Press Release Source: Rentech, Inc.
Rentech, Inc. and Royster-Clark Nitrogen Receive Notification From the Illinois Clean Coal Board for up to $5 Million in Grants for East Dubuque 'Coal to Corn' Project
Monday October 11, 10:30 am ET
DENVER, Oct. 11 /PRNewswire-FirstCall/ -- Rentech, Inc.(Amex: RTK - News) announced today that Rentech Development Corporation, its wholly-owned subsidiary, and Royster-Clark Nitrogen, Inc. (RCN) have been notified that they will be receiving up to $5 million in grants for work related to the conversion of the East Dubuque, Illinois nitrogen fertilizer plant from natural gas feedstock to Illinois No. 6 coal. $2.5 million has been unanimously approved by Illinois Clean Coal Review Board (CCRB) for Royster-Clark Nitrogen, Inc. (RCN). The grant is to be used by Rentech Development Corporation for a detailed front-end engineering design (FEED) and the permitting phases for the conversion of the East Dubuque, Illinois nitrogen fertilizer plant. The conversion has been nicknamed the "Coal to Corn" project.
The CCRB stated that the grant was conditioned upon a matching grant of another $2.5 million by the Illinois Department of Commerce and Economic Opportunity (DCEO). Application documents for the matching grant were requested by the DCEO from RCN and Rentech and have been submitted by the two companies. The second grant calls for finalization of an award contract which contains the applicants' agreement to repay the grant at the close of construction financing for the plant's conversion.
In August of 2004 Rentech signed a Letter of Intent with Royster-Clark, Inc. for Rentech Development Corporation, to purchase the stock of RCN, and thereby acquire a 100% ownership of its 830 ton per day natural gas-fed nitrogen fertilizer production plant in East Dubuque, Illinois. Upon completion of the acquisition, which is pending as previously announced, Rentech intends to convert the natural gas-fed fertilizer production facility into a coal-fed facility. The converted plant will use the latest in clean coal-gasification technology as well as Rentech's Fischer-Tropsch process. The plant's conversion to coal is scheduled for completion in early 2008 at which time the plant will produce ammonia fertilizer at approximately 1000 tons per day, ultra-clean Fischer-Tropsch fuels at approximately 1800-2200 barrels per day, and electricity of approximately 20-25 megawatts of excess power for the local power grid.
Rentech, Inc., a Denver, Colorado corporation, incorporated in 1981, is the developer and licensor of a patented and proprietary Fischer-Tropsch gas-to-liquids process for conversion of synthesis gas made from natural gas, industrial off-gas, or solid or liquid carbon-bearing materials into high-value fuels and chemicals. These include clean burning, ultra-low-sulfur and ultra-low-aromatic fuels (beyond detectable limits), naphtha, waxes and fuel for fuel cells. Through its subsidiary Rentech Development Corporation, the Company plans to acquire and develop projects that include the Rentech process.
Safe Harbor Statement
Certain information included in this report contains, and other reports or materials filed or be filed by the Company with the Securities and Exchange Commission (as well as information included in oral statements or other written statements made or to be made by the Company or its management) contain or will contain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended, and pursuant to the Private Securities Litigation Reform Act of 1995. The forward-looking statements may relate to financial results and plans for future business activities and are thus prospective. The forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. They can be identified by the use of terminology such as "may," "will," "expect," "believe," "intend," "plan," "estimate," "anticipate," "should" and other comparable terms or the negative of them. You are cautioned that, while forward-looking statements reflect our good faith belief and best judgment based upon current information, they are not guarantees of future performance and are subject to known and unknown risks and uncertainties. Factors that could affect Rentech's results include our ability to obtain financing for the purchase and conversion of the plant and for working capital; acquisition of an inexpensive long-term coal supply contract; natural gas prices during the construction phase; final project costs due to volatility of prices of equipment; obtaining customers for the products; the timing of various phases of the project; the entry into definitive agreements with others related to the project, and the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995, and thus are currently only as of the date made.
For more information please contact: Mark Koenig, Director of Investor Relations, Rentech, Inc. at 303-298-8008 or E-mail at mkir@rentk.com, or see the Company's web site at: www.rentechinc.com
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