Birchtech Secures $78M Patent Settlement to Fund Water Purification Expansion

Birchtech Corp. (OTCQB: BCHT), a clean technology company specializing in sustainable air and water treatment, announced a final court decision in its patent infringement lawsuit, with expected proceeds of approximately $78 million. The U.S. District Court Judge Christopher J. Burke issued a final opinion and called for a proposed final judgment following a March 2024 jury verdict against refined coal companies. The court's decision resolved outstanding issues, including motions affecting the final calculation of the judgment amount. While the verdict amount was not increased based on willful infringement, the judgment was increased through pre-judgment interest compounded quarterly at the prime rate and post-judgment interest.

Richard MacPherson, CEO of Birchtech, stated that the decision validates the company's patented technology claims and will enable significant market share growth across the U.S. coal-fired power fleet. He anticipates doubling market share over the next few years as the company establishes business relationships with utilities using its patented technologies for mercury emissions capture. This is expected to result in new licenses and supply contracts, typically lasting three to five years. The final judgment, to be submitted by December 23, will accrue interest daily until paid.

The settlement concludes patent infringement lawsuits initiated in July 2019 against 43 defendants, including four major power utilities and numerous refined coal companies. Birchtech reached a pre-trial settlement with defendants AJ Gallagher, DTE, and a CERT defendant in late 2023. After a jury trial in the U.S. District Court of Delaware with remaining CERT defendants, the company was awarded $57 million, with findings of willful, inducing, and contributory infringement. In July 2024, Birchtech filed three separate lawsuits against 14 defendants, which were consolidated and centralized in the Southern District of Iowa in December 2024. The Iowa lawsuit currently involves two remaining defendants, following license agreements with others.

Proceeds from the settlement will be directed toward expanding Birchtech's water purification business, despite the patents relating to its clean air technologies. MacPherson explained that the funds will help the company aggressively advance new technologies to remove harmful contaminants like PFAS, or "forever chemicals," from drinking water more efficiently, sustainably, and affordably than current alternatives. The water purification unit already has purchase orders totaling $900,000 from a mid-Atlantic power utility and has partnered with Civil & Environmental Consultants Inc. to provide testing for utility customers. The company reports a pipeline of potential water treatment solutions projects with utilities.

MacPherson emphasized that with a solid core business built from recurring revenue in mercury emissions technologies and growing momentum in water purification, the next 12 to 18 months will involve executing operational catalysts to create sustainable long-term value for shareholders. For more information, visit https://www.birchtechcorp.com.