Birchtech dismisses all claims against one utility

Executive Summary

• Birchtech Corp. has entered into a non-exclusive license agreement with a large regional coal-fired power utility, marking the fifth utility to reach such an agreement from the consolidated lawsuits pending in Iowa.
• The agreement includes a one-time license fee, though specific financial terms are withheld due to confidentiality and ongoing litigation.
• As a result of this settlement, Birchtech has dismissed all claims against this specific utility, while litigation continues against remaining defendants in the consolidated Iowa actions.

Key Details

• Agreement Type: Non-exclusive license agreement for patented mercury emission reduction technologies (specifically the patented SEA technology).
• Counterparty: A large regional coal-fired power utility (name withheld due to confidentiality).
• Consideration: One-time license fee; specific amount not disclosed.
• Litigation Impact: Dismissal of all claims against this specific utility in the consolidated lawsuits currently pending in Iowa.
• Historical Context:
  • This is the fifth utility to enter into a license agreement from the consolidated Iowa lawsuits.
  • Since 2019, Birchtech has established 13 license and/or supply agreements with coal-fired utilities.
  • Nine of these utilities were previously named as defendants in the 2019 and 2024/2025 lawsuit filings.
• Remaining Litigation: Claims continue against remaining defendants in the consolidated Iowa actions. The company awaits the final ruling from a March 2024 jury trial in the Delaware District Court.
• Strategic Rationale: CEO Richard MacPherson describes the approach as "business-first," aiming to generate cash to drive new technologies in water treatment and support growth initiatives. Licensees can opt for lower mercury emissions and operational efficiencies, with potential for future direct supply.

Notable Quotes

• "Offering defendants licensing agreements continues to yield positive results following our success in the last year's jury trial, providing a meaningful source of cash to drive forward new technologies in water treatment, underpinning significant new growth initiatives." — Richard MacPherson, CEO
• "This business-first approach includes a negotiated licence fee based on our calculation of the utility's existing and prior usage of our patented SEA technology." — Richard MacPherson, CEO