Core Viewpoint - Arq, Inc. is on track to commence initial production of its Granular Activated Carbon (GAC) in Q1 2025, with a ramp-up to a full run-rate of 25 million pounds targeted for H2 2025, while also progressing well in customer negotiations for GAC contracts [1][2][3]. GAC Production and Ramp-Up Timeline - Initial production of GAC at the Red River facility is expected to start in Q1 2025, with a ramp-up to reach an annual run-rate of 25 million pounds by H2 2025 [2]. - The company anticipates gaining visibility on potential capacity enhancements once full production capacity is achieved [2]. GAC Customer Engagement & Contract Update - Arq is making significant progress in commercial discussions for GAC, engaging with various customers, including those related to PFAS and biogas [3]. - The company is strategically holding back on additional contract commitments to diversify end-use markets and prioritize profitability over volume [3]. - Contracting and sales will align with the production ramp-up timeline in H2 2025 [3]. Capital Expenditures & Cost Management - Capital expenditures for the GAC expansion at Red River in Q4 2024 were slightly above expectations, totaling approximately $80 million for the full year 2024 [4]. - The increase in costs is attributed to additional professional services and increased piping needs, but the company does not expect similar overruns for the second phase of GAC development [4]. - Arq is evaluating opportunities for cost optimization and efficiency gains as production scales [4]. Commencement of Legal Proceedings - The company has initiated legal proceedings against its design firm for alleged negligence and breach of contract, which it claims resulted in increased costs and delays [5]. - Arq is seeking damages related to these increased costs and delays but believes that product performance will not be impacted [5]. Upcoming Financial Results - Arq plans to release its Q4 and full-year 2024 financial results on March 5, 2025, along with details for an upcoming earnings conference call [6].
Arq Provides Update on Transformational GAC Project