Rentech awarded $23M grant by Dept. of Energy

Published 12:00 am Sunday, January 31, 2010

LOS ANGELES — Rentech, Inc. (NYSE AMEX: RTK) and ClearFuels Technology Inc. (ClearFuels) jointly announced last week that their project to construct a biomass gasifier at Rentech’s Energy Technology Center in Denver has been awarded a conditional $22.6 million grant from the U.S. Department of Energy.

The gasifier will be integrated with Rentech’s Product Demonstration Unit for the production of renewable synthetic fuels from biomass.

The conditional award follows the DOE’s selection of the project in December 2009 to receive funds under the American Recovery and Reinvestment Act to validate refining technologies and help lay the foundation for full commercial-scale development of an advanced bio-fuels industry in the United States.

The award is conditional upon final approval of the application and any supplemental information as well as completion of negotiations.

The grant award will be used to manufacture and install at RETC a 20 ton-per-day ClearFuels biomass gasifier designed to produce synthesis gas from various wood waste and sugar cane bagasse feedstocks.