Aiea, HI (January 19, 2010) – ClearFuels Technology Inc. (“ClearFuels”) has executed a letter of engagement with BNP Paribas to act as financial advisor to assist and support ClearFuels in securing senior secured debt financing for its commercial biorefinery projects.
The agreement calls for BNP Paribas to assist and support ClearFuels with the analytical work and due diligence regarding ultimate debt financing for ClearFuels’ commercial projects. These services would be directed, in part, to create financing plans for the commercial projects. BNP Paribas would consider arranging and acting as lead lender for the senior debt financing at market terms for the first three commercial projects.
ClearFuels recently announced it was selected to receive up to $23 million as a grant from the U.S. Department of Energy (“DOE”) to construct a biomass gasifier at Rentech’s Energy Technology Center (“RETC”) in Colorado and integrate it with Rentech’s existing Product Demonstration Unit. The project team for the demonstration includes ClearFuels, Rentech, which has a 25% strategic ownership investment in ClearFuels, URS, Linde/Hydro-Chem, Hawaiian Electric Company, National Renewable Energy Lab (“NREL”), and Hawaii Natural Energy Institute (“HNEI”).
ClearFuels expects to complete the demonstration project in 2011 and move directly to construction of commercial projects in the second half of 2011. The ClearFuels gasification and Rentech Fischer-Tropsch conversion technologies have been developed, tested and improved independently over the past 15 years. The unique integration of these technologies represents a breakthrough in the design of versatile biofuels production plants, promising a definitive advance in thermochemical biofuels conversion efficiency and flexibility, making ClearFuels and its partners leaders in producing multiple liquid fuels from the same biorefinery.
Eric Darmstaedter, CEO of ClearFuels stated, “We are very pleased to have BNP Paribas on board now to advise us on debt financing for our commercial projects under development. We expect the demonstration project to validate our integrated technologies and provide the basis we need to develop EPC contracts that can support non-recourse debt finance for commercial projects.” He commented further, “Most of our executive management team has over 25 years of experience in the energy infrastructure development business. We understand how critical it is to get the right team together early for successful commercial development. BNP Paribas is a great addition to our team.”
Brian Goldstein, Managing Director and Head of Project Finance Americas for BNP PARIBAS commented, “We are excited about the opportunity to act as an Advisor to ClearFuels. We like their approach to the market with the integrated ClearFuels-Rentech technologies and strong project partners. Our extensive expertise in non-recourse renewable energy financings, unbiased structuring approach and strong execution capabilities in the bank and bond markets make BNP PARIBAS an ideal advisor.”
ClearFuels, has begun development of multiple commercial-scale biomass-to-energy projects in the southeastern United States, Hawaii and internationally. These projects are expected to use an integrated ClearFuels-Rentech design and be co-located at sugar mills, and at wood and other biomass processing facilities. It is expected that the life-cycle carbon footprint of renewable fuels produced by ClearFuels-Rentech technologies can be near zero, depending on the feedstock and the alternate use of such feedstock.
The renewable synthetic diesel and jet fuels will meet all applicable fuels standards, be compatible with existing engines and pipelines, and burn cleanly, with emissions of particulates and other regulated pollutants significantly lower than emissions of traditional fuels. Jet fuel produced from the Fischer-Tropsch process, on which Rentech’s technology is based, is the only alternative fuel type currently certified for use by the U.S. Air Force and for use in commercial aircraft.
About ClearFuels Technology Inc. ClearFuels (www.clearfuels.com) and its partners are developing advanced sustainable biorefineries that convert multiple mixed cellulosic biomass feedstocks into sustainable, high-value energy products including renewable Fischer-Tropsch (“FT”) diesel and jet fuel, ethanol, hydrogen and power at industry-leading yields. The ClearFuels proprietary thermochemical conversion process is based on its advanced High Efficiency Hydrothermal Reformation (HEHTR) technology for biomass-to-syngas conversion (BTG). This modular flexible BTG technology platform, in combination with various synthetic gas-to-liquid (GTL) technologies and co-locating its biorefineries at sugar mills, wood processing and other biomass processing facilities, provides a reduced risk, lower overall cost commercial strategy in line with ClearFuels vision for production of clean clear biofuels.
About BNP Paribas. BNP Paribas (www.bnpparibas.com) is one of the 6 strongest banks in the world according to Standard & Poor's. With a presence in 85 countries and more than 205,000 employees, 165,200 of which in Europe, BNP Paribas is a global-scale European leader in financial services. It holds key positions in its three activities: Retail banking, Investment Solutions and Corporate & Investment Banking. The Group benefits from its four domestic markets: Belgium, France, Italy and Luxembourg. BNP Paribas also has a significant presence in the United States and strong positions in Asia and the emerging markets.
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 proven 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 is provided under an alliance with UOP, a Honeywell company. Rentech develops projects and licenses 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.
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