State of Mississippi Approves $15 Million Funding for Rentech's Proposed Adams-Natchez Clean Fuel Manufacturing Facility
Monday April 17, 9:00 am ET
Funding to Support the Development of Rentech's Proposed Clean Fuel Manufacturing Plant
DENVER, April 17 /PRNewswire-FirstCall/ -- Rentech, Inc. (Amex: RTK - News) today announced that the State of Mississippi has enacted a $15 million state funding initiative, included in House Bill 1634, providing for site improvements at the location of Rentech's proposed 10,000 barrel per day clean fuel manufacturing plant in Natchez, Mississippi. The funding is subject to Rentech meeting certain financial, employment and other criteria. Rentech has proposed building a 10,000 barrel per day clean fuel manufacturing plant in Adams County, Mississippi near Natchez.
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"We are very grateful to Governor Haley Barbour, Lt. Governor Amy Tuck, Speaker of the House Billy McCoy, the State of Mississippi, members of the Mississippi legislature, the President and Board of Supervisors of Adams County, the Mayor and City of Natchez as well as the ten county coalition for their support in the passage of a $15 million state funding initiative," said Hunt Ramsbottom, President and CEO of Rentech. "Since proposing the clean fuel manufacturing plant six months ago, the public officials of Natchez-Adams County Economic Development Authority, the Mississippi legislators, Governor Barbour, and the citizens of Mississippi have recognized the important role that our proposed plant could play in providing a clean, cost-effective alternative to the high energy costs they are currently facing. This funding will be instrumental in moving the project to commercialization. It will provide funding to Adams County to complete necessary civil improvement work at the Belwood site and an expansion of the Adams County Port facility to support the project. By passing this funding initiative, Mississippi has shown it recognizes the importance of national energy security and the need to utilize local resources in a clean and responsible manner to reach our national goals of cutting energy dependence on foreign oil."
Rentech is currently in negotiations with the Adams County Board of Supervisors to purchase or lease the Belwood site on a long-term basis for its proposed 10,000 barrel per day clean fuel manufacturing plant. If Rentech is successful in structuring an agreement for the land and satisfies the state funding criteria, Adams County will provide Rentech with an improved site and port facilities necessary to meet its plant's needs.
"We look forward to working with Rentech to move this project to commercialization," said Darryl Grennell, President of the Adams County Board of Supervisors. "By having a clean fuel manufacturing plant in Adams County producing reliable fuel with a long shelf life, local and regional emergency agencies will have access to fuel supplies to support emergency needs during critical situations like those presented during Hurricanes Katrina and Rita, which was not the case during these two tragic events."
"Rentech will be a tremendous asset to our city for many, many years to come," said Mayor Phillip West, City of Natchez. "It will enhance our overall growth and economic development by supplying much needed quality jobs for the people in our area. We want to thank Rentech for choosing Natchez-Adams County, and we look forward to working with them to bring this much needed alternate fuel source to our area and nation. We are extremely proud to be a part of this environmental-friendly initiative."
The proposed Rentech facility would utilize coal and petroleum coke for its feedstock. The fuels from the plant would be used within the region and produced from a more secure facility than the refineries of the US Gulf Coast that are very susceptible to interruption during the hurricane season. This would provide a production source for fuels during crisis situations that emergency facilities and first responders could rely on for their backup power and fuel needs, which was not the case during Hurricanes Katrina and Rita.
It is estimated that the company will employ approximately 1,500 jobs over the three-year construction. Additionally, it is expected that the facility will provide approximately 200 permanent positions, at an average annual salary of $45,000, plus benefits. No definitive agreements with respect to the plant have been reached yet, and the project will be subject to obtaining necessary financing, permits and other approvals.
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