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December
11, 2006
NEWS FLASH
Another coal-to-liquids project is announced by Rentech, Inc., a
sponsor of the American Energy
Security Initiative.
East Coast's only coal-to-liquid
plant to locate in Mingo
BY
LEIGH ANN WELLS
STAFF WRITER
Appalachian News-Express
Saturday December 9, 2006
Rentech Richard O. Sheppard (left) and MCRA Mike Whitt
(right)
WILLIAMSON,
W.Va. - A project that has taken more than two years to
develop came to fruition yesterday, when an announcement
was made that Mingo County will be the site of a new
coal-to-liquid plant that will process coal into diesel
fuel.
The announcement was made by Mingo County Redevelopment
Authority (MCRA) Executive Director Mike Whitt and
Richard O. Sheppard, senior vice president for project
development of Rentech Energy Solutions Inc., a
California-based company with offices in Colorado.
“We're so excited here,” Whitt told Sheppard, members of
the MCRA board and state regulators who attended the
meeting. “It will be the only project on the East
Coast.”
Sheppard said
that representatives of the MCRA came to Colorado about
eight months ago to discuss the possibility of locating
the plant in Mingo County. Sheppard said once the
delegation made their presentation, he and
representatives of Rentech were very impressed.
“We said, ‘There is a real opportunity in West
Virginia,” Sheppard said. “These guys are real. They
know what they are talking about.”
Sheppard explained that Rentech concentrates on
transforming coal into usable, ultra-high purity diesel
fuel that has a shelf life of up to eight years. The
coal is transformed using the Fischer-Tropsch (FT)
technology which consists of three steps - gasification,
FT conversion and upgrade. Sheppard said the FT process
can work with any coal that can be gasified.
Sheppard said the global diesel demand is growing
dramatically and that CTL plants can play a role in
national security by cutting the United States'
dependency on foreign oil. He said the U.S. has huge
coal resources and a huge energy problem.
Sheppard explained that Rentech is developing five
projects, with Mingo County being the fifth. Other
project locations are on the Illinois/Iowa border; in
Natchez, Miss.; on the Kentucky, Indiana and Illinois
border and in Montana.
The joint
development agreement signed by Sheppard and Whitt
yesterday will be followed by the initial phase of the
project - a 60-day due diligence period - that will
begin the first week of January 2007. If the project is
viable, Rentech and the MCRA will continue to evaluate
the project in stages by determining the scope and
feasibility. After successful completion of these
initial stages, Rentech and the MCRA expect to establish
a project entity and then move forward with engineering,
financing and construction. Initially, the parties will
share the costs of any third-party development expenses
and have equal interests in the project.
Sheppard said the Mingo County plant will be designed to
produce 20,000 barrels per day. The project will cost an
estimated $2 billion with construction tentatively set
to begin within two years.
The construction phase could produce as many as 1,500
construction jobs. An estimated 400 fully-employed
“good” jobs will be available once the plant opens about
four years from now, Sheppard added, calling the project
an “exciting opportunity for devastated coal
communities.”
“We're looking forward to doing something here,”
Sheppard said.
MCRA Chairman Terry Sammons thanked Sheppard for
choosing Mingo County.
“The formation of the joint development agreement
between the Mingo County Redevelopment Authority and
Rentech represents a vital step that West Virginia is
taking in its efforts to further national energy
independence and security while utilizing our resources
in an environmentally responsible manner,” Whitt said.
“Mingo County is also about creating jobs and
development for our state while producing products that
keep America clean and safe.”
D.Hunt Ramsbottom, president and CEO of Rentech,
released a statement in which he thanked the MCRA and
the state of West Virginia for giving Rentech the
opportunity to jointly develop the clean fuels plant.
“West Virginia's vast supply of high-energy content coal
and readily available mining infrastructure provide the
necessary support that can make this opportunity a
reality,” Ramsbottom said.
Story created
Dec 07, 2006 - 17:50:07 CST.
Source:
http://www.news-expressky.com/articles/2006/12/08/news/01plant.txt |
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RENTECH,
INC.
For Immediate
Release
December 7, 2006
_____________________________________________________
Rentech Enters a
Joint
Development
Agreement
with
Mingo County
West Virginia
Redevelopment
Authority
for Clean Fuels
Project
_____________________________________________________
Parties Initiate
Due Diligence
Phase on a
10,000 to 30,000
Barrel Per Day
Facility
Los Angeles,
California;
Williamson, West
Virginia - The
Mingo County
Redevelopment
Authority (MCRA)
Williamson, West
Virginia and
Rentech, Inc. (AMEX:RTK)
announced today
that they have
entered into a
Joint
Development
Agreement (JDA)
for the
development of a
Fischer-Tropsch
(FT) clean fuels
plant to be
located in Mingo
County (the
Mingo Project).
Located in the
lower portion of
southwestern
West Virginia,
the Mingo
Project would
utilize
Rentech's
Fischer-Tropsch
technology to
convert
synthesis gas, a
combination of
hydrogen and
carbon monoxide
produced from
the West
Virginia coal,
into ultra-clean
transportation
fuels to be used
in the Mingo
County region.
The parties
intend to
cooperate to
develop,
finance, own and
operate the
project which
could produce
approximately
three to nine
million barrels
a year of the
ultra-clean
fuels.
The initial
phase of the
project will
entail a 60-day
due diligence
period to be
initiated within
the first week
of January 2007.
Providing the
due diligence
phase indicates
that the project
is viable,
Rentech and the
MRCA will
continue to
evaluate the
project in
stages by
determining the
scope and
feasibility of
the project.
After successful
completion of
these initial
stages, Rentech
and MCRA expect
to establish a
project entity
and then move
forward with
engineering,
financing, and
the construction
of the facility.
Initially, the
parties will
share the costs
of any third
party
development
expenses and
have equal
interests in the
project.
"The formation
of the Joint
Development
Agreement
between the
Mingo County
Redevelopment
Authority and
Rentech
represents a
vital step that
West Virginia is
taking in its
efforts to
further national
energy
independence and
security while
utilizing our
resources in an
environmentally
responsible
manner," stated
Mike Whitt,
executive
director of the
MRCA. "Mingo
County is also
about creating
jobs and
development for
our state while
producing
products that
keep America
clean and safe,"
continued Mr.
Whitt.
"We would like
to thank the
MRCA and the
state of West
Virginia for
giving Rentech
the opportunity
to jointly
develop this
clean fuels
plant. West
Virginia's vast
supply of high
energy content
coal and readily
available mining
infrastructure
provide the
necessary
support that can
make this
opportunity a
reality," stated
D. Hunt
Ramsbottom,
president and
CEO of Rentech.
About Mingo
County and the
MRCA
Located in
southwestern
West Virginia in
the "Heart of
the Billion
Dollar Coal
Industry," Mingo
County is third
in the state in
overall coal
production. The
Mingo County
Redevelopment
Authority is a
public
organization,
"established to
promote and
encourage the
economic and
civic welfare of
Mingo County,
and for the
development,
attraction and
retention of
business,
industries, and
commerce within
the county, thus
creating
employment
opportunities
and increasing
the area's tax
base."
About Rentech, Inc.
Rentech, Inc., a
Colorado corporation
formed in 1981,
offers energy
independence
solutions utilizing
American resources
to economically
produce ultra clean
synthetic fuels. To
execute this
strategy, it
utilizes its
patented and
proprietary
Fischer-Tropsch
gas-to-liquids/coal-to-liquids
process for
conversion of
synthesis gas made
from natural gas,
coal and other solid
or liquid
carbon-bearing
materials into clean
burning, ultra-low
sulfur and ultra-low
aromatic fuels.
Safe Harbor
This press release
contains
forward-looking
statements as
defined in the
Private Securities
Litigation Reform
Act of 1995 such as
the potential for
expedited and
expanded use of the
Rentech's
technology. These
statements are based
on management's
current expectations
and actual results
may differ
materially as a
result of various
risks and
uncertainties,
including those set
forth in the
Company's prior
press releases and
periodic public
filings with the
Securities and
Exchange Commission,
which are available
via Rentech's web
site at
www.rentechinc.com
. Factors that
could affect Rentech
include, but are not
limited to, market
conditions demand
for Rentech's
technologies and
fuels; the outcome
of all phases of the
JDA between Rentech
and the MRCA; the
commercial success
of Rentech's and its
licensees' projects,
none of which are
currently operating;
the impact of
competitors and
their licensees,
many of whom have
significantly more
resources than
Rentech or its
licensees; Rentech's
and its licensees
ability to secure
agreements with
potential developers
or investors and our
and their ability to
obtain financing
necessary to execute
on planned projects;
a decision by
development parties
to move forward with
a specific
commercial project
that would license
and utilize the
Rentech Process
technology; the
timing for
completion and
operation of
Rentech's and its
licensees' projects;
the performance of
Rentech's and its
licensees'
technologies and
products; 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
current only as of
the date made, 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.
For more information
on the MRCA, please
contact: Mike Whitt,
Executive Director
at 304-235-0042 or
by email at
whitt_mrca@verizon.net.
For more information
about Rentech
contact: Mark
Koenig, Director of
Investor Relations,
Rentech, Inc. at
303-298-8008,
extension 116, or by
email at
mkir@rentk.com,
or see the company's
website at:
www.rentechinc.com
; or Kevin
Theiss, CEOcast,
Inc. at 212-732-4300
or by email at
ktheiss@ceocast.com. |
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