RTK strikes CTL deal:
(from TDAmeritrade)
"""Peabody offers up to $10 mln for coal liquification plant
8:18a ET May 29, 2007 (MarketWatch)
NEW YORK (MarketWatch) -- Peabody Energy said Tuesday it'll pay up to $10 million to Rentech, Inc. for its planned coal-to-liquids project in Illinois and to supply the facility with nearly 1 million tons of coal annually. Peabody also has an option to acquire a 20% equity interest in the project through increased funding. Rentech is converting its existing fertilizer production facility into a coal gasification complex to "produce ultra-clean transportation fuels," Peabody said. The project would be the first commercial coal-to-liquids facility developed in the United States."""
"""Peabody Energy to invest in Rentech fuel plant
12:35p ET May 29, 2007 (MarketWatch)
NEW YORK (MarketWatch) -- Peabody Energy on Tuesday pledged $10 million in cash toward a future coal-to-liquid fuel operation run by Rentech Inc., in return for the right to buy a stake in the plant, which is being billed as the first commercial U.S. facility of its kind.
The coal company will fund up to $10 million of the engineering and development costs for Rentech's planned project at its Rentech Energy Midwest facility in Illinois.
Peabody Energy will also supply the facility with nearly 1 million tons of coal annually, or about $45 million worth a year, and obtain the right to purchase a 20% equity interest in the project.
Shares of Peabody Energy rose 91 cents to $54.87. Rentech added 18 cents to $2.67.
The move comes amid a lobbying push in Washington by Peabody Energy and others to attract federal subsidies to the coal industry as a way to reduce the U.S.'s dependency on imported oil.
While converting coal to liquid fuel produces about a ton of carbon dioxide for every barrel of fuel, proponents of the process say they can reduce emissions by pumping the greenhouse gas into the ground.
Carbon sequestration is often used to help extract oil from the ground and to prevent it from reaching the atmosphere.
Rentech said it plans to convert an existing natural gas fed ammonia fertilizer plant into a coal-to-liquids and ammonia facility to use gasification technology, "to produce ultra-clean transportation and aviation fuels and fertilizer."
Upon the expected completion of the plant conversion by 2010, Rentech predicts a production level of 1,250 barrels per day or 17.8 million gallons annually.
The facility's diesel fuel will have lower regulated emissions than conventional low-sulfur diesel fuel.
Coal-to-diesel technology has been around for decades, when it was used by the Germans in World War II to circumvent oil embargos."""
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