Rentech Comments on Recent Agreement Between DKRW and Arch Coal
Monday August 28, 9:15 am ET
Agreement Provides Platform to Expedite the Use of the Rentech Process for DKRW's Wyoming Project and Expand its Use to Other Projects
LOS ANGELES, Aug. 28 /PRNewswire-FirstCall/ -- Rentech, Inc. (Amex: RTK - News) today commented on the recently announced agreement between its technology licensee DKRW Advanced Fuels LLC, Inc. ("DRKW-AF"), a subsidiary of DKRW Energy LLC., Houston, Texas and St. Louis-based Arch Coal (NYSE: ACI - News), one of the largest coal producers in the United States, under which Arch acquired a 25 percent stake in DKRW-AF. Arch announced that it has agreed to invest $25 million in DRKW-AF, and it has entered into a new agreement whereby Arch and DKRW-AF will explore potential reserves and project opportunities in two other coal basins. DRKW-AF is developing an initial 10,000 barrel per day Wyoming coal-to-liquids (CTL) project that will utilize Rentech's patented and proprietary synthetic fuels process.
"We believe that this agreement reflects the growing recognition by leading coal companies such as Peabody Energy Corp. and Arch Coal of the unique role that our technology can play in developing a cost-effective alternative source of energy," said D. Hunt Ramsbottom, president and CEO of Rentech. "It creates the potential for the expansion of DKRW's coal-to-liquids development with a significant partner who owns large coal reserves. These projects, combined with Rentech's ongoing commercialization efforts continue to demonstrate that CTL technology and ultra clean synthetic fuels will be significant contributors to the United States' efforts regarding energy security and independence."
About Rentech, Inc.
Rentech, Inc., a Colorado corporation formed in 1981, offers energy independence solutions by utilizing American resources to economically produce ultra clean fuels. To execute this strategy it utilizes its patented and proprietary Fischer-Tropsch gas-to-liquids/coal-to-liquids process for conversion of synthesis gas made from natural gas, coal and other solid or liquid carbon-bearing materials into clean burning, ultra-low-sulfur and ultra-low-aromatic synthetic fuels.
Safe Harbor
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 such as the potential for expedited and expanded use of the Rentech's technology. These statements are based on management's current expectations and actual results may differ materially as a result of various risks and uncertainties, including those set forth in the Company's prior press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech's web site at www.rentechinc.com. Factors that could affect Rentech include, but are not limited to, market conditions demand for Rentech's technologies and fuels; the commercial success of Rentech's and its licensees' projects, none of which are currently operating; the impact of competitors and their licensees, many of whom have significantly more resources than Rentech or its licensees; Rentech's and its licensees' (including DKRW Alternative Fuels LLC) ability to secure agreements with potential developers or investors and our and their ability to obtain financing necessary to execute the planned projects (including Medicine Bow, Wyoming); a decision by development parties to move forward with a specific commercial project that would license and utilize the Rentech Process technology; the timing for completion and operation of Rentech's and its licensees' projects; the performance of Rentech's and its licensees' technologies and products; and the risk factors detailed from time to time in the company's periodic reports and registration statements filed with the Securities and Exchange Commission. Any forward-looking statements are current only as of the date made, 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.
For more information please contact: Mark Koenig, Director of Investor Relations, Rentech, Inc. at 303-298-8008, extension 116, or by email at mkir@rentk.com, or see the company's website at: www.rentechinc.com; or Kevin Theiss, CEOcast, Inc. at 212-732-4300 or by email at ktheiss@ceocast.com.
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Source: Rentech, Inc.
