Rentech takes 25% stake in biofuel firm ClearFuels
Rentech holds the Rentech Process and the Fischer-Tropsch Process. Both of Rentech’s processes can achieve ASTM biodiesel and petrodiesel specifications. Image courtesy of Rentech, Inc.Rentech, Inc. announced on June 24 that it has acquired a 25% stake in cellulosic biofuel company ClearFuels Technology in a strategic investment and strategic partnership.
Both companies hold important technologies in renewable fuel production that will complement each other. ClearFuels holds its proprietary flexible biomass gasification technology platform (BTG) that uses its high efficiency hydrothermal reformation technology (HEHTR) that converts multiple cellulosic biomass feedstocks such as sugarcane bagasse and virgin wood waste into synthesis gas (syngas). Syngas is used for the synthetic gas-to-liquid fuel technologies. Rentech holds the Rentech Process, a patented proprietary technology that converts synthesis gas from biomass and fossil sources into ultra-clean synthetic fuels, specialty waxes, and chemicals. Rentech also holds the Fischer-Tropsch Process used in the production of certified renewable synthetic jet and diesel fuels. Both of Rentech’s processes can achieve ASTM biodiesel and petrodiesel specifications as direct substitutions of petroleum-based fuels.
ClearFuels has now signed an exclusive worldwide license agreement for Rentech’s Fischer-Tropsch Process. The agreement will enable ClearFuels to also achieve ASTM biodiesel and petrodiesel standards and use it as a straight substitution for regular gas and diesel. ClearFuels will also have the license to use the Fischer-Tropsch Process to produce renewable synthetic fuels from virgin wood waste in as many as 12 US-based projects.
ClearFuels has already begun project development of several commercial-scale biomass-to-energy projects in the southeast US, Hawaii, and around the world that will use the ClearFuels-Rentech design in locations such as sugar mills and wood processing facilities. The wood waste projects on their own are estimated to have an annual aggregate capacity of 100 million gallons of renewable synthetic fuels and 30 megawatts of renewable electricity.
The Rentech Production Demonstration Unit (PDU) at Commerce City, Colorado will have a ClearFuels gasifier installed to enable syngas production from bagasse, virgin wood waste, and other cellulosic feedstock. The demonstration facility will be using the ClearFuels gasifier, and Rentech’s Fischer-Tropsch
Process to produce renewable jet fuel diesel at a demonstration scale. Both companies will provide funding and technology, with the configuration being used as the basis for future commercial facilities. The existing PDU is capable of producing 420 gallons of synthetic jet fuel and diesel from natural gas. The installation of the ClearFuels gasifier by the second half of 2010 will enable the PDU to process biomass and fossil fuel sources into jet and diesel fuel at a demonstration scale. Early analysis shows that renewable diesel produced using the ClearFuels-Rentech Process at the PDU results in an 80% reduction of greenhouse gas emissions, 40% less sulfur oxides, and 10% less particulates per mile when compared to petroleum diesel.
ClearFuels Technology Inc. is a private company that was established in 1998.
Rentech, Inc. is clean energy company that was established in 1981. It also has its wholly-owned subsidiary Rentech Energy Midwest Corporation which is involved in fertilizer products. The company is listed on the NYSE as RTK. Its stock was up 1.72% at the close of June 24 trading, closing at $0.59.
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Mike R. Lopez
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