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

Birchtech Corp., a clean technology company specializing in sustainable air and water treatment, anticipates receiving approximately $78 million from a final judgment in a patent infringement lawsuit. U.S. District Court Judge Christopher J. Burke issued a final opinion calling for a proposed final judgment, resolving outstanding issues from a March 2024 jury verdict against refined coal companies. The court increased the original $57 million award by adding pre-judgment interest compounded quarterly at the prime rate and post-judgment interest, though it did not increase the amount based on willful infringement. Interest will accrue daily until payment is made.

The settlement concludes patent infringement lawsuits initiated in July 2019 against 43 defendants, including four major power utilities. Following a pre-trial settlement with some defendants in late 2023 and a jury trial in Delaware, Birchtech was awarded $57 million, with the judge finding willful, inducing, and contributory infringement. The company later filed additional lawsuits, which were consolidated in the Southern District of Iowa. CEO Richard MacPherson stated the decision validates the company's patented technology and is expected to significantly increase its market share in the U.S. coal-fired power fleet, potentially doubling over the next few years. The company anticipates gaining new licenses and supply contracts, typically lasting 3-5 years, as it establishes relationships with utilities using its technologies.

While the patents relate to Birchtech's clean air technologies, the proceeds are earmarked for expanding its water purification business. MacPherson said 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 unit already has $900,000 in purchase orders 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 projects with utilities.

MacPherson emphasized that with a solid core business 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 long-term value for shareholders. The final judgment is to be submitted by December 23, 2025. This development is important as it not only strengthens Birchtech's financial position and intellectual property standing but also directs substantial capital toward addressing critical water contamination issues, potentially impacting public health and utility operations nationwide.