Fuel Tech Awarded Air Pollution Control Orders Totaling $5.1M; Includes Orders from Recently Announced Alliance Agreement

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, today announced receipt of air pollution control orders totaling $5.1 million.

The largest of these orders, placed by a major domestic electric utility, represent nitrogen oxide (NOx) reduction projects on two large coal-fired boilers utilizing HERT™ High Energy Reagent Technology™ systems in combination with Rich Reagent Injection (RRI) technology. Equipment deliveries are scheduled for the first quarter of 2011. These are the first orders as part of a larger alliance agreement which calls for the potential supply of multiple NOx control systems.

HERT systems utilize Selective Non-Catalytic Reduction (SNCR) for NOx control. RRI is an SNCR-type process in which a NOx reducing agent, such as urea, is added to a staged lower furnace, where the combustion zone’s fuel-rich region and elevated gas temperatures create an ideal environment for NOx reduction. RRI technology is licensed from Reaction Engineering International and Electric Power Research Institute.

In addition to the foregoing, an order was received for a NOxOUT^® SNCR project on three municipal waste combustors at a domestic municipal solid waste facility. Equipment deliveries for this project are scheduled for the fourth quarter. Lastly, an order for additional equipment on a previously announced air pollution control project was received.

Douglas G. Bailey, Chairman, President and Chief Executive Officer, commented, "We are pleased to announce our first orders as a result of our recently announced alliance agreement. The exclusive four-year arrangement contemplates the supply of SNCR systems and related services for as many as 12 coal-fired generating units. We look forward to working with this valued client to meet their compliance plans and anticipate additional orders in the future.”

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 Over-Fire Air systems - and post-combustion NOx control approaches, including NOxOUT^® and HERT™ SNCR systems as well as systems that incorporate ASCR™ (Advanced Selective Catalytic Reduction), CASCADE™, ULTRA™ 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 operational issues associated with 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 installed on over 90 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste.

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.