Chara Solutions (NYSE: CHRA) shares are up over 114% premarket on Friday after the company said it has been awarded a marketing contract by Dominion Energy to use up to 8.1 million tons of reclaimed ponded coal ash at its Chesterfield Power Station in Chester, VA.
Charah’s stock price is trading at $5.81, after a 114.39% move from Thursday’s close at $2.71. The last time the company's stock price was at this level was July 2019.
In 2019, legislation was passed in Virginia that requires Dominion Energy to remove approximately 15 million cubic yards of coal ash currently stored in two coal ash ponds at Chesterfield Power Station within 15 years.
The coal ash needs to be recycled or placed in a lined landfill that adheres to Virginia’s regulations, and so, the company have contracted Charah for the project effective 2021 to 2032.
The agreement will see Charah install processing and transportation infrastructure to facilitate rail transportation of the ash from Chesterfield Power Station.
The ash will be distributed through Charah's materials network, a system of more than 40 locations which provides supplementary cementitious materials for cement and concrete producers.
“Many utilities, like Dominion Energy, are experiencing an increased need to retire and decommission older generating assets while improving the environment. We have been proud to partner with Dominion Energy on their sustainability efforts for many years and are delighted to extend our relationship at this site for the next 12 years,” said Scott Sewell, Charah’s President and CEO.