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|Rentech Completes Purchase of Site for Commercial Scale Synthetic Fuels and Chemicals Facility|
LOS ANGELES, Jun 04, 2008 (BUSINESS WIRE) -- Rentech, Inc. (AMEX:RTK) today announced that it has completed the purchase of approximately 450 acres in Adams County, Mississippi near the city of Natchez. Rentech intends to build its Rentech Strategic Fuels and Chemicals Center at the site. The facility will produce Rentech's ultra-clean synthetic transportation fuels and specialty waxes and chemicals.
D. Hunt Ramsbottom, Rentech's President and Chief Executive Officer stated, "We are pleased to have completed the acquisition of this site for our commercial scale synthetic fuels and chemicals facility. The purchase of the site is another critical step in moving the project forward." Mr. Ramsbottom continued, "The site provides us with a competitive advantage because of its access to multiple feedstocks and several product distribution channels, including a CO(2) pipeline that services enhanced oil recovery in the region."
Woody Allen, Chairman of Natchez-Adams County Development Authority, said, "The Natchez-Adams County Development Authority is excited about Rentech's purchase of the International Paper property and looks forward to continued positive working relations to develop a strategic fuels and chemicals center in Adams County."
Using the patented Rentech Process, the Rentech Strategic Fuels and Chemicals Center is expected to use primarily petroleum coke as gasification feedstock to produce ultra-clean synthetic fuels and specialty waxes and chemicals. The captured carbon dioxide produced at this facility is designated to be sold under an existing long-term agreement with Denbury Resources for enhanced oil recovery in the region. With the carbon capture and sequestration design, the carbon dioxide emissions from the production of fuels at the Natchez facility are expected to be lower than those generated in the production of traditional petroleum-derived fuels. The Company believes the fuels produced at this facility will be among the most greenhouse gas friendly fuels available in the country.
"Rentech is grateful for the local and state support received for this project, including the land purchase and the recent allocation approval of $175 million in tax-exempt GO ZONE bonds. These events are instrumental in the development of our commercial scale synthetic fuels and chemicals facility in Mississippi to help our nation's energy security needs in an environmentally sound manner," said Mr. Ramsbottom.
About Rentech, Inc.
Rentech, Inc. (www.rentechinc.com), incorporated in 1981, provides clean energy solutions. The Company has developed and patented the Rentech Process which transforms under-utilized domestic energy resources into valuable and clean alternative fuels, waxes and chemicals. These energy resources include natural gas, biomass, municipal solid waste, petroleum coke and coal. Rentech Energy Midwest Corporation manufactures and sells fertilizer products including ammonia, urea ammonia nitrate, urea granule and urea solution to the corn-belt region.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 about matters such as the Company's proposed clean synthetic fuels and chemicals complex in Adams County, Mississippi, including the funding for the project, the project design, and use of carbon dioxide generated from the project. 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 ability of Rentech to have the financial means to build the proposed project; the suitability of the proposed site for the project; and other 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 June 4, 2008, 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.