Rentech Provides Update on Port St. Joe Project
May 11 2011 - 9:00AM
Business Wire
Rentech, Inc. (NYSE AMEX: RTK) announced that it received late
yesterday a letter from the U.S. Department of Energy (DOE)
containing notice that the Company’s loan guarantee application for
its proposed Port St. Joe Renewable Energy Center (Port St. Joe
Project) under the Section 1705 Title XVII Loan Guarantee Program
has been placed on hold.
The DOE indicated in the letter that the Port St. Joe Project
may be eligible for a loan guarantee under the Section 1703
program, and that the project’s loan guarantee application would
continue to be evaluated should the DOE Loan Programs Office have
sufficient budget resources. The letter also stated that the DOE is
developing a process to allocate existing appropriations under the
Section 1703 program for eligible projects that have already
applied to the Section 1703 or 1705 programs. The DOE specified
that its decision to place the project’s application on hold under
the Section 1705 program was not a result of the quality of the
project, but was due to a lack of sufficient appropriations to fund
loan guarantees for all of the applications that have been accepted
into due diligence.
In light of the DOE’s notification, Rentech will assess next
steps for development and financing for the project, including
further discussions with the U.S. government. The Company expects
to present a path forward for the Port St. Joe Project in the
coming weeks.
D. Hunt Ramsbottom, President and CEO of Rentech, commented,
“With this unexpected news from the DOE, we will evaluate our best
course of action for this project. We have a 20-year Power Purchase
Agreement, an ideally situated site with numerous feedstock
options, advanced permitting activities, and advanced negotiations
for an EPC contract. We will also continue to pursue our other
projects, including our recently announced Olympiad Project in the
province of Ontario, and our reconfigured Rialto Project.”
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 Company's development of its proposed
renewable energy facilities 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.
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