Wieland Davco has signed a contract to construct Advanced Emissions Solutions, (ADES) new granular activated carbon (GAC) facility in Louisiana, US.
The facility will be located at ADES’ Red River plant in Coushatta.
Construction operations have begun, with completion anticipated by the fourth quarter (Q4) of 2024.
Wieland is carrying out the contract on a cost-plus basis.
ADES has estimated the total cost of construction and equipment to be between $45m and $50m, which is noted to be a 20% increase from previous estimates.
This cost escalation is attributed to higher-than-anticipated construction and equipment expenses, influenced by inflation and timing issues.
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ADES however, notes that these additional costs can be managed through its existing capital, expected cash flow in 2024, and cost reductions in other areas.
Wieland vice-president and regional director Ryan Roberts said: “We have a long pedigree of successful construction in Louisiana and we are delighted to have been successfully chosen to build this project at Red River.
“We are dedicated to excellence in construction for our customers and we look forward to delivering on this with ADES.”
ADES has also confirmed that construction work at its Corbin facility in Kentucky, US, is on track and within budget.
This site is set to supply recycled bituminous coal waste feedstock for the Red River project.
Commissioning activities at Corbin are scheduled to begin in March 2024.
ADES COO Deke Williamson said: “With Corbin basically complete, today marks the start of a very busy year for ADES at Red River and I am pleased that we will be joined in this endeavour by our partners at Wieland.
“Together with the broader team, I am looking forward to delivering this project safely, on time and on budget.”