Rentech just announced that is has signed a non-binding memorandum of understanding with 13 different air carriers. Although the MOU is non-binding, its is expected to serve as the basis of a supply contract for the synthetic jet fuel that Rentech will produce at the Natchez Project, the fuel and power facility that Rentech plans to build in Mississippi.
If all goes well, the 13 airlines (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) are expected to buy the entire 250 million gallon output of the plant. Rentech’s synthetic jet fuel is made from “fossil feedstocks”- coal and waste products from refineries. Biomass may become part of the blend in the future.
In a company press release, D. Hunt Ramsbottom, President and Chief Executive Officer of Rentech, commented on the MOU:
“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.” Mr. Ramsbottom continued, “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. Rentech is leading America toward a lower carbon future with the use of domestic technology and resources to fuel our nation’s transportation needs.”
that is great news for RTK! kind of lost in the news of the accounting errors and earnings miss today