Ontario Government Selects Rentech's New Renewable Jet Fuel Project for Long-Term Supply of Biomass from Crown Forests
07 May 2011 - 12:00AM
PR Newswire (Canada)
LOS ANGELES, CA and SAULT STE. MARIE, ON, May 6 /CNW/ -- --
Province of Ontario selects Rentech's newly-announced Olympiad
Project in the Township of White River for proposed supply of up to
1.1 million cubic metres/year of wood fibre to produce renewable
RenJet®, a certified low-carbon jet fuel -- Up to C$200 million
funding opportunity from the Government of Canada's Sustainable
Development Technology Canada (SDTC) NextGen Biofuels Fund --
Project expected to create approximately 400 total jobs, revitalize
forestry sector and build Ontario's emerging bio-economy --
Renewable RenJet® will significantly lower carbon footprint and
particulate emissions compared to conventional jet fuel LOS
ANGELES, CA and SAULT STE. MARIE, ON, May 6 /CNW/ - Rentech, Inc.
(NYSE AMEX: RTK) today announced that its proposed Olympiad
Renewable Energy Centre (Olympiad Project) in The Township of White
River (White River), Ontario, has been selected by the Province of
Ontario for a proposed supply of up to 1.1 million cubic metres
(1.3 million U.S. tons) per year of Crown timber. The wood supply,
composed primarily of forest waste and unmerchantable species,
would be used for the sustainable production of renewable
RenJet(®), Rentech's clean certified low-carbon jet fuel. The
announcement was made at a joint press conference in Sault Ste.
Marie, Ontario attended by Michael Gravelle, Ontario Minister of
Northern Development, Mines and Forestry; MPP Mike Brown; MPP David
Orazietti; D. Hunt Ramsbottom, President and CEO of Rentech; Chief
Roy Michano of Pic River First Nation; Chief Johanna Desmoulin of
Pic Mobert First Nation; and White River Mayor Angelo Bazzoni. The
proposed wood allocation to Rentech's project is the largest ever
awarded in the Provincial Wood Supply Competitive Process
administered by the Ontario Ministry of Northern Development, Mines
and Forestry. The award would provide Rentech with a reliable
long-term supply of biomass for its proposed Olympiad Project. The
Ministry selected Rentech's proposal as the best proposed use of
the available timber. The selection is the first step in the
process of making the wood supply available to the project.
Rentech's Olympiad Project is being designed to produce
approximately 85 million litres (23 million gallons) annually of
renewable and certified low-carbon RenJet fuel. The project will
also produce 43 million litres (13 million gallons) annually of
renewable naphtha, a chemical feedstock. The Olympiad Project,
scheduled to be in service in 2015, will be designed as a
state-of-the-art renewable energy facility that will employ the
Company's Rentech-ClearFuels biomass gasification system and the
Rentech Process to produce the only type of alternative jet fuel
certified for use in commercial aviation today. These leading-edge
technologies will enable Rentech to turn primarily unmerchantable
and underutilized timber into clean, renewable jet fuel. Rentech is
working closely with Sustainable Development Technology Canada
(SDTC), whose C$500 million NextGen Biofuels Fund (NGBF) offers a
significant potential funding source for the Olympiad Project.
After a year of discussions with SDTC, Rentech has recently
submitted an application for funding to the NGBF, which funds up to
40 per cent to a maximum of C$200 million of eligible project
development and construction costs, which would be repaid from a
percentage of the project's cash flows. "We are eager to deploy
Rentech's proven proprietary technologies to create certified,
renewable, low-carbon jet fuel, while helping transform the
forestry sector and creating new jobs," said D. Hunt Ramsbottom,
President and CEO, of Rentech. "Ontario is a leader in
environmental sustainability and we are pleased to be working
closely with the Governments of Ontario and Canada, First Nations
and The Township of White River on this important initiative. This
selection in the Province of Ontario's competitive process
underscores Rentech's leadership role in a low carbon future and
builds on the company's success in developing clean fuel
technologies that are ready for commercial-scale production today."
Michael Gravelle, Ontario Minister of Northern Development, Mines
and Forestry, said, "Today's global business model drives companies
to locate their businesses where they find the best combination of
talent, cost efficiencies and capacity for efficient manufacturing
infrastructure. That's why Ontario has become the location of
choice for many companies that are expanding globally. The Ontario
government works continually to increase the province's competitive
advantages in attracting investment. We are delighted to welcome
Rentech's expansion to Northern Ontario and commend the spirit of
partnership and inclusiveness through which they have already built
foundations for strong relationships with northerners and First
Nations peoples." Mr. Ramsbottom added, "Having our project
selected in the Provincial Wood Supply Competitive Process for a
proposed large, sustainable feedstock supply from the Ontario
government is a significant achievement and step forward for our
renewable energy project. We will be working closely with SDTC,
First Nations, and other partners to secure project financing.
SDTC's funding opportunity played a key role in Rentech's decision
to pursue a large-scale renewable energy facility in Northern
Ontario. We're encouraged by the Government of Canada's commitment
to commercializing renewable energy projects." "Rentech's renewable
fuels project proposal is an example of how the SDTC NextGen
Biofuels Fund can provide real support to the commercialization of
new and advanced biofuel technologies," said Vicky Sharpe,
President and CEO of Sustainable Development Technology Canada. "We
look forward to working closely with Rentech as its application
advances to the next stage of consideration." Working with the
Province of Ontario and White River, Rentech has forged a
significant partnership with the Pic River First Nation for up to
an 18 per cent equity interest in the project. The Pic River
partnership is expected to create significant opportunities for the
Aboriginal community through job creation and advanced skills
training. Other Aboriginal communities, such as the Pic Mobert
First Nation, will benefit from regional opportunities as well.
Mike Brown, MPP for Algoma-Manitoulin, said, "I'm delighted that
Rentech has chosen this hard-working and progressive community as
the location for the first project of this kind anywhere in the
world. I look forward to further opportunities for the forest
sector that may arise from having such a leading-edge facility in
our region." Chief Roy Michano of Pic River First Nation commented,
"Communities such as Pic River and White River that have withstood
the industry shift from traditional pulp, paper and sawmills to new
uses for Ontario's forests now have a renewed sense of hope. We are
pleased with our partnership with Rentech, a very forward thinking
company that has embraced First Nations as an integral part of such
an ambitious project. Finally, to the Minister of Northern
Development, Mines and Forestry, we are truly thankful for
Ontario's continued support of our energy and forestry programs in
Pic River. Much of our success has been built on this continued
support." The project would bring much needed employment to a
region that has suffered significant job losses in recent years and
revitalize a struggling forestry sector, while contributing to
Ontario's growing high-tech bio-energy economy. The project would
leverage local sustainable forestry expertise, employ an estimated
83 full-time employees and create over 300 indirect and induced
positions. During peak construction, Rentech expects the project to
employ up to 1,000 workers. Mayor Angelo Bazzoni of White River
commented, "I am very pleased to bring Rentech's new technology to
the Superior East Region of Northern Ontario. More specifically, I
am excited to welcome Rentech to White River, Ontario,
and Canada. This project will put the region's wood
fibre to work. This will create much
needed employment and be an excellent opportunity for our
Community and First Nation neighbours and Rentech. Our
commitment is to continue to work with our provincial and federal
governments and Rentech to introduce this technology to
White River and the province to produce renewable jet
fuel." Renewable RenJet and naphtha to be produced at the Olympiad
Project are estimated to reduce approximately 600,000 metric tonnes
per year of CO(2)-equivalent from the atmosphere compared to the
same products produced from petroleum. This equates to removing
more than 100,000 passenger cars from the road. Production of
RenJet from forest waste and unmerchantable species at the Olympiad
Project has the dual benefit of reducing greenhouse gas emissions
and providing Canada with a domestic supply of certified low-carbon
jet fuel. RenJet is virtually free of sulfur and aromatics. When
compared to traditional jet fuel, tailpipe emissions from RenJet
generate lower amounts of particulate matter, nitrogen oxides
(NO(X)), and sulfur oxides (SO(X)). Life-cycle emissions of carbon
dioxide are significantly below those of petroleum-based jet fuel.
The lower density of RenJet fuel could enable aircraft to have a
lower take-off weight, which conserves fuel and lowers operating
costs. Rentech operates a demonstration facility in Commerce City,
Colorado, deploying its synthetic fuels technology that has
produced over 150,000 litres (40,000 gallons) of certified
synthetic fuels. In 2010, a commercial flight flew on a blend of
Rentech\'s synthetic jet fuel and conventional Jet-A with no
difference in performance when compared to conventional jet fuel.
The Ministry of Northern Development, Mines and Forestry's press
release regarding this announcement is available at
http://www.news.ontario.ca/mndmf/en/. About Rentech, Inc. Rentech,
Inc. (www.rentechinc.com), incorporated in 1981, provides clean
energy solutions. The Company's Rentech-SilvaGas biomass
gasification process can convert multiple biomass feedstocks into
synthesis gas (syngas) for production of renewable fuels and power.
Combining the gasification process with Rentech's unique
application of syngas conditioning and clean-up technology and the
patented Rentech Process based on Fischer-Tropsch chemistry,
Rentech offers an integrated solution for production of synthetic
fuels from biomass. The Rentech Process can also convert syngas
from fossil resources into ultra-clean synthetic jet and diesel
fuels, specialty waxes, and chemicals. Final product upgrading and
acid gas removal technologies are provided under an alliance with
UOP, a Honeywell company. Rentech develops projects and offers
licenses for these technologies for application in synthetic fuels
and power facilities worldwide. Rentech Energy Midwest Corporation,
the Company's wholly-owned subsidiary, manufactures and sells
nitrogen fertilizer products including ammonia, urea ammonia
nitrate, urea granule, and urea solution in the corn-belt region of
the central United States. Safe Harbor Statement This press release
contains forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995 about matters such as the
characteristics of the renewable fuel to be produced from Rentech's
technologies, the Company's development of its proposed renewable
energy facility in Ontario and the timing and finalizing of
satisfactory commercial agreements related to the project,
including the proposed wood supply from the Government of Ontario,
and the prospects and implications of funding from governmental
programs. These statements are based on management's current
expectations and actual results may differ materially as a result
of various risks and uncertainties. Other factors that could cause
actual results to differ from those reflected in the
forward-looking statements include the financial means of Rentech
to build proposed projects, fluctuations in commodities prices
including the price of oil and the materials necessary to construct
projects, the impact of changing government regulations on the
project permitting process and the qualification of renewable power
and fuels, the DOE's rejection of the Company's loan guarantee
application and 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 the date of this release, 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. To view this news release in HTML formatting, please use the
following URL:
http://www.newswire.ca/en/releases/archive/May2011/06/c2104.html p
Please contact: Julie Dawoodjee, Vice President of Investor
Relations and Communications, Rentech, Inc. at 310-946-9842 or by
email at a href="mailto:ir@rentk.com"ir@rentk.com/a. /p p
align="left" Jeff Roman, NATIONAL Public Relations,
416-346-5157, a
href="mailto:jroman@national.ca"jroman@national.ca/a /p
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