Rentech in Reverse

While most companies in the gasification industry are concentrated on proving the technology and securing commercial contracts, Rentech, Inc. lept ahead to the next step. Setting its sights on the Holy Grail of waste to energy, the company focused on creating synthetic transportation fuel that is clean enough to be used in pipelines and engines.

Rentech has developed a patented version of the Fischer-Tropsch process, utilizing components from smaller companies it has acquired over several years. Dubbed the Rentech Process, the company uses one of two gasifiers, a catalyst, reactor and upgrader to convert biomass and waste materials into ultra-clean synthetic fuel and chemicals.

Although the Rentech Process can work with a variety of feedstocks, the company is primarily focused on cellulosic materials. After purchasing SilvaGas, Inc. in 2009, Rentech began offering the Rentech-SilvaGas gasifier. The patented technology was originally developed in collaboration with Battelle Labs and the U.S. Dept. of Energy as part of its Biomass Power Program.  A unit ran for several years in the McNeil Power Station of Burlington, Vt. although web searches haven’t been able to verify if it is still in operation or owned by Rentech.

Rentech also owns the Rentech-ClearFuels gasifier, which has a product demonstration unit in Commerce City, Colo. Using a hydrothermal reformer, the gasifier produces hydrogen in addition to a syngas. According to transcripts of the company’s quarterly earnings call to investors, Rentech purchased SilvaGas and its gasifier because it was further down the path to commercial development than the one it had been developing with ClearFuels.

Courtesy: Rentech, Inc. 

The iron-based catalyst used in the Rentech Process is the most critical component, according to the company. As the only North American-based company using it, the iron-based catalyst is mixed with liquid wax in a slurry bubble column reactor. The syngas is then upgraded to synthetic diesel fuel (RenDiesel) or jet fuel (RenJet) using UOP’s upgrader. The jet fuel produced can be blended with conventional jet fuel for use in military and smaller commercial planes.

While Rentech was initially involved in several projects, the 2011 fourth-quarter earnings call transcript states that they have altered their direction and are backtracking a bit. The company has abandoned proposed projects in Port St. Joe, Fla. and Natchez, Miss. and is trying to find a new outlet for the rights to the 1.3 million tons of timber it purchased from the Province of Ontario.

Better BTU Take: While we applaud Rentech’s initiative, we feel that this is yet another illustration of a company investing in several projects before having a clear idea of what is actually involved in developing a project of this magnitude. With the rate of announced projects exponentially higher than completed projects, each cancelled project lends credibility to detractors from the renewable energy industry that say it doesn’t work.

As every company in this industry has had to overcome both financial and regulatory obstacles, we look forward to seeing where Rentech goes after regrouping. 

Rentech's CEO Discusses Q4 2011 Results

Rentech Company Website