elects to supply timber for renewable fuels
Rentech, Inc. announced that its proposed
Olympiad Renewable Energy Centre has been selected by the Province
of Ontario for a proposed supply of up to 1.3 million tons per
year of Crown timber. The wood supply, composed primarily of
forest waste and un-marketable species, would be used for the
sustainable production of renewable RenJet®, Rentech’s clean
certified low-carbon jet fuel.
The proposed wood allocation to Rentech’s project is the largest
ever awarded in the Provincial Wood Supply Competitive Process
administered by the Ontario Ministry of Northern Development,
Mines and Forestry. The award would provide Rentech with a reliable
long-term supply of biomass for its Olympiad Project. The Ministry
selected Rentech’s proposal as the best proposed use of the available
timber. The selection is the first step in the process of making
the wood supply available to the project.
Rentech’s Olympiad Project is being designed to produce approximately
23 million gallons annually of renewable and certified low-carbon
RenJet fuel. The project will also produce 13 million gallons
annually of renewable naphtha, a chemical feedstock.
The Olympiad Project, scheduled to be in service in 2015, will
be designed as a state-of-the-art renewable energy facility that
will employ the company’s Rentech-ClearFuels biomass gasification
system and the Rentech Process to produce the only type of alternative
jet fuel certified for use in commercial aviation today. These
technologies will enable Rentech to turn primarily un-marketable
and underutilized timber into clean, renewable jet fuel.
Rentech is working closely with Sustainable Development Technology
Canada (SDTC), whose C$500 million NextGen Biofuels Fund (NGBF)
offers a significant potential funding source for the Olympiad
Project. After a year of discussions with SDTC, Rentech has recently
submitted an application for funding to the NGBF, which funds
up to 40 percent to a maximum of C$200 million of eligible project
development and construction costs, which would be repaid from
a percentage of the project’s cash flows.