October 27, 2010

Rentech and ClearFuels Integrated Bio-Refinery Project to Receive DOE Funding

ClearFuels Technology, Inc. announced today that it has signed a Cooperative Agreement with the U.S. Department of Energy (DOE) to receive the remaining $19.7 million of a $23 million grant award to complete construction of a ClearFuels demonstration scale gasifier that will supply syngas from biomass and integrate it with Rentech's Product Demonstration Unit at the Rentech Energy Technology Center in Colorado.

The grant will facilitate the integration of ClearFuels' flexible and versatile biomass to synthesis gas technology with Rentech's Fisher-Tropsch Process, with the goal of demonstrating efficient, cost-effective production of certified, drop-in, renewable diesel and jet fuels from clean biomass at Rentech's Product Demonstration Unit in Commerce City, Colorado. This joint demonstration of an integrated bio-refinery is anticipated to be completed in late 2011.

RenDiesel(R) fuel produced using Rentech's technology is biodegradable, exceeds all global sulfur requirements and has virtually no aromatics. When compared to traditional petroleum-derived low sulfur diesel, tailpipe emissions from RenDiesel fuel generate lower amounts of hydrocarbons, carbon monoxide, particulate matter, nitrogen oxides (NOX), sulfur oxides (SOX) and carbon dioxide. Also, when compared to traditional diesel fuels, RenDiesel fuel has higher hydrogen content, heating value and cetane index, making it very energy-efficient. RenDiesel fuel contains approximately 60% more energy per gallon than ethanol and diesel engines typically achieve 20-40% more miles per gallon than gasoline engines. RenDiesel fuel also produces fewer volatile organic compound (VOC) emissions than ethanol or traditional diesel.

RenJet(R) fuel produced using Rentech's technology is the only alternative fuel type certified for commercial aviation. Rentech's certified jet fuel has all the positive attributes of its synthetic diesel fuel and also reduces aircraft particulate matter emissions by 96% in engine idle, a major source of ground level pollution. Also, the lower density of RenJet fuel could enable aircraft to have lower take-off weight, which conserves fuel and lowers operating costs. Alternatively, the lower density of RenJet fuel could allow aircraft to carry heavier payloads with the same volume of fuel when compared to traditional jet fuel.

Commercial scale ClearFuels-Rentech bio-refineries are anticipated to be designed with the flexibility to produce both renewable synthetic diesel and jet fuels from multiple clean biomass feedstocks including bark, sawdust, woodchips, sugarcane bagasse, cane trash, corn stover and mixtures of clean biomass.

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