January 5, 2010

Rentech Signs MoU With 13 Air Carriers

By Staff Writer
Wednesday, 16 December 2009 12:02

Clean energy solutions provider Rentech has signed a memorandum of understanding with 13 domestic and international passenger and cargo carriers that is intended to serve as a framework for a future definitive supply agreement for certified jet fuel from Rentech's proposed synthetic fuels and power facility in Adams County, Mississippi (Natchez Project).

The non-binding MoU signed by Rentech and Air Canada, AirTran Airways, American Airlines, Atlas Air, Delta Air Lines, FedEx Express, JetBlue Airways, Lufthansa German Airlines, Mexicana Airlines, Polar Air Cargo, United Airlines, UPS Airlines and US Airways includes terms that are anticipated to serve as the basis of a possible definitive purchase agreement by these carriers for the Natchez Project's entire synthetic jet fuel production of approximately 250 million gallons per year.

Hunt Ramsbottom, president and CEO of Rentech, said: "This agreement is a significant step forward, representing nearly two years of negotiations between Rentech and our airline partners, establishing a framework for a large group of diverse carriers to negotiate a definitive fuel purchase agreement.

"We believe that successful relationships with our airline partners, suppliers and the government can advance what is expected to be the nation's first large-scale synthetic fuels facility for environmentally superior alternative sources of domestic energy and significant new jobs that will help our economy grow."

Glenn Tilton, board chairman of Air Transport Association of America and chairman, president and CEO of UAL, said: "Our intention as an airline industry is to continue to do our part by supporting the use of alternative fuels. We urge the US government and the investment community also to do their part to further support this critical energy opportunity."