Rentech is a company with a package of technologies to convert
carbonaceous material into liquid fuels and “renewable” power.
• Seeking opportunity in biomass. With new Government incentives for
fuels and energy from biomass, Rentech has tailored its technology to
use woody green waste. This material is either free or Rentech is paid to
take it since the alternative is for the local authority to pay tipping fees
for its disposal.
• Feasibility study for Rialto project is expected soon. The company is
working on a feasibility study, and applying for an air permit for a
biomass to liquids and renewable energy plant, at a site in Rialto,
California. While the expected capex and costs are not known yet, the
proposed plant is expected to produce 600 barrels per day of renewable
synthetic fuels and 35MW of renewable power. RTK has already entered
into a multi-year agreement to supply eight airlines with up to 100bpd pf
RenDiesel for ground service equipment at LAX airport.
• The company continues to fine-tune its designs at its Product
Demonstration Unit or PDU and we visited this facility last week.
The 10 barrels per day unit is in a suburb of Denver and is making
batches of diesel and aviation fuel for testing by potential customers
such as major airlines. With renewable energy requirements looming
and few sources “shovel ready”, Rentech reports growing interest in its
products.
• With oil prices at a modest +/-$70/barrel, investor interest in the
renewable/alternative energy segment has declined. However, large
users of energy like the airlines still face renewable energy standards,
and we expect that the economic case for renewables is likely to recover
as the global economy awakens.
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https://mm.jpmorgan.com/stp/t/c.do?i=8859D-CF&u=a_p*d_326866.pdf*h_286l2otu
