Over one month ago, I posted here that Rentech (RTK) was approaching final approval for use of its synthetic fuel in commercial aviation.  It seemed at the time that the news would be enough to send the penny stock soaring, but it appears traders were waiting for final approval.  Today, the stock was launched into orbit, doubling in price right at the open, but gave back much of the gains and closed up less than 50%.  Not a bad day.

I missed the news, but last night the company issued a press release announcing the approval.  ASTM International’s committee unanimously approved modifying the specifications for commercial aviation jet fuel to allow a 50/50 blend of synthetic Fischer-Tropsch jet fuel.  Rentech’s RenJet fuel now qualifies as an approved synthetic fuel under the new guidelines.

The CEO said, “ASTM’s approval of synthetic jet fuel for use in commercial aviation marks the achievement of a significant milestone for Rentech, the commercial aviation industry and the country.  Rentech is one of the few companies that has the technology to produce and supply these fuels to the commercial aviation market and the U.S. Air Force, which has already certified the use of synthetic fuels in most of its aircraft.”

With the ASTM specifications, fuel derived using the Fischer-Tropsch process, including RenJet(R) produced from renewable or fossil feedstocks, is the first and currently only alternative jet fuel certified for use by the FAA. Rentech currently produces jet fuel at its Product Demonstration Unit that, when blended with petroleum-derived fuel, meets the ASTM International specifications. RenJet(R) is biodegradable, clean burning and virtually free of particulates, sulfur and aromatics.

D. Hunt Ramsbottom, President and Chief Executive Officer of Rentech, stated, “ASTM’s approval of synthetic jet fuel for use in commercial aviation marks the achievement of a significant milestone for Rentech, the commercial aviation industry and the country.” Mr. Ramsbottom continued, “Rentech is one of the few companies that has the technology to produce and supply these fuels to the commercial aviation market and the U.S. Air Force, which has already certified the use of synthetic fuels in most of its aircraft.”