Fuel Tech Awarded Air Pollution Control Orders Totaling $7.4 Million

Contracts Include First-Ever Client in Data Center Power Market

WARRENVILLE, Ill.–(BUSINESS WIRE)–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 the
receipt of multiple air pollution control (APC) contracts from customers
in the US and China. These awards have an aggregate value of
approximately $7.4 million.

“We are very pleased to end the year on such a strong note,” said
Vincent J. Arnone, Chairman, President and Chief Executive Officer. “We
have announced more than $36 million of new orders in 2017, making it
one of the best years for new business development in our recent
history. Moreover, we have successfully executed against a set of
broader strategic initiatives that have improved our backlog, reduced
costs, narrowed our losses, and positioned Fuel Tech for long-term,
sustainable growth.”

Fuel Tech received an order in the US involving a new market application
for its Selective Catalytic Reduction (SCR) and urea reagent
technologies to reduce nitrogen oxide (NOx) emissions. The project – a
domestic data center – includes multiple SCR systems where natural gas
is used for power generation. The scope includes Fuel Tech’s SCR and UDITM
Urea Direct Injection technologies, along with ancillary systems to
reduce NOx emissions from backup power sources. Fuel Tech’s UDI process,
similar to our ULTRA® technology, provides the safe use of
urea reagent where SCR is used to reduce NOx, eliminating the
hazards associated with the transport, storage and handling of anhydrous
or aqueous ammonia. Equipment deliveries are expected to be completed in
the fourth quarter of 2018.

“SCR technology continues to gain a stronger position in our technology
portfolio, and this first-ever contract with a data center client
reflects the flexibility and adaptability of our emissions control
solutions portfolio,” said Mr. Arnone.

“Industry research estimates that the global data center power market is
expected to expand at a compounded annual growth rate of nearly 13%
through 2021, and we view the reliability and availability requirements
of the SCR and UDI systems as critical to customer needs. We have a
history of industrial SCR projects using UDI technology in the steel and
chemical markets, and have recently deployed UDI system applications in
China. We view UDI as a complement to our established ULTRA technology.
UDI can be a good fit for smaller industrial systems, including those
with multiple SCR reactors. Through our ongoing global business
developments efforts, we are well-positioned to pursue those
opportunities that leverage our ability to provide safe, cost-effective
environmental and emission control solutions for units utilizing a
variety of fuel sources.”

Three orders were also received for ULTRA systems that will be installed
on industrial units in China being retrofitted with SCR technology.
Delivery of these systems is scheduled for the first quarter of 2018. An
additional contract in China was received for NOxOUT®
Selective Non-Catalytic Reduction (SNCR) systems for two utility
coal-fired boilers. Deliveries for these systems will be completed by
the fourth quarter of 2017. Fuel Tech’s SNCR technology is a proven
solution as combustion unit owners look to comply with more stringent NOx
control requirements.

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 and post-combustion
NOx control approaches, including NOxOUT®,
HERT™, and Advanced SNCR systems, ASCR™ Advanced Selective Catalytic
Reduction systems, and I-NOx® Integrated NOx
Reduction Systems, which utilize various combinations of these systems,
along UDI™ Urea Direct Injection system for SCR reagent supply, and the
ULTRA® process for safe ammonia generation. These
technologies have established Fuel Tech as a leader in NOx
reduction, with installations on over 900 units worldwide.

Fuel Tech’s technologies for particulate control include Electrostatic
Precipitator (ESP) products and services including complete turnkey
capability for ESP retrofits, with experience on units up to 700 MW.
Flue gas conditioning (FGC) systems include treatment using sulfur
trioxide (SO3) and ammonia (NH3) based
conditioning to improve the performance of ESPs by modifying the
properties of fly ash particles. Fuel Tech’s particulate control
technologies have been installed on more than 125 units worldwide.

The Company’s FUEL CHEM® technology revolves around the
unique application of chemicals to improve the efficiency, reliability,
fuel flexibility, boiler heat rate, and environmental status of
combustion units by controlling slagging, fouling, corrosion, opacity
and improving boiler operations. The Company has experience with this
technology, in the form of a customizable FUEL CHEM program, on over 110
units.

Fuel Tech also provides a range of services, including boiler tuning and
selective catalytic reduction (SCR) optimization services. 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.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” as defined in
Section 21E of the Securities Exchange Act of 1934, as amended, which
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and reflect Fuel Tech’s current
expectations regarding future growth, results of operations, cash flows,
performance and business prospects, and opportunities, as well as
assumptions made by, and information currently available to, our
management. Fuel Tech has tried to identify forward-looking statements
by using words such as “anticipate,” “believe,” “plan,” “expect,”
“estimate,” “intend,” “will,” and similar expressions, but these words
are not the exclusive means of identifying forward-looking statements.
These statements are based on information currently available to Fuel
Tech and are subject to various risks, uncertainties, and other factors,
including, but not limited to, those discussed in Fuel Tech’s Annual
Report on Form 10-K in Item 1A under the caption “Risk Factors,” and
subsequent filings under the Securities Exchange Act of 1934, as
amended, which could cause Fuel Tech’s actual growth, results of
operations, financial condition, cash flows, performance and business
prospects and opportunities to differ materially from those expressed
in, or implied by, these statements. Fuel Tech undertakes no obligation
to update such factors or to publicly announce the results of any of the
forward-looking statements contained herein to reflect future events,
developments, or changed circumstances or for any other reason.
Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including those detailed in Fuel Tech’s filings
with the Securities and Exchange Commission.

Contacts

Fuel Tech, Inc.
Jim Pach, 630-845-4500
Acting Principal
Financial Officer and Controller
or
The Equity Group Inc.
Devin
Sullivan, 212-836-9608
Senior Vice President