Rentech signs offtake agreements with eight airlines for renewable diesel at LAX

In California, Rentech announced today that it has signed an multi-year agreement to supply eight airlines with up to 1.5 million gallons per year of renewable synthetic diesel for ground service equipment operations at Los Angeles International Airport (LAX) commencing in late 2012.

The initial purchasers under the agreement with Aircraft Service International Group (ASIG), the entity that provides fueling services to many airlines that operate at LAX, are Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Southwest Airlines, United Airlines, UPS Airlines and US Airways.

Additional airline purchasers of RenDiesel® can be added under the agreement with ASIG.  The offtake agreement is the first for the Rentech plant in Rialto, scheduled for completion in 2012. The Rialto project is expected to produce 9 Mgy of renewable diesel  and 35 MW of renewable electricity, primarily from urban woody green waste, such as yard clippings.

D. Hunt Ramsbottom, President and Chief Executive Officer of Rentech said, “This commercial purchase contract among Rentech, ASIG and the airlines validates the growing demand for synthetic fuels produced by the Rentech Process. We expect this agreement to serve as a model for future supply relationships at other airports and for other fuels, including Rentech’s synthetic jet fuel, which was recently approved for commercial airline use.”

Rentech’s biomass gasification process can convert multiple biomass feedstocks into synthesis gas (syngas) for production of renewable fuels and power.  Final product upgrading is provided under an alliance with UOP.

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