|The proposed site is a former country club now attached to the Natchez Adams County Industrial Park & Port.|
Rentech has entered into an agreement with the Adams County, Mississippi Board of Supervisors which provides a six-month exclusivity for the parties to negotiate a contract under which Rentech would purchase or lease a site on a long-term basis for a proposed 10,000-plus barrel per day Fischer-Tropsch coal-to-liquids (CTL) strategic fuels plant. (Earlier post.)
Rentech is proposing to build and operate the CTL plant at an industrial site located just outside the Natchez city limits and along the Mississippi river in Adams county. The earlier estimated cost of the plant is between $650 million and $750 million.
Synthetic fuels from the plant would be used within the region and in crisis situations such as those resulting from the strikes by Hurricanes Katrina and Rita. The fuels from the 10,000-plus barrel per day plant would be provided preferentially to emergency facilities and first responders for their backup power and fuel needs.
According to Rentech, CTL diesel fuels have a shelf life of at least eight years where petroleum-based diesel fuels must be rotated on a regular basis every three to six months due to the formation of gum residues in the fuel. By having a reliable standby fuel with a long shelf life, emergency agencies will be able to supply the necessary support immediately during critical situations like those presented during Hurricanes Katrina and Rita.
The Adams/Natchez site is well-suited for the project as it has existing barge and rail access. The property is situated on a very level geographical plane, making it easy to ship and receive coal feedstocks and products from the north or south on the Mississippi, as well as receive ocean-going barges.
Rentech hopes to build the plant by 2010.