Rentech Nitrogen Partners, L.P. (NYSE:RNF) today announced that it has completed the diesel exhaust fluid (DEF) system portion of its previously announced urea/DEF expansion project at its nitrogen fertilizer plant in East Dubuque, IL. The DEF system was completed ahead of schedule, and it included the installation of mixing, storage and load-out equipment for DEF production. The second phase of the project, to increase urea production capacity by 13% or 17,500 tons annually that will be used for the production of DEF, is on schedule to be completed by the end of this year. The total capital budget for the urea/DEF project remains approximately $6 million and is fully funded. DEF is a high-purity urea solution composed of de-ionized water and prime urea. As part of the Clean Air Act, the U.S. Environmental Protection Agency has mandated that all on-road diesel vehicles (class I through class 8) manufactured on or after January 1, 2010 employ an emissions-reducing engine technology which specifically targets hazardous nitrous oxide (NOx) emissions. The market leading solution for heavy-duty vehicles to comply with these stricter emissions standards is selective catalytic reduction (SCR), which involves injecting DEF into the exhaust of vehicles and achieves NOx reductions in excess of 90 percent. The U.S. market for DEF is projected to grow from 50 million gallons in 2010 to 1.3 billion gallons in 2019. The completion of this phase of the expansion allows Rentech Nitrogen to expand its product offerings to include DEF, an industrial high-purity urea solution, which sells at a premium to urea used for agricultural purposes. Yara North America Inc., a leader in the DEF market, has entered into a long-term agreement with Rentech Nitrogen for the exclusive rights to purchase and distribute the quality DEF produced at Rentech Nitrogen’s facility under Yara’s Air1® brand. Completion of the DEF phase has enabled Rentech Nitrogen to convert a portion of its existing prime urea stream into high-quality DEF, which is being sold to Yara. Once the urea expansion at Rentech Nitrogen’s plant is completed later this year, the additional 17,500 annual tons of prime urea production will also be used to produce DEF for sale to Yara.
John Diesch, President of Rentech Nitrogen, said, “We’re pleased that the DEF portion of the urea/DEF expansion has been completed ahead of schedule, allowing us to sell this premium product sooner than anticipated.” Mr. Diesch continued, “The expansion has allowed us to enter into a relatively new and growing market, which we can access through Yara, our distribution partner.”“We look forward to a successful long-term partnership with Rentech Nitrogen,” adds Chad Dombroski, Director of Air1 for Yara. “Our customers depend upon the reliable delivery of quality DEF through our DeliveryOne network, the nation’s most robust coast-to-coast DEF delivery network. This partnership reflects our on-going commitment to expanding our global supply chain capabilities to ensure Air1 DEF is available when and where our customers need it.” About Rentech Nitrogen, L.P. Rentech Nitrogen ( www.rentechnitrogen.com) was formed by Rentech, Inc. to own, operate and expand its nitrogen fertilizer business. Rentech Nitrogen’s assets consist of a nitrogen fertilizer facility located in East Dubuque, Illinois, owned by Rentech Nitrogen, LLC, its operating subsidiary. The facility is located in the Mid Corn Belt in the northwestern corner of Illinois, adjacent to the Iowa and Wisconsin state lines, and produces primarily anhydrous ammonia and urea ammonium nitrate solution, using natural gas as its primary feedstock, for sale to customers in the Mid Corn Belt. Forward Looking Statements This press release contains forward-looking statements such as: the timing, cost and projected production of the urea/DEF expansion project; and the projected growth of the U.S. DEF market. These statements are based on management’s current expectations and actual results may differ materially as a result of various risks and uncertainties. Other factors that could cause actual results to differ from those reflected in the forward-looking statements are set forth in Rentech Nitrogen’s prior press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech Nitrogen’s website at www.rentechnitrogen.com. The forward-looking statements in this press release are made as of the date of this press release and Rentech Nitrogen does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.