|Rentech uses a proprietary iron catalyst well-suited to CTL projects. Click to enlarge.|
The Mingo County Redevelopment Authority (MCRA), Williamson, West Virginia and Rentech, Inc. have entered into a Joint Development Agreement (JDA) for the development of a Fischer-Tropsch (FT) Coal-to-Liquids (CTL) fuels plant to be located in Mingo County (the Mingo Project).
Located in the lower portion of southwestern West Virginia, the Mingo Project would utilize Rentech’s Fischer-Tropsch technology to convert synthesis gas, a combination of hydrogen and carbon monoxide produced from the West Virginia coal, into transportation fuels to be used in the Mingo County region.
The parties intend to cooperate to develop, finance, own and operate the project which could produce approximately 10,000 to 30,000 barrels per day of the ultra-clean fuels.
The initial phase of the project will entail a 60-day due diligence period to be initiated within the first week of January 2007. Providing the due diligence phase indicates that the project is viable, Rentech and the MRCA will continue to evaluate the project in stages by determining the scope and feasibility of the project.
After successful completion of these initial stages, Rentech and MCRA expect to establish a project entity and then move forward with engineering, financing, and the construction of the facility. Initially, the parties will share the costs of any third party development expenses and have equal interests in the project.
Rentech is also involved in emerging CTL projects in Montana and Wyoming. (Earlier post.)
Rentech uses a proprietary iron-based catalyst in its Fischer-Tropsch reactors. According to the company, the qualities of the iron-based catalyst make it very flexible, and able to convert economically the synthesis gas made from the widest range of hydrocarbon feedstocks.
Specific to CTL projects, the iron catalyst can tolerate low levels of sulfur contamination and ammonia compounds present in the syngas and still maintain economic levels of conversion. By contrast, cobalt compounds have little or no resistance to such poisons in the syngas.