR^® processes. These technologies have established Fuel Tech as a leader in NOx reduction, with installations on over 550 units worldwide, where coal, fuel oil, natural gas, municipal waste, biomass, and other fuels are utilized.

The Company’s FUEL CHEM^® technology revolves around the unique application of chemicals to improve the efficiency, reliability, fuel flexibility and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter (PM_2.5), carbon dioxide and NOx. This technology, in the form of a customizable FUEL CHEM program, is being applied to over 85 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste. A breakdown of the nature of these customer units is posted on the Company’s website.

Fuel Tech also provides a range of combustion optimization services, including airflow testing, coal flow testing and boiler tuning, as well as services to help optimize selective catalytic reduction system performance, including catalyst management services and ammonia injection grid tuning. In addition, flow corrective devices and physical and computational modeling services are available to optimize flue gas distribution and mixing in both power plant and industrial applications.

Many of Fuel Tech’s products and services rely heavily on the Company’s exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. These capabilities, coupled with the Company’s innovative technologies and multi-disciplined team approach, enable Fuel Tech to provide practical solutions to some of our customers’ most challenging problems. For more information, visit Fuel Tech’s web site at www.ftek.com.

This press release may contain statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Fuel Tech files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.