Rentech advances to due diligence in DOE loan guarantee process
In California, Rentech announced that the U.S. DOE Loan Guarantee Program Office (LGPO) has selected Rentech’s loan guarantee application for its proposed Rialto Renewable Energy Center for due diligence review. Rentech applied in February of 2010 for a loan guarantee for the Rialto Project as an advanced bio-refinery under the Section 1705 Title XVII Loan Guarantee Program.
The loan guarantee, if granted, would support the construction of Rentech’s commercial-scale California-based Rialto Project, which is being designed to produce approximately 9 million gallons per year of renewable fuels and 35 megawatts of renewable power from green waste. This invitation is not an assurance that the project will be offered a term sheet or a conditional commitment.
In the notification letter, the LGPO specified its expectation of a more conservative capital structure with substantially higher project equity requirements than those implied by the maximum leverage and loan tenor described in the Loan Guarantee Solicitation Announcement under which the application was submitted.
Rentech reports that they are also evaluating alternative sources of financing for the project that may be available in the event that any loan guarantee terms offered by the DOE are not attractive or that satisfactory commercial agreements are not completed in time to meet the deadlines.
Category: Fuels
