Fluor to Provide FEED Services to Rialto Renewable Energy Project

Rentech, Inc. (NYSE AMEX: RTK) and Fluor Corporation (NYSE: FLR) jointly announced today that they have signed a contract under which Fluor will provide front-end engineering and design (FEED) services for the Rialto Renewable Energy Center (Rialto Project), being developed by Rentech.

Under the agreement, Fluor will perform FEED services for the facility and the supporting infrastructure for the project. The Rialto Project, which will use green waste as feedstock, is expected to be the first commercial biomass gasification facility in the United States that will co-produce renewable synthetic diesel fuel and renewable electric power.

"We are very pleased that a firm of Fluor’s stature was our leading bidder and will be our FEED partner for our Rialto renewable energy project. Fluor’s experience and expertise in gasification and Fischer-Tropsch projects will help us move quickly and efficiently through the design stage for what we expect to be the country’s first commercial-scale renewable synthetic fuels and power facility," said D. Hunt Ramsbottom, President and CEO of Rentech. Mr. Ramsbottom continued, “We believe the Rialto Project will change the energy landscape. Our project is an example of how innovative domestic technologies can create environmentally superior alternative sources of drop-in, certified renewable synthetic fuels and base-load power from waste materials, while creating much-needed domestic jobs.”

“We are taking a leading role in the renewables energy space by assisting Rentech with this unique clean-fuel and power biomass project,” said Dave Dunning, president of Fluor’s Power Group. “We hope to assist Rentech to further develop this renewable energy project and take it from the design stage to reality.”

The award of the FEED contract to Fluor follows the completion of the project’s feasibility engineering in December 2009. Rentech expects to file major permit applications for this renewable energy project during the first half of this calendar year.

The Rialto Project will utilize Rentech’s key technologies, including its Rentech-SilvaGas biomass gasification system and Rentech’s Fischer-Tropsch synthetic fuels conversion technology (Rentech Process). Final product upgrading will be provided by UOP, a Honeywell company.

The Rialto Project is designed to produce approximately 640 barrels-per-day of renewable, ultra-clean synthetic fuels and 35 megawatts of base-load renewable electricity (enough to power approximately 30,000 homes), from urban woody green waste, such as yard and tree trimmings. The life-cycle carbon footprint of the fuels and power is expected to be near zero, and the renewable power (RenPower(TM)) meets the requirements of California’s Renewable Portfolio Standard.

RenDiesel®, Rentech’s renewable synthetic diesel, exceeds all applicable fuels standards, is biodegradable and is virtually free of particulates, sulfur and aromatics. RenDiesel®, a drop-in fuel, 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.

In August 2009, eight airlines, including Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Southwest Airlines, United Airlines, UPS Airlines and US Airways, signed an unprecedented multi-year agreement with Rentech to purchase up to 1.5 million gallons per year of RenDiesel® to be supplied by the Rialto Project, for use in ground service equipment at Los Angeles International Airport (LAX).

Fluor has executed more than 20 gasification projects globally and performed more than 150 gasification feasibility studies. In addition, Fluor has helped develop the major Fischer-Tropsch plants in operation today.

Source: http://www.fluor.com/

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