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
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
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 CO2-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 (NOX), and sulfur oxides (SOX). 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.
SOURCE Rentech, Inc.
For further information:
Please contact: Julie Dawoodjee, Vice President of Investor Relations and Communications, Rentech, Inc. at 310-946-9842 or by email at firstname.lastname@example.org.
Jeff Roman, NATIONAL Public Relations, 416-346-5157, email@example.com