First U.S. Ultra Clean Synthetic Fuels and Fertilizer Facility Moves Forward. Rentech and CB&I Enter Into Services Agreement Relating to EPC Contract.
Monday July 2, 9:00 am ET
LOS ANGELES--(BUSINESS WIRE)--Rentech, Inc. (AMEX:RTK - News) today announced that it has entered into a services agreement with CB&I (NYSE:CBI - News) relating to the conversion of the Rentech Energy Midwest Corporation facility ("REMC") in Illinois from natural gas to a gasification-based fertilizer and ultra-clean synthetic fuels facility.
Under the terms of the agreement, CB&I will perform engineering and design services for Phase 1 of the conversion which will involve converting the feedstock at REMC from natural gas to coal using gasification technology. Rentech and CB&I will also take the steps necessary to develop a lump-sum engineering, procurement and construction (EPC) contract.
During Phase 1A of the conversion, equipment will be added to produce ultra clean fuels from gasified coal using Rentech's proprietary and patented advanced derivative of the Fischer-Tropsch process. Upon the expected completion of the plant conversion by 2010, Rentech believes REMC will be the first ultra clean synthetic fuels and fertilizer facility in the United States. REMC expects to produce at least 1,250 barrels per day or 17.8 million gallons of ultra clean Fischer-Tropsch fuels annually. The facility is also projected to produce approximately 545,000 tons of ammonia and other nitrogen fertilizer products per year and to be developed as a "carbon capture ready" facility. Rentech is evaluating marketing opportunities for commercial uses of the captured carbon dioxide.
"We are very pleased to welcome CB&I into the REMC conversion process. CB&I's experience and expertise in constructing gasification and Fischer-Tropsch projects will serve us well and help us to achieve a cost effective and successful completion of our project," said Doug Miller, Rentech's Executive Vice President and Chief Operating Officer.
"We welcome the opportunity to work with Rentech as they commercialize their clean synthetic fuels technology," said Ronald Blum, CB&I's Executive Vice President. "CB&I was involved in a pioneering coal-to-liquids project in South Africa in the late 1970s and other subsequent gasification projects. We look forward to expanding our expertise in clean fuels projects."
"This new facility represents a significant step forward for several industries, including fertilizer, farming, biofuels and transportation, and serves as a model of how our technology can help solve multiple problems," said D. Hunt Ramsbottom, Rentech's President and Chief Executive Officer.
"Increased natural gas prices in the U.S. have led to the closure of nearly 30 domestic fertilizer production facilities and have resulted in an approximately 50 percent reduction in domestic fertilizer production. REMC will supply domestically produced affordable fertilizer to the farming industry which not only helps lower costs for farmers and the food industry, but also aids the biofuels industry that use plants and crops as feedstocks," explained Mr. Ramsbottom. "In addition, the facility will produce ultra-clean synthetic fuels, which are critical in increasing domestic fuel sources."
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 CB&I
CB&I executes more than 500 projects each year and is one of the world's leading engineering, procurement and construction companies, specializing in projects for customers that produce, process, store and distribute the world's natural resources. With more than 60 locations and approximately 13,000 employees throughout the world, CB&I capitalizes on its global expertise and local knowledge to safely and reliably deliver projects virtually anywhere. Information about CB&I is available at www.CBI.com.
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 Company's services agreement with CB&I and the conversion of Rentech Energy Midwest Corporation (REMC) with CBI. The outcome of the project cannot be guaranteed and significant additional funds would need to be raised to complete the project. These statements are based on management's current expectations, and actual results may differ materially as a result of various risks and uncertainties, including Rentech's ability to: obtain financing for the conversion of REMC; obtain necessary working capital; obtain reasonably priced equipment; obtain customers and favorable prices for products; meet the expected schedule for the various phases of the project; and other 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 July 2, 2007, 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.
Contact:
Rentech, Inc.
Julie Dawoodjee, 310-571-9800, extension 341
Director of Investor Relations
ir@rentk.com
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Source: Rentech, Inc.
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