Rentech, Inc. (Amex: RTK - News) has commented on its agreement between its technology licensee DKRW Advanced Fuels LLC, Inc. ("DRKW-AF"), and St. Louis-based Arch Coal (NYSE: ACI - News), one of the largest coal producers in the United States, under which Arch acquired a 25 percent stake in DKRW-AF. Arch announced that it has agreed to invest $25 million in DRKW-AF, and it has entered into a new agreement whereby Arch and DKRW-AF will explore potential reserves and project opportunities in two other coal basins. DRKW-AF is developing an initial 10,000 barrel per day Wyoming coal-to-liquids (CTL) project that will utilize Rentech's patented and proprietary synthetic fuels process.
"We believe that this agreement reflects the growing recognition by leading coal companies such as Peabody Energy Corp. and Arch Coal of the unique role that our technology can play in developing a cost-effective alternative source of energy," said D. Hunt Ramsbottom, president and CEO of Rentech. "It creates the potential for the expansion of DKRW's coal-to-liquids development with a significant partner who owns large coal reserves. These projects, combined with Rentech's ongoing commercialization efforts continue to demonstrate that CTL technology and ultra clean synthetic fuels will be significant contributors to the United States' efforts regarding energy security and independence."
Rentech, Inc., utilizes its patented and proprietary Fischer-Tropsch gas-to-liquids/coal-to-liquids process for conversion of synthesis gas made from natural gas, coal and other solid or liquid carbon-bearing materials into clean burning, ultra-low-sulfur and ultra-low-aromatic synthetic fuels.