Interesting possible application of this technology for future fuel cells. Hydrogen Burner Technology (HBT) has been working with the military to develop diesel fuel reformers for some time now. Will this modular on-board reformer be the Holy Grail we've been looking for? With the infrastructure for diesel fuel distribution already in place, this could be a significant advance.
<<The agreement with Rentech will provide additional opportunities for the application of Hydrogen Burner Technology's on-board reformers to provide clean burning fuels for the use in fuel cells. The naphtha and diesel fuel produced in Rentech's iron based Fischer-Tropsch technology, being free of sulfur, aromatics and metals, are ideal fuels for the "advanced fuel cell" concept currently being developed for use in transportation and utility vehicles.>>
Rentech and Phoenix Gas Systems Jointly Announce Agreement to Develop Breakthrough Small Scale Gas-To-Liquids Plants
PR Newswire - March 30, 1999 10:15
DENVER, March 30 /PRNewswire/ -- Rentech, Inc. (Nasdaq: RNTK) announced today the signing of an exclusive agreement with Phoenix Gas Systems, LLC (PGS) of Long Beach, CA to develop a modular system for the production of liquid hydrocarbons from natural gas and other carbon bearing materials. Rentech is the developer, marketer and licensor of a patented and proprietary process for the conversion of gases as well as solid and liquid carbon bearing materials into super clean high value fuels, products and chemicals. These products include cleaner burning, sulfur free, aromatic free diesel fuel (Ecodiesel), naphtha and waxes. The process is known as the Fischer-Tropsch (FT) process or Gas-to-Liquids (GTL).
PGS is a wholly owned subsidiary of Hydrogen Burner Technology (HBT) also in Long Beach, California. PGS holds the worldwide license to produce, market and utilize the patented Under-oxidized Burner (UOB(TM)) technology developed by HBT in industrial applications. Through partial oxidation combustion the cost-effective, modular UOB(TM) reactor converts natural gas and other hydrocarbon bearing feedstocks into synthesis gas.
Synthesis gas is the necessary component for all Fischer-Tropsch (FT) processes including the Rentech Process technology. The combining of a PGS/UOB(TM) syngas generator with Rentech's FT technology could potentially provide customers with modular systems on a cost effective basis capable of producing up to 1000 barrels per day or less of high quality FT fuels.
Normally, Fischer-Tropsch (FT) plants rely on very large and expensive synthesis gas generators on the front end of the process. This accounts for 60 percent of the total system costs of making FT products. These costs have been a barrier in the development of small scale FT, raising questions about the commercial viability of such a packaged system. Rentech and PGS plan to demonstrate through the venture that small scale, cost-effective, environmentally friendly FT facilities can be achieved.
Under the terms of agreement Rentech and PGS will work together to develop a modular plant design. If the modular system proves both technically and economically feasible, the companies will move forward with an organization to produce and market the UOB(TM)/Rentech system. The companies will identify key markets for the recovery of stranded assets, such as flare gas from oil production, and will share in the profits of the sales of these systems. The feasibility study and conceptual engineering work phases of the program will begin immediately. The companies have not established a time frame for completion of the entire program.
The application of the UOB(TM)/Rentech system for remote and stranded gas could prove to be economically significant. The FT industry has not been able to provide cost effective solutions for smaller quantities of remote or stranded natural gas. Worldwide applications for a cost-effective modular system, capable of producing up to 1000 barrels per day or less, number in the thousands. Uses include: oil fields where the flaring of natural gas is outlawed or flaring is monetarily penalized; natural gas that is now reinjected into oil wells but interferes with the oil production from the well; barge mounted FT applications for offshore drilling platforms where size constraints and safety are key issues, and, mobile units for small gas fields where larger FT processes would not be appropriate.
Along with its potential economical advantages the modular system is environmentally attractive. It will reduce carbon dioxide (greenhouse gas) emissions from the flaring process while producing a valuable clean-burning liquid fuel. The agreement with Rentech will provide additional opportunities for the application of Hydrogen Burner Technology's on-board reformers to provide clean burning fuels for the use in fuel cells. The naphtha and diesel fuel produced in Rentech's iron based Fischer-Tropsch technology, being free of sulfur, aromatics and metals, are ideal fuels for the "advanced fuel cell" concept currently being developed for use in transportation and utility vehicles.
(Rentech is also involved in a joint demonstration program with Thermal Conversion Corp. (TCC) of Kent, Washington. This venture involves a different type of modular front end system known as the TCC plasma technology.)
"Rentech looks forward to its relationship with PGS and working with a firm that has accomplished so much in cost-effective syngas development. Just as location and application dictate what type of FT system is used, location and application will also dictate what type of front end system is most appropriate. Rentech's iron-based FT process technology converts the broadest range of synthesis gas feedstock into FT products. Likewise, Rentech also wants to provide the broadest menu of competitively priced FT systems to meet the growing needs of the large, diverse and developing FT/GTL market," stated Dennis L. Yakobson, president and CEO of Rentech, Inc.
"PGS is excited about the potential opportunities of combining our UOB(TM) technology with Rentech's proven FT technology. The flexibility of Rentech's process, their having proved their FT technology at commercial scale and their extensive experience in Fischer-Tropsch makes them an ideal partner in the development of a small scale modular FT system. PGS has chosen to work with Rentech over other FT technology firms for these reasons and we look forward to a successful relationship with them," stated David Moard, president and CEO of Phoenix Gas Systems, LLC.
Certain portions of this release may contain forward looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Rentech and PGS believe their statements to be reasonable, investors are cautioned that such forward looking statements involve risk and uncertainties. There can be no assurance that actual results such as the acceptance of Rentech's and PGS technologies, successful completion of a commercial scale facility, future licensees or its ability to compete with larger FT companies will be accomplished as well as other risk factors outlined in the Company's periodic filings with the Securities and Exchange Commission which could cause actual results to differ.
For more information please contact:
Mark Koenig, Director of Investor Relations, Rentech, Inc., at 303-298-8008 or E-mail at RNTK1331@aol.com or visit the Company's web site at www.gastoliquids.com
Steve Lelewer, Market Development Manager, Phoenix Gas Systems, LLC at 562-597-2442, or E-mail at SLELEWER@hydrogenburner.com or visit the Company's web site at www.hydrogenburner.com
SOURCE Rentech, Inc.
/CONTACT: Mark Koenig, Director of Investor Relations of Rentech, Inc.,
303-298-8008, RNTK1331@aol.com; or Steve Lelewer, Market Development Manager
of Phoenix Gas Systems, LLC, 562-597-2442, SLELEWER@hydrogenburner.com/
/Web site: hydrogenburner.com
/Web site: gastoliquids.com |
