And so it begins....sulfur-free diesel/naphtha from stranded natural gas.
Rentech Signs MOU for GTL License in Bolivia
DENVER, June 28 /PRNewswire/ -- Rentech, Inc. (Amex: RTK - news) today signed a Memorandum of Understanding (``MOU'') with GTL Bolivia S.A. (``GTLB'') outlining general terms and conditions pursuant to which Rentech will grant GTLB a license of Rentech's gas-to-liquids (``GTL'') technology. GTLB is a newly formed company whose principal shareholder is the Deane Group, a private U.S.-based company that operates various business ventures owned by Mr. Disque D. Deane.
After execution of the License Agreement, GTLB intends to begin the process of designing a 10,000 barrel-per-day GTL plant to be sited in Bolivia. It is expected that the final license agreement, which has yet to be negotiated, could grant GTLB the right to operate up to an additional 50,000 barrels per day using the Rentech GTL technology. The MOU sets forth a standard and customary license fee that is expected to be in the range of $1,000 per daily barrel.
Mr. Deane, President of GTL Bolivia, is also chairman of The Deane Group, private merchant bankers, and Bolfarm S.R.L, a 75,000-acre Bolivian industrial agricultural concern. Mr. Deane holds degrees from Duke University and New York University. He has held numerous senior positions and directorships at such companies as Eastman Dillon Union Securities, Lazard Freres & Co, Corporate Property Investors (Founder), RCA Corporation, and Sun Chemical. He has held various international public sector positions advising governmental entities including Ukraine Development Bank, China National Petroleum Corporation and the Russian Ministry of Energy. He is a Trustee of Duke University and Chairman of the Deane Laboratory at Duke University. Past trusteeships include Rockefeller University, Harvard School of Public Health Internet Project and the Carol Deane Family Trust. Mr. Deane is a Director of the Golder Western and Mediterranean Growth Fund, Ltd. and is also Director of Golder International Ltd., USA.
Commenting on the MOU, Dennis L. Yakobson stated, ``We are delighted to begin the process of working with Mr. Deane and GTL Bolivia to make gas-to-liquids a reality in Bolivia. Bolivia offers a unique opportunity to deploy GTL. Indigenous supplies of natural gas exceed the country's demand and at the same time, there is an insufficient local supply of transportation fuels such as diesel. A 10,000 barrel-per-day GTL plant in Bolivia could make an important contribution to that country. GTL diesel could have a positive environmental impact and help reduce pollution in Bolivia. The plant could also provide some 300 high-paying construction jobs for about two years and about 55 permanent professional and technical positions once a plant is operational. Mr. Deane's long association with Bolivia and his intimate knowledge of the country and its people will be invaluable in the development of this project.''
Mr. Luis C. Kinn, who recently left Schlumberger after 20 years to become General Manager of GTL Bolivia, will be making a presentation at the CWC Associates Global GTL Conference on June 28th, 2001 at the Langham Hilton in London, England. Mr. Yakobson, a keynote speaker at the same conference, will also discuss the merits of GTL projects like that planned by GTLB.
Rentech, Inc. is the developer and licensor of a patented and proprietary Fischer-Tropsch, gas-to-liquids process, for the conversion of synthesis gas made from natural gas, industrial off-gas, or solid or liquid carbon-bearing materials into high-value fuels, products and chemicals. These products include cleaner burning, sulfur- and aromatic-free diesel fuel, naphtha, waxes and fuel for fuel cells.
Certain information presented herein may contain ``forward-looking'' statements as defined by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements herein. For more information concerning factors that could cause such a difference, see the Company's annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Although Rentech believes its statements to be reasonable, investors are cautioned that such forward-looking statements involve risk and uncertainties. The Company undertakes no obligation to publicly release the result of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
For more information please contact: Mark Koenig, Director of Investor Relations, Rentech, Inc. at 303-298-8008, or by E-mail at mkir@rentk.com, or see the Company's web site at: www.rentechinc.com.
SOURCE: Rentech, Inc. |
