Rentech to Supply Renewable Synthetic Fuels to Eight Airlines for Ground Service Equipment Operations at Los Angeles International Airport
Initial Purchasers Include Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Southwest Airlines, United Airlines, UPS Airlines and US Airways, with Potential for Additional Purchasers
LOS ANGELES (August 18, 2009) - Rentech, Inc. (NYSE AMEX: RTK) announced today that it has signed an unprecedented multi-year agreement to supply eight airlines with up to 1.5 million gallons per year of renewable synthetic diesel (RenDiesel'¬®) for ground service equipment operations at Los Angeles International Airport (LAX) beginning in late 2012, when the plant that will produce the fuel is scheduled to go into service.
The initial purchasers under the agreement with Aircraft Service International Group (ASIG), the entity that provides fueling services to many airlines that operate at LAX, are Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Southwest Airlines, United Airlines, UPS Airlines and US Airways. Additional airline purchasers of RenDiesel'¬® can be added under the agreement with ASIG.
The agreement is the first of its kind to supply renewable synthetic fuels to multiple domestic airlines. The renewable RenDiesel'¬® fuel to be supplied to the airlines would be produced from green waste at Rentech's proposed Rialto Renewable Energy Center (Rialto Project). The renewable diesel fuel will have a carbon footprint of near zero. RenDiesel'¬® exceeds all applicable fuels standards, is biodegradable and is virtually free of particulates, sulfur and aromatics. RenDiesel'¬® is compatible with existing engines and pipelines, providing an immediate solution to the transportation sector's requirements to meet targets established by California's Low Carbon Fuel Standard.
D. Hunt Ramsbottom, President and Chief Executive Officer of Rentech said, "This commercial purchase contract among Rentech, ASIG and the airlines validates the growing demand for synthetic fuels produced by the Rentech Process. The low-emissions profile and near-zero carbon footprint of our renewable RenDiesel will guarantee that the LAX ground service vehicles using this fuel will be among the cleanest and greenest of their kind." Mr. Ramsbottom continued, "We expect this agreement to serve as a model for future supply relationships at other airports and for other fuels, including Rentech's synthetic jet fuel, which was recently approved for commercial airline use."
Glenn F. Tilton, Air Transport Association of America (ATA) Board Chairman and UAL Corporation Chairman, President and Chief Executive Officer, said, "We are proud to take part in this innovative, collective endeavor that, over time, will further reduce greenhouse gas emissions and improve local air quality through the use of greener fuels." Mr. Tilton continued, "This transaction promises to be the first of many such green fuel purchase agreements by the commercial aviation industry. It exemplifies the ongoing commitment of airlines and energy suppliers to diversify our fuel sources while contributing to a cleaner environment and adding new jobs to the economy."
ASIG is thrilled to have been instrumental in reaching this landmark deal with the airlines and Rentech, reinforcing our strong commitment to our airline customers and environmental stewardship," said ASIG President Keith P. Ryan. "We are proud to be on the forefront of this innovative effort to advance aviation environmental progress."
Gina Marie Lindsey, Executive Director of Los Angeles World Airports (LAWA), commented, "This collaborative effort is yet another environmentally friendly initiative that we and the airlines are pursuing at Los Angeles-area airports. It shows what we can accomplish by working together toward a common and necessary goal."
Rentech is developing a commercial-scale facility in Rialto, California, to produce renewable electric power and the cleanest diesel in California, each with a carbon footprint near zero. The project is currently designed to produce approximately 600 barrels per day of renewable, ultra-clean synthetic fuels and 35 megawatts of renewable electricity (enough to power approximately. 30,000 homes), primarily from urban woody green waste, such as yard clippings. The facility is expected to come online in 2012.
The ATA's press release on this announcement is accessible at http://www.airlines.org/news/releases/2009/news_8-18-09.htm.
About Rentech, Inc.
Rentech, Inc. (www.rentechinc.com), incorporated in 1981, provides clean energy solutions. The Company's Rentech-SilvaGas biomass gasification process can convert multiple biomass feedstocks into synthesis gas (syngas) for production of renewable fuels and power. Combining the gasification process with Rentech's unique application of proven syngas conditioning and clean-up technology and the patented Rentech Process based on Fischer-Tropsch chemistry, Rentech offers an integrated solution for production of synthetic fuels from biomass. The Rentech Process can also convert syngas from fossil resources into ultra-clean synthetic jet and diesel fuels, specialty waxes and chemicals. Final product upgrading is provided under an alliance with UOP, a Honeywell company. Rentech develops projects and licenses these technologies for application in synthetic fuels and power facilities worldwide. Rentech Energy Midwest Corporation, the Company's wholly-owned subsidiary, manufactures and sells nitrogen fertilizer products including ammonia, urea ammonia nitrate, urea granule, and urea solution in the corn-belt region of the central United States.
Founded in 1936, ATA is the nation's oldest and largest airline trade association, representing the nation's leading airlines. Since its inception, it has played a major role in all of the significant government decisions regarding aviation, including the creation of the Civil Aeronautics Board and the Federal Aviation Administration, the creation of the air traffic control system, airline deregulation and, more recently, with the aftermath of the 9/11 attack on America. ATA airline members and their affiliates transport more than 90 percent of all U.S. passenger and cargo traffic. Annually, commercial aviation helps drive $1.1 trillion in U.S. economic activity and more than 10 million U.S. jobs. On a daily basis, U.S. airlines operate nearly 30,000 flights in 77 countries, using more than 6,000 aircraft to carry an average of two million passengers and 50,000 tons of cargo. For additional industry information, visit www.airlines.org.
ASIG is a global provider of ground, fuel, cargo and airport facility services to airlines, airports, oil companies and industry partners. The company's 7,500 highly qualified aviation service professionals safely handle millions of flights and deliver 9 billion gallons of jet fuel annually. ASIG maintains and operates jet fuel facilities at 43 airports and provides aircraft refueling services at 54 airports worldwide. ASIG has won numerous industry awards for their fuel services line of business. The company offers flexible, comprehensive service solutions that deliver value and quality across a network of 67 airports in North America, Europe and Asia. ASIG is part of BBA Aviation, PLC, a world leader in the provision of Flight Support and Aftermarket Services and Systems for commercial aviation, business aviation, regional airline, military operators, including FBO services, fueling, ground handling, turbine engine repair and overhaul and aviation components, landing gear and hydraulic systems.
Los Angeles World Airports is the Los Angeles city department that owns and operates a system of three airports: Los Angeles International (LAX), LA/Ontario International (ONT) and Van Nuys (VNY). Each plays an integral role in helping to meet the Southern California regional demand for passenger, cargo and general aviation service. Each airport makes a distinct contribution to the strength of the system as it provides a high level of safety, security and service for its customers, communities and stakeholders. LAX is the sixth busiest airport internationally and the third busiest in the United States. Ontario ranks 59 among U.S. airports. Van Nuys ranks 25 internationally in the number of flight operations, and is the world\'s busiest general aviation airport.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 about matters such as the Company's development of a proposed synthetic fuels facility in Rialto, California, the emissions profile of the renewable power and fuels to be produced at the facility, the characteristics of the renewable fuels to be produced, the expected timeline for the facility, and the sale of fuel from the facility. These statements are based on management\'s current expectations and actual results may differ materially as a result of various risks and uncertainties. Other factors that could cause actual results to differ from those reflected in the forward-looking statements include the financial means of Rentech to build the proposed project, fluctuations in commodities prices including the price of oil and the materials necessary to construct a project, the impact of changing government regulations on the project permitting process and the qualification of renewable power and fuels and factors set forth in the Company\'s press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech\'s web site at www.rentechinc.com. The forward-looking statements in this press release are made as of the date of this release, and Rentech does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.