Arq Contracts Additional Production for its Granular Activated Carbon (GAC) Product

Core Viewpoint - Arq, Inc. has secured significant contracted volume for granular activated carbon (GAC) from its Red River facility, indicating strong market demand and confidence in its products [1][2][5]. Company Developments - The company has contracted over 50% of the Red River facility's nameplate capacity, which is 25 million pounds per annum, translating to 13 million pounds of annual contracted volume [8]. - Construction at the Red River facility is on schedule for first commercial production by the end of 2024, with capital requirements estimated at $60-70 million for the expansion project [5][8]. - Ongoing contract negotiations are progressing positively, with expectations to fully contract the facility's capacity before production begins [2][5]. Market Position - Arq is positioned as the only vertically integrated producer of activated carbon products in North America, providing a reliable domestic supply of high-demand products [6]. - The company emphasizes the limited supply of high-quality GAC in the market, which supports its growth strategy and pricing power [2][8]. Financial Implications - The pricing for GAC contracts remains attractive, significantly higher than the company's average powdered activated carbon (PAC) pricing, which is expected to enhance revenue and expand margins [8].