Texaco Press Release - Rentech's Fischer-Tropsch Technology Proposed
FOR IMMEDIATE RELEASE: OCTOBER 22, 1999.
DENVER, Oct. 29 /PRNewswire/ -- Rentech, Inc. (OTC Bulletin Board: RNTK), the Denver-based holding company which developed and licenses a proprietary and patented process, Gas-To-Liquids ("GTL"), for the conversion of gases, solid or liquid carbon-bearing material into valuable liquid hydrocarbons, announced today that Rentech's Fischer-Tropsch (FT) technology is expected to play an important part in a proposed electrical power and FT fuels project in West Australia as announced October 29, 1999 by Hillcrest Resources N.L. ("Hillcrest").
As indicated in that press release, the Global Gas & Power Division of Texaco, Inc. ("Texaco"), Hillcrest, and Australian Power & Energy Corporation Holdings Ltd. ("APEC"), have agreed to enter into formal joint venture negotiations for the development of the proposed Esperance Power Project.
APEC holds the rights to the lignite deposit which underlies the project. The deposit is located at Salmon Gums, approximately 350 miles east southeast of Perth, Australia and 60 miles north of the port town of Esperance.
The deposit is large with a total resource exceeding 2 billion tons. The project focus will be on an area of around 760 million tons. Total indicated oil resources in the lignite zone are approximately 272 million barrels (in the form of kerogen).
Preliminary project sizing is for a 200 megawatt electrical power plant and a 6,000 barrel per day Fischer-Tropsch plant according to principals of Hillcrest and APEC. It is expected that Texaco's gasification technology will be used to gasify the lignite to product a syngas consisting of hydrogen and carbon monoxide. The syngas will in turn be used to produce electricity and feed the Rentech-designed Fischer-Tropsch reactor.
Hillcrest indicated in a press release issued June 11, 1999 that total capital costs for the Esperance Power Project are expected to be around $500 million. These costs will be borne by the joint venture group.
"During the past several years, Rentech has been extremely active in pursuing a number of initiatives to further commercialize its technology. We are delighted that some of these initiatives have now progressed to the point where we can make them public," stated Dennis L. Yakobson, president and CEO of Rentech. Yakobson continued, "Our ongoing efforts reflect the tremendous flexibility of Rentech's Fischer-Tropsch technology and the opportunity it affords Rentech to participate in projects around the world that will produce very clean fuels and products from coal, industrial off-gases, refinery bottoms, and natural gas as Rentech seeks to evolve into a premiere Fischer-Tropsch technology licensing company."
Certain portions of this press release may contain "forward looking" statements as defined by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements herein. For more information concerning factors that could cause such a difference, see the Company's annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. Although Rentech believes its statements to be reasonable, investors are cautioned that such forward looking statements involve risk and uncertainties. The Company undertakes no obligation to publicly release the result of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
For more information, please contact: Mark Koenig, Director of Investor Relations of Rentech, Inc., 303-298-8008, or Email at firstname.lastname@example.org. SOURCE Rentech, Inc.
Updated: October 1999