Rentech's Future Turns a Lovely Shade of Green

Rentech has also partnered with Peabody Energy (BTU Quote), a major domestic producer of coal. The two companies are running feasibility studies on Rentech's technology and hope to build two CTL plants close to Peabody coal reserves. Peabody will likely co-own some facilities with Rentech and will also provide the coal feedstock for Rentech's CTL operations.

Longer term, Rentech's strategy is to use various forms of biomass along with coal and natural gas as feedstock for liquid fuel production. It already has a small biomass-testing facility in place in Colorado. Liquid fuels made from coal and organic blends can have emissions footprints that are 20% below that of traditional petroleum diesel, says Dawoodjee. The company's ultimate goal is to construct small fuel-producing plants wherever viable sources of feedstock can be found.

While Rentech plans to own some of the plants that use its technology, it would also like to license the technology out on a selected basis.

So far, Rentech has relied on equity markets to raise capital. It hopes that it can soon access debt markets as it proves its technology to a wider audience. According to Dawoodjee, the company has already been offered sweetened government offers to back large construction loans for new facilities.

After operating for more than 25 years as an R&D firm, its latest scramble for market-scale projects has some watchdogs concerned that Rentech may be biting off more than it can chew. However, Dawoodjee says that unlike many other companies that have chased CTL technology, Rentech has survived wild market gyrations and knows how to endure through hard times.

"With oil prices where they are today, the market is ready for our technology, and we are ready to give our technology to the market," she says.