Rentech, Inc. Engages The Abraham Group
February 16, 2006
Former US Energy Secretary Spencer Abraham, to Advise on Coal-to-Liquids Initiatives
Rentech, Inc. announced today that it has engaged former U.S. Energy Secretary Spencer Abraham's consulting firm, The Abraham Group, LLC, to provide strategic advice and assistance to the company on its domestic coal-to-liquids (CTL) initiatives.
“The future of United States energy policy is dependent on deploying innovative technologies on coal, our country's greatest energy resource, in a clean and responsible manner,” said Mr. Abraham, Chairman and CEO of The Abraham Group, LLC. “Rentech's proprietary coal-to-liquids technology gives us the opportunity to utilize coal to produce ultra-clean fuels for the nation while protecting the environment and creating jobs.”
Rentech is seeking to obtain federal loan guarantees authorized in the 2005 energy law for the construction of commercial CTL plants in the United States. “The application of Fischer-Tropsch (FT) coal-to-liquids technologies, like Rentech's, could be an essential tool in President Bush's new Advanced Energy Initiative to reduce America's dependence on imported oil,” stated Mr. Abraham.
Rentech's FT coal-to-liquids technology utilizes the process of converting synthesis gas (a combination of hydrogen and carbon monoxide) made from coal, or petroleum coke from gasification technology. The harmful pollutants in the coal are sequestered from the environment in the gasification step. The synthesis gas is then sent to the Rentech FT reactor where it passes over a patented catalyst and is converted into ultra-clean fuels that have a very low sulfur content, less than one part per million, and are biodegradable.
The Abraham Group, LLC, is a Washington, D.C. based international strategic consulting firm that specializes in assisting clients seeking opportunities in the energy sector. The firm's Chairman and CEO, Mr. Abraham, served as U.S. Secretary of Energy from 2001 to 2005 and as a U.S. Senator from 1995 to 2001. His partners include Joseph McMonigle, the firm's President, who was former Chief of Staff at the U.S. Department of Energy and Vice Chairman of the International Energy Agency Board of Governors; and Majida Mourad, the firm's Vice President, who served as Senior Advisor to the Secretary as a lead Department representative on international energy matters.
About Rentech, Inc.
Rentech, Inc., a Colorado corporation formed in 1981, develops technology and projects to transform underutilized hydrocarbon resources into valuable alternative fuels and clean chemicals. To execute this strategy, it 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 fuels, naphtha, waxes, and fuel for fuel cells.
Safe Harbor Statement
Certain information included in this report contains, and other reports or materials filed or to be filed by us with the Securities and Exchange Commission (as well as information included in oral statements or other written statements made or to be made by us or our management) contain or will contain, “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended; Section 27A of the Act; and pursuant to the Private Securities Litigation Reform Act of 1995. The forward-looking statements may relate to financial results and plans for future business activities, and are thus prospective. The forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. They can be identified by the use of terminology such as “may,” “will,” “expect,” “believe,” “intend,” “plan,” “estimate,” “anticipate,” “should” and other comparable terms or the negative of them. You are cautioned that, while forward-looking statements reflect our good faith belief and best judgment based upon current information, they are not guarantees of future performance and are subject to known and unknown risks and uncertainties. Factors that could affect our results include our ability to obtain financing for working capital purposes, for our subsequent conversions of the plants to use coal as a feedstock and to produce liquid hydrocarbon products using our technology; our success in purchasing and converting that plant; our ability to obtain natural gas at reasonable prices while we convert the plant to use coal; our ability to secure a long-term coal supply contract on reasonable terms; prices for the products of the plant; environmental requirements; success in obtaining customers for our technology and services; the decision of our licensees and potential licensees to proceed with and the timing of any project using our technology; the entry into definitive agreements with others related to a project, or the assurance of success in securing Federal aid by the Abraham Group, LLC and the risk factors detailed from time to time in our periodic reports and registration statements filed with the Securities and Exchange Commission. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995, and thus are current only as of the date made. Other factors that could cause actual results to differ from those reflected in the forward-looking statements include dangers associated with construction and operation of gas processing plants like those using the Rentech Process, risks inherent in making investments and conducting business in foreign countries, protection of intellectual property rights, competition, and other risks described in our various public reports.