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Calgon Carbon Corporation (CCC - Analyst Report) and its distributor Brenntag Canada Inc. have won a contract to supply second-generation advanced FLUEPAC powdered activated carbon to a large Canadian electricity generator. The contact is valued between $25 million and $30 million.

The contract will be in place through December 2015 and is an extension of an existing supply agreement for a first-generation advanced FLUEPAC product. Calgon Carbon and Brenntag sealed the contract after undergoing a rigorous testing program, where many of Calgon carbon’s products were tested against competitors’ products.

FLUEPAC STF was found to provide the best overall value solution to the electricity generator. In more than 20 tests, FLUEPAC demonstrated about 50% to 70% less carbon usage compared with competitors’ products and also consistently met rigorous treatment objectives.

The contract instills customer confidence in quality and reliability of Calgon Carbon’s advanced FLUEPAC products. The company also remains firm with its decision to invest in the development of advanced products that deliver more value. This combined with Brenntag's local personnel and infrastructure helped them to grab the contract.

Last month, Chemviron Carbon, the European operating group of Calgon Carbon, won a 10-year contract from Thames Water to reactivate spent activated carbon used to treat drinking water. Thames is the largest provider of drinking water and wastewater services in the UK. The contract value will depend on the amount of carbon reactivated on an annual basis, which is expected to be around 11 million lbs (5,000 million tons).

Calgon Carbon retains a Zacks Rank #3 (Hold).

 Other companies in the pollution control industry worth considering are Progressive Waste Solutions Ltd. (BIN - Snapshot Report), Pure Cycle Corporation and Sharps Compliance Corp (SMED - Snapshot Report). All of them hold a Zacks Rank #2 (Buy).

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