The U.S. District Court for the District of Delaware issued a final opinion increasing a jury verdict to approximately $78 million for Birchtech Corp. in a patent infringement lawsuit, with the final judgment to be submitted by December 23, 2025. The decision resolves outstanding issues from the original $57 million verdict by awarding pre-judgment and post-judgment interest. CEO Richard MacPherson stated this validates the company's patented technology claims and will significantly increase market share across the U.S. coal-fired power fleet, potentially doubling over the next few years. The company anticipates gaining new licenses and supply contracts with utilities using its patented technologies for mercury emissions capture.
The settlement concludes patent infringement lawsuits dating back to July 2019 against 43 defendants, including four major power utilities and numerous refined coal companies. Following a jury trial in March 2024 where Birchtech was awarded $57 million, the company filed three separate lawsuits against 14 additional defendants in July 2024. These were consolidated in the Southern District of Iowa in December 2024, with two defendants remaining after others obtained license agreements with Birchtech. The legal resolution strengthens Birchtech's position in the clean technology sector and underscores the value of its intellectual property.
While the patents relate to Birchtech's clean air technologies business, the company plans to use the settlement proceeds to expand 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 purification 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 services to utility customers. This strategic shift leverages the company's core expertise to address growing environmental concerns.
With a solid core business built from recurring revenue in mercury emissions technologies and increasing momentum in new water purification technologies, the next 12 to 18 months will see the execution of operational catalysts that could create sustainable value for shareholders long-term. The company reports having a pipeline full of potential water treatment solutions projects with utilities as it seeks to establish new business relationships following the patent validation. This expansion into water purification represents a significant diversification for Birchtech, positioning it to tackle pressing environmental issues while capitalizing on its technological strengths.
