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DKRW Selects Rentech for Medicine Bow Coal-to-Liquids Plant

17 January 2006

Rentech has signed a Master License Agreement (MLA) with DKRW Advanced Fuels, a wholly-owned subsidiary of DKRW Energy, for the use of Rentech’s Fischer-Tropsch (FT) coal-to-liquids (CTL) technology.

Concurrent with the signing of the MLA, DKRW-AF’s wholly owned-subsidiary, Medicine Bow Fuel & Power LLC (MBF&P), signed an individual site license for its proposed integrated power and coal-to-liquids (CTL) project in Medicine Bow, Wyoming (earlier post).

The first phase of the project is being designed to produce 10,000 bpd of CTL fuels from Carbon Basin coal and 200 MW of co-produced electric power. Ultimately, MBF&P intends to expand the CTL production capacity of the plant to a total of 40,000 bpd.

MBF&P has already entered into an agreement with Arch Coal for the purchase of coal reserves and to act as operator for a new mine sufficient to support up to seven million tons per year of coal supply for the Medicine Bow project.

Under the terms of the MLA, Rentech will also be the exclusive FT technology provider for all future DKRW-AF coal-to-liquids plants. DKRW-AF will pay Rentech license fees and associated payments and will have the right to produce up to 500,000 barrels per day using the Rentech Process Technology, including the capacity from the Medicine Bow Project.

The agreement with DKRW represents Rentech’s first domestic CTL license application. Rentech is also working on two plants of its own (earlier post).

The signing of this licensing agreement is a milestone for Rentech and domestic CTL development...It also marks what we believe to be the kickoff of the full domestic implementation of Rentech's mission to develop technology and commercial projects that transform underutilized hydrocarbon resources, like coal, into valuable alternative fuels, chemicals and power.

—Hunt Ramsbottom, Rentech President and CEO

January 17, 2006 in Coal-to-Liquids (CTL) | Permalink | Comments (0) | TrackBack (0)

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