Rentech and Denbury Resources to Put Captured Carbon Dioxide to Work in Enhancing U.S. Oil Production
Rentech and Denbury Resources to Put Captured Carbon Dioxide to Work in Enhancing U.S. Oil Production
09:00 a.m. 06/25/2007 Provided by
LOS ANGELES, Jun 25, 2007 (BUSINESS WIRE) -- Rentech, Inc. (RTK) today announced an agreement with Denbury Resources Inc. (DNR) for the sale, transport and use of all captured carbon dioxide from Rentech's proposed ultra-clean synthetic fuels plant to be built in Natchez, Mississippi for oil recovery efforts in the region.
Under the long-term agreement, Denbury will build a pipeline and transport the captured carbon dioxide produced as a byproduct at the Rentech facility. Denbury will then inject the captured carbon dioxide underground into depleted oil fields to produce otherwise unrecoverable oil reserves. Rentech and Denbury expect to obtain and share the value of any federal, state or voluntary carbon dioxide emissions reduction credits available as a result of these activities.
"This agreement extends Rentech's efforts to ensure that our Natchez project and synthetic fuel production technologies accomplish our goals of reducing emissions by producing cleaner transportation fuel and trapping carbon dioxide, and filling the gap in alternative fuel production. We have created a win for the environment, domestic energy security, and our economy," said D. Hunt Ramsbottom, Rentech's President and Chief Executive Officer.
"We are pleased to be partnering with Denbury, a company that shares our goal of a clean, reliable energy future," Ramsbottom said.
Gareth Roberts, Chief Executive Officer of Denbury, commented on the transaction saying, "We plan to use the CO2 produced from this proposed plant to further expand our tertiary operations in the Gulf Coast area. By injecting this CO2, a by-product of the proposed plant, into mature oil fields, we not only help to protect the environment by reducing greenhouse gases, but also produce additional oil to help reduce our nation's need for imported oil."
Based on a study conducted by the Department of Energy's National Energy Technology Laboratory, with carbon capture and sequestration, the carbon dioxide emissions from the production of fuels from the Fischer-Tropsch process are comparable to or lower than those generated in the production of petroleum-derived diesel.
Using the patented Rentech process, the Natchez Strategic Fuels and Chemicals Center will be designed to use petroleum coke, coal and biomass as feedstocks. The project will initially produce 25,000 barrels per day of ultra clean synthetic fuels and specialty chemicals and will be expandable to 50,000 barrels per day.
About Rentech, Inc.
Rentech, Inc. ( www.rentechinc.com ) was incorporated in 1981 to develop technologies that transform under-utilized domestic energy resources into valuable and clean alternative fuels and chemicals. These energy resources include coal, petroleum coke, biomass and municipal solid waste. The Company has developed an advanced derivative of the well-established Fischer-Tropsch, or FT process, for manufacturing ultra-clean diesel fuel and other fuel products.
About Denbury Resources Inc.
Denbury Resources Inc. ( www.denbury.com ) is a growing independent oil and gas company. Denbury is the largest oil and natural gas operator in Mississippi, owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River, and holds significant operating acreage onshore Louisiana, Alabama, in the Barnett Shale play near Fort Worth, Texas, and properties in Southeast Texas. Denbury's goal is to increases the value of acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, including secondary and tertiary recovery operations.
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