R&D expenses incurred in the alternative energy segment during the nine months ended September 30, 2012 were $14.7 million, down from $24.6 million for the comparable period in the prior year. The decrease in R&D expenses resulted primarily from a decrease in costs related to the Rentech-ClearFuels gasifier of approximately $18.0 million, a reduction in sales and use taxes related to the PDU of approximately $2.0 million, and plant modifications of approximately $0.7 million, which was partially offset by lower reimbursements from the DOE of costs related to the gasifier of approximately $9.4 million.Rentech Nitrogen’s natural gas hedging strategy resulted in average natural gas costs of $3.63 per MMBtu for the first nine months of 2012, compared to $4.78 per MMBtu for the prior-year period. Lower natural gas costs combined with strong product prices contributed to gross margins of 61% in the current period, up significantly from 44% for the same period last year.
Rentech Reports Results For Third Quarter 2012
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