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Rentech: Creating A Diversified Energy Platform
April 21, 2011Advanced Biofuels Leadership ConferenceHunt Ramsbottom, President & CEO
Clean Energy Solutions 22
Conversion of low-value feedstocks into high-value, useful products which have
market demand
Rentech’s Business Model
Clean Energy Solutions 33
• Rentech owns demonstrated energy conversion technologies
• Products are certified, high-quality, ready-to-use, with customers
• Pursue energy projects that deploy energy technologies (Rentech’s or partners) and generate financeable rates of return
Rentech’s Business Model
Clean Energy Solutions 44
• Develop, own & operate; license
• Invest in R&D to continue to capture market share by broadening technology portfolio, increase efficiency and drive down costs
• Each barrel of fuel and megawatt hour of power produced will reduce emissions of pollutants and life-cycle carbon compared to traditional energy sources
Rentech’s Business Model
Clean Energy Solutions 5
Multiple Pathways, Multiple Products
Wood / Timber
Bagasse & Wood
Rentech’s Port St. Joe Renewable
Energy Center
Rentech-SilvaGas Biomass Gasifier
Renewable Power
Woody Green Waste
Rentech’s Rialto Renewable
Energy Center
Rentech-SilvaGas Biomass Gasifier +
Rentech Fischer-Tropsch
Renewable Fuels
PDUBio-Refinery
Demonstration Project
Rentech-ClearFuels Biomass Gasifier +
Rentech Fischer-Tropsch
Renewable Fuels
Clean Energy Solutions 6
Multiple Pathways, Multiple Products
Natural Gas
Rentech’s Natchez Project
Rentech Biomass GasifierSMR
Rentech Fischer-Tropsch
Synthetic FuelsWoody Green Waste
Nitrogen Fertilizer Rentech Energy Midwest Corporation
Natural Gas
Clean Energy Solutions 7
Technology Diversity – One Technology Does Not Fit All
Different front-end technologies process different feedstocks
Multiple front-end technologies enable Rentech to pursue opportunities in many markets for fuels and power production
Biomass Feedstock Conversion: Proprietary Biomass Gasification
McNeil Generating Station – Burlington,
VT
Rentech-SilvaGas Gasifier
ClearFuels Gasifier
ClearFuels Demo Site
Integrated Bio-Refinery at PDU with CF Gasifier
Other Feedstock Conversion:Commercially Available
Technologies
Steam Methane Reformer – Natural Gas
Gasification – Pet Coke; etc.
Clean Energy Solutions 8
Technology Diversity – Creating a Value Chain
Drop-In Synthetic Fuels: Rentech Fischer-Tropsch
Synhytech Reactors
DOE LaPorte Facility
Product Demonstration Unit
H2 +CO (SynGas)
Clear Wax
Light Products
Waxy Products
Fischer-Tropsch Reactor
Product Upgrading
Syngas from front-end technologies paired with Rentech’s Fischer-Tropsch Process and UOP’s upgrading technologies to produce refined certified synthetic fuels
Clean Energy Solutions 9
Rentech Fischer-TropschProcess
Commercially-AvailableCombined Cycle Power Block
Clean Power
Naphtha
RenChem®
Naphtha
Diesel or Jet Fuel
RenDiesel®
RenJet®
Fully-Integrated, End-to-End Value Chain
Upgrading
Upgrading SystemBagasse
Switchgrass
Ag Waste
Wood / Timber
Grass
Other Biomass
Natural Gas
Rentech-SilvaGasBiomass Gasification System
ClearFuelsBiomass Gasification System
Licensed Third Party
Steam Methane
Reformer
No energy input needed to run facilities other than feedstock once a plant is up and running
Nitrogen Fertilizer
Clean Energy Solutions 10
• PDU – World-Leading Demonstration Facility: 40,000 gal+ of certified drop-in diesel and jet fuel production since Aug 2008
• Approx. $250 million invested in technology development
• Approx. $85 million invested in demonstration plant
• Currently integrating a ClearFuels gasifier onsite as part of the DOE co-funded Integrated Bio-Refinery Project – renewable fuels production targeted for end of year
• Rentech Energy Technology Center: Goals for increasing efficiency &yields – targeting yield improvement from approx. 35 gal of drop-in fuel/ton to approx. 75 gal of drop-in/ton
10
Investment in Technology Portfolio
Clean Energy Solutions 11
• Finished Products: Certified diesel and jet fuels• Only alternative fuel type certified for commercial aviation and military use• Diesel meets ASTM D975 specs
• Drop-in fuels• No blending limitations or infrastructure barriers
• All Rentech’s renewable fuels qualify for cellulosic RINs• 1.7 RINS per gallon of renewable fuel produced • Current value: approx. $1.40/RIN
• Addresses EU Emissions Trading Scheme and other renewable and low-carbon fuels mandates
11
Rentech’s fuels burn cleaner
Products: Certified Clean, Drop-In Fuels
Clean Energy Solutions 12
• Renewable baseload power
• Qualifies for FIT and RPS mandates
12
Products: Clean Power
Clean Energy Solutions 13
RenDiesel®
• Airline customers: Long-term contract with ASIG and 8 airlines to buy renewable RenDiesel from proposed Rialto Project for use in ground service equipment at LAX
RenJet ®
• Airline customers: MOU with 13 carriers for RenJet fuel to be produced at proposed Natchez Project; LOI for proposed Solena European renewable jet fuel project using Rentech’s FT technology
RenPowerTM
• Utility: 20-year Power Purchase Agreement with Progress Energy Florida for approx. 50 MW of renewable RenPower to be produced at proposed Port St. Joe Project
Eureka! Diesel Drives the Future’ event with Audi & Green Car Journal
RenJet fueling for United Airlines flight
Customers for All of Rentech’s Fuels and Power Products
Clean Energy Solutions 14
• 55 MW net renewable baseload power from approx. 930 tons/day of woody biomass
• 20-year PPA secured with Progress Energy Florida
• Detailed EPC term sheet signed
• Negotiating term sheet with U.S. Department of Energy for majority of the $225M estimated project cost under 1705 loan guarantee program
• Eligible for federal cash grant for 30% of project costs under 1603 Grant Program
• In service date: 2013
• Port St. Joe, Florida
Renewable Power: Port St. Joe Renewable Energy Center
Rentech-SilvaGas Biomass Gasifier to Renewable Power
Clean Energy Solutions 15
• 1200 – 1500 barrels per day/18M – 23M gal per day of renewable, drop-in diesel or jet fuels from approx. 1000 tons/day of woody green waste
• Renewable fuels qualify for 1.7 RINs/gal
• Small portion of diesel fuel contracted for LAX ground service equipment use with 8 airlines
• In due diligence with U.S. Department of Energy for potential loan guarantee for majority of project cost under 1703 loan guarantee program
• Rialto, CA
Renewable Fuels: Rialto Renewable Energy Center
Rentech-SilvaGas Biomass Gasifier + Rentech Fischer-Tropsch to Renewable Fuels
Clean Energy Solutions 16
• Demonstration of ClearFuels biomass gasifier integrated with Rentech’s existing PDU
• Partially funded by $23M U.S. DOE grant
• Renewable diesel and jet production from bagasse and wood biomass targeted for end of this year
• Successful demonstration will lead to commercialization of ClearFuels biomass gasifier with Rentech FT for renewable diesel and jet fuel facilities
• In active negotiations with Hawaii Electric Company for long-term conditional off-take agreement for renewable diesel from proposed Hawaii project
• Renewable diesel and jet fuels qualify for 1.7 RINs/gal
• ClearFuels to become 95% owned by Rentech in May 2011
• Commerce City, CO
Renewable Fuels: Bio-Refinery Demonstration Project
ClearFuels Biomass Gasifier + Rentech Fischer-Tropsch to Renewable Fuels
ClearFuels Demo Site
Clean Energy Solutions 17
• Evaluating feasibility of project configuration using combinations of feedstocks (biomass harvest timber residuals, natural gas, & others)
• Scoping work for up to 15000 barrels per day project configuration completed by Fluor
• CO2 sequestration solution through contract with Denbury Resources for EOR
• 450 acre site adjacent to Mississippi River
• Signed MOU with 13 carriers for jet fuel off-take
• Adams County, MS
Fuels & Power: Natchez Project
Rentech Biomass Gasifier/SMR/Gasification+ Rentech Fischer-Tropsch to Fuels & Power
Clean Energy Solutions 18
• 40-year+ operating facility
• Approx. 600,000 tons per year of nitrogen fertilizer products sold to corn belt
• Provides operating experience & source of cash flow
• Robust outlook: global grain demand; low input costs; high crop prices
• FY11 EBITDA projection as of 4/5/11: approx. $75M
• Conducting feasibility study to expand plant capacity
Nitrogen Fertilizer: Rentech Energy Midwest Corporation
Syngas Production from Natural Gas to Produce Nitrogen Fertilizer
Clean Energy Solutions 19
Summary
19
• Rentech is in the business of converting low-value energy into high-value products
• Rentech offers unmatched, end-to-end solutions for synthetic fuels and
power production
• Significant technology portfolio:
• Rentech-SilvaGas biomass gasifier (biomass to syngas)
• Rentech-ClearFuels biomass gasifier (biomass to syngas)
• Rentech Fischer-Tropsch Process (syngas to synthetic crude)
• UOP marketing alliance (synthetic crude to refined products)
Clean Energy Solutions 20
Summary
20
• Commercial scale projects underway:
• Port St. Joe Project: Renewable Power
• Rialto Project: Renewable Fuels
• PDU Bio-Refinery Project: Renewable Fuels
• Natchez Project: Synthetic Fuels & Power
• Strategic nitrogen fertilizer asset: source of cash flow & operating
experience; evaluating plant expansion
Clean Energy Solutions 21
Safe Harbor Statement
21
This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and actual results may differ materially as a result of various risks and uncertainties. Other factors that could cause actual results to differ from those reflected in the forward-looking statements are set forth in the Company’s press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech’s web site at www.rentechinc.com. The forward-looking statements in this presentation are made as of the date of this presentation and Rentech does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.
The marks of Air Canada, AirTran Airways, Alaska Airlines, American Airlines, Atlas Air, Continental Airlines, Delta Airlines, FedEx Express, JetBlue Airways, Lufthansa German Airlines, Mexicana Airlines, Polar Air Cargo, Southwest Airlines, United Airlines, UPS Airlines, US Airways and the designs used herein are either registered trademarks or trademarks of the airlines listed. The airlines are not in any way affiliated with and do not sponsor Rentech or Rentech products or services. The marks of Denbury Resources Inc., UOP, A Honeywell Company, Solena Group, the Department of Defense, the Department of Energy, Progress Enery and the designs used herein are either registered trademarks or trademarks of the companies listed. The companies are not in any way affiliated with and do not sponsor Rentech or Rentech products or services.
Rentech: Creating A Diversified Energy Platform
April 21, 2011Advanced Biofuels Leadership ConferenceHunt Ramsbottom, President & CEO