Posted July 1, 2009, at 4:50 p.m. CST

Rentech Inc. announced it has completed investment agreements with two biomass gasification technology companies. The announcement came on the heels of the news that Rentech planned to build a plant in Rialto, Calif., for the production of synthetic fuels such as renewable diesel and electric power from waste biomass feedstocks (see http://www.biomassmagazine.com/article.jsp?article_id=2802).

In May, Rentech said it had secured a long-term licensing agreement with SilvaGas Corp. for implementation of its biomass gasification technology at Rentech's Rialto project, as well as a commitment for additional licenses for other potential waste-to-energy projects. During a conference call June 30, Rentech President and CEO Hunt Ramsbottom said the company had now signed a definitive agreement to acquire 100 percent of SilvaGas Corp.

"The announcements were the culmination of nearly two years of extensive reviews of dozens of gasification companies and technologies, and we identified a number of commercially viable gasifiers with varying biomass feedstock processing and syngas production capabilities," Ramsbottom said. "[SilvaGas] has one of only a handful of biomass gasifiers ready for commercial deployment, having previously operated at commercial scale. We liked what we saw as we progressed through our licensing and due diligence and concluded that we should own that technology."

As the company develops multiple biomass projects, the acquisition will allow Rentech to save money on licensing fees, Ramsbottom said. Rentech also plans to offer licensing opportunities that combine the Rentech and Silvagas technologies for synthetic fuel/power production from biomass, renewable electric power facilities, and the manufacture of other chemicals such as ammonia, according to Ramsbottom.

Rentech has also executed agreements with ClearFuels Technology Inc., a bioenergy gasification and project development company, in a deal which includes an acquisition of 25 percent ownership. "ClearFuels' gasifier compliments Silvasgas' technology," Ramsbottom said. "It's optimized to efficiently convert finely ground biomass feedstocks such as wood waste and sugarcane bagasse into syngas. ClearFuels has a portfolio of developing projects underway, and has also signed an agreement for a license for our Rentech process, for those projects. We'll work with ClearFuels to place a biomass gasifier at our product demonstration unit in Colorado."

ClearFuels plans to build a 20-ton-per-day biomass gasifier designed to produce syngas from bagasse and virgin wood waste feedstocks at Rentech's demonstration facility, according to Ramsbottom. He said syngas generated from ClearFuels' gasifier will replace the use of natural gas at the facility. Installation, he added, is expected in the second half of 2010.

The agreement with ClearFuels also provides the company with a license to use the Rentech process for up to 12 U.S.-based projects. ClearFuels has begun to develop multiple commercial-scale projects in southeast U.S., Hawaii and internationally, Ramsbottom said. "These projects are expected to use an integrated Clearfuels/Rentech design and will be co-located at sugar mills and wood processing facilities," he said.

Ramsbottom also provided an update on the company's Rialto project, saying the company expects to complete a feasibility study this fall, which will provide data necessary to complete permit applications and feasibility cost estimates. "We have made our final selection for a national firm that will act as our consultant and contractor for permitting processes, and are finalizing the selection of an engineering and construction firm for the project, which we expect to complete next year," he said. The company is engaged in discussions with commercial green waste haulers for project's feedstock, he added.