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U.S. Department of Energy Awards $22.6 Million Grant for Rentech and ClearFuels Technology’s Biomass Gasifier Project

The U.S. Department of Energy (DOE) has awarded a conditional grant of $22.6 million for the construction of a biomass gasifier project that is being jointly developed by Rentech and ClearFuels Technology. The project is proposed to be constructed at Rentech’s Energy Technology Center in Denver and will be integrated with its Product Demonstration Unit (PDU). Renewable synthetic fuels from biomass will be produced from this project.

In December 2009, DOE had selected this project and offered the conditional award under the American Recovery and Reinvestment Act to develop refining technologies and for the advancement of the development to commercialize scale to help lay the foundation for advanced bio-fuels industry in the country. The conditional grant depends on the final approval of the application, submission of supplemental information if any, and completion of negotiations.

The award from DOE will be utilized to manufacture and install a ClearFuels biomass gasifier at Rentech’s Energy Technology Center. The gasifier will produce synthesis gas from feedstocks such as sugarcane bagasse and wood waste. The PDU at Rentech utilizes the UOP’s upgrading technologies and Rentech Process to produce renewable diesel and synthetic jet fuels at demonstration scale. The biomass gasifier will be integrated with this PDU. The team for the integrated bio-refinery demonstration project includes Hawaii Natural Energy Institute, Hawaiian Electric Company, National Renewable Energy Lab, ClearFuels, Rentech, URS, and Linde/Hydro-Chem. The demonstration project is expected to be completed by late 2011.

D. Hunt Ramsbottom, President and Chief Executive Officer of Rentech, commented that the company is delighted with the award granted by DOE, which acknowledges the value of combining ClearFuel and Rentech’s technologies for the production of renewable synthetic fuels. He further said that the implementation of the joint technologies at renewable energy projects for commercial scale production of synthetic fuels will help the country to meet its green energy goals as well as create green jobs.

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