Date: October 27, 2010
Source: Rentech, Inc. & ClearFuels Technology Inc.
ClearFuels Technology, Inc. and Rentech, Inc., which are building a waste to fuels demonstration plant in Colorado, jointly announced a cooperative deal with the U.S. Department of Energy to get the remaining $19.7 million of a $23 million grant to complete construction of the gasifier portion of the facility. The company said the award was granted upon successful completion of Budget Period 1 tasks initiated last April. Accordingly, the grant will facilitate the integration of ClearFuels' flexible and versatile biomass to synthesis gas technology with Rentech's Fisher-Tropsch Process, with the aim of demonstrating efficient, cost-effective production of certified, renewable diesel and jet fuels from clean biomass at Rentech's Product Demonstration Unit in Commerce City, Colorado.
PRESS RELEASE
Rentech and ClearFuels Integrated Bio-Refinery Project to Receive Full Construction and Operations Funding
U.S. Department of Energy Approves Remaining $19.7 Million of Funding
Rentech, Inc. (NYSE AMEX: RTK) and ClearFuels Technology Inc. (ClearFuels) jointly announced today that a cooperative agreement has been signed with the U.S. Department of Energy (DOE) to receive the remaining $19.7 million of a $23 million grant to complete construction of a demonstration scale biomass gasifier at Rentech's Energy Technology Center (RETC) in Colorado, and to integrate and operate it with Rentech's Product Demonstration Unit (PDU) for the production of renewable synthetic fuels from biomass.
"The Rentech Energy Technology Center is an impressive facility that has already produced synthetic diesel proven by Audi in its recent 1000-mile drive as a successful drop-in fuel, as well as synthetic jet fuel certified for commercial aviation and proven by United Airlines."
.The DOE selected the project in December 2009 to receive funds under the American Recovery and Reinvestment Act to validate refining technologies and help lay the foundation for full commercial-scale development of an advanced biofuels industry in the United States.
The grant is being used to manufacture and install at RETC a 20 ton-per-day ClearFuels biomass gasifier designed to produce synthesis gas from various wood waste and sugar cane bagasse feedstocks. The gasifier will be integrated with Rentech's existing PDU at the site, which uses the Rentech Process and UOP's upgrading technologies, to produce renewable drop-in synthetic jet and diesel fuels at demonstration scale.
This joint demonstration of an integrated bio-refinery is anticipated to be completed in late 2011 and will lead to the final design basis for commercial facilities that are expected to use the combined technologies. The team for the demonstration project includes ClearFuels, Rentech, URS, Linde/Hydro-Chem, Hawaiian Electric Company, National Renewable Energy Lab and Hawaii Natural Energy Institute.
Rentech has a 25% strategic ownership interest in ClearFuels, which has begun development of multiple commercial-scale biomass-to-energy projects in the southeastern United States, Hawaii and internationally. These projects are expected to use an integrated ClearFuels-Rentech design and be co-located at biomass processing facilities.
Commenting on the award, D. Hunt Ramsbottom, President and Chief Executive Officer of Rentech, said, "We are pleased that the joint bio-refinery project continues to move forward, with the support of the Department of Energy to demonstrate the integration of Rentech's and ClearFuels' technologies for the production of renewable synthetic fuels." Mr. Ramsbottom continued, "We are pleased that the DOE continues to recognize the significance of a successful demonstration of our joint technologies and the potential to deploy them at commercial-scale renewable energy projects for the production of low-carbon renewable fuels and the creation of green jobs."
Eric Darmstaedter, Chief Executive Officer of ClearFuels, commented, "The Rentech Energy Technology Center is an impressive facility that has already produced synthetic diesel proven by Audi in its recent 1000-mile drive as a successful drop-in fuel, as well as synthetic jet fuel certified for commercial aviation and proven by United Airlines." Mr. Darmstaedter continued, "We believe the integration of ClearFuels' and Rentech's technologies, partially funded by the DOE, is an example of a successful biofuels partnership on the right track to commercially viable renewable drop-in fuels from biomass at competitive prices. ClearFuels' commercial plans in Hawaii, in concert with the DOE- Hawaii Clean Energy Initiative, and on the mainland U.S., have the potential to help with energy security, rural economic development, greenhouse gas reductions, and the creation of American jobs."
About Rentech, Inc.
Rentech, Inc. (www.rentechinc.com), incorporated in 1981, provides clean energy solutions. The Company's Rentech-SilvaGas biomass gasification process can convert multiple biomass feedstocks into synthesis gas (syngas) for production of renewable fuels and power. Combining the gasification process with Rentech's unique application of proven syngas conditioning and clean-up technology and the patented Rentech Process based on Fischer-Tropsch chemistry, Rentech offers an integrated solution for production of synthetic fuels from biomass. The Rentech Process can also convert syngas from fossil resources into ultra-clean synthetic jet and diesel fuels, specialty waxes and chemicals. Final product upgrading is provided under an alliance with UOP, a Honeywell company. Rentech develops projects and licenses these technologies for application in synthetic fuels and power facilities worldwide. Rentech Energy Midwest Corporation, the Company's wholly-owned subsidiary, manufactures and sells nitrogen fertilizer products including ammonia, urea ammonia nitrate, urea granule, and urea solution in the corn-belt region of the central United States. Rentech has been recognized by Biofuels Digest as one of the 50 Hottest Companies in Bio-energy and has been named as one of the Biofuels Digest Companies of the Year for its recent innovations and achievements, particularly in aviation biofuels.
About ClearFuels Technology Inc.
ClearFuels (www.clearfuels.com) and its partners are developing advanced sustainable biorefineries that convert multiple mixed cellulosic biomass feedstocks into sustainable, high-value energy products including renewable Fischer-Tropsch (FT) diesel and jet fuel, ethanol, hydrogen and power at industry-leading yields. The ClearFuels proprietary thermochemical conversion process is based on its advanced High Efficiency Hydrothermal Reformation (HEHTR) technology for biomass-to-syngas conversion (BTG). This modular flexible BTG technology platform, in combination with various synthetic gas-to-liquid (GTL) technologies and co-location of its biorefineries at sugar mills, and at wood processing and other biomass processing facilities, provides a reduced risk, lower overall cost commercial strategy in line with ClearFuels vision for production of clean clear biofuels.
Safe Harbor
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 about matters such as the ClearFuels biomass gasification technology, the ability to integrate the gasification technology with Rentech technologies and the timing of the completion of the demonstration, the characteristics of the renewable fuels to be produced from the technologies, and ClearFuels' proposed development projects using integrated technologies. These statements are based on management's current expectations and actual results may differ materially as a result of various risks and uncertainties. Other factors that could cause actual results to differ from those reflected in the forward-looking statements include the ability of the parties to create and successfully market a combined technology offering, the financial means of Rentech and ClearFuels to build their proposed projects, fluctuations in commodities prices including the price of oil and the materials necessary to construct a project, the impact of changing government regulations on the project permitting process and the qualification of renewable fuels and factors set forth in the Company's press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech's web site at www.rentechinc.com. The forward-looking statements in this press release are made as of the date of this release, and Rentech does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.
For more information, contact:
Rentech, Inc.
Julie Dawoodjee
Vice President of Investor Relations and Communications
310-571-9800, ext. 341
ir@rentk.com.
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