|Traded as||NYSE: RTK
|Industry||Wood Fibre Processing and Fertilizers|
|Headquarters||Los Angeles, California, United States|
|Key people||D. Hunt Ramsbottom
(CEO, President, Director)
Halbert S. Washburn
(Chairman of the board)
Dan J. Cohrs
(CFO, Executive Vice President)
|Products||wood chips, wood pellets and nitrogen fertilizer|
|Divisions||Fulghum Fibres, a Rentech Company|
|Subsidiaries||Rentech Nitrogen Partners, L.P.|
Rentech (NYSE MKT: RTK, NYSE: RNF) is a United States company that owns and operates wood fibre processing and nitrogen fertilizer manufacturing businesses. The wood fibre processing business consists of the provision of wood chipping services and the manufacture and sale of wood chips, through a wholly owned subsidiary, Fulghum Fibres, Inc. The wood fibre processing business also includes the development of wood pellet production facilities. Rentech’s nitrogen fertilizer business consists of the manufacture and sale of nitrogen fertilizer through its publicly traded subsidiary, Rentech Nitrogen Partners, L.P. In addition, Rentech owns the intellectual property (including patents, pilot and demonstration data, and engineering designs) for a number of clean energy technologies designed to produce certified synthetic fuels and renewable power when integrated with third-party technologies.
Wood chips and wood pellets
In May 2013, Rentech acquired Georgia-based Fulghum Fibres, Inc., a contract wood chipping services company, and two decommissioned fibre mills in Ontario, Canada for conversion to the production of wood pellets.
Fulghum Fibres, which is formally known as Fulghum Fibres, a Rentech Company, has approximately 420 employees and is a leader in contract fibre processing services. Established in 1989, Fulghum Fibres processes approximately 15 million metric tons of wood and bark annually into wood chips and residual fuels. It owns 32 wood chipping mills, 26 in the U.S. and six in South America, where Fulghum Fibres provides chipping services and exports wood chips to customers who are primarily in Japan. Fulghum Fibres operates principally under long-term contracts and services a portfolio of industry-leading customers, such as Georgia Pacific, International Paper and Weyerhaeuser.
Also in May 2013, Rentech announced that it had secured two ten-year take-or-pay contracts for the sale of industrial wood pellets totaling over four million metric tons of production over the life of the contracts.
Drax, the largest power producing station in the United Kingdom and Western Europe, has signed a ten-year off-take contract for the delivery of approximately 400,000 metric tons of pellets annually to be supplied by Rentech’s Wawa and Atikokan facilities (see below). Under the terms of the contract, prices are indexed for inflation, fuel and fibre supply costs. The contract establishes a strategic relationship with Drax, which plans to invest approximately U.S. $1 billion through 2017 to transform its coal-fired power station in the U.K. into an electricity generator fuelled predominantly by sustainable biomass. With the conversion of three of six generating units from coal to biomass, Drax is expected to demand approximately seven million metric tons of pellets per year by 2017.
Ontario Power Generation (OPG), which is responsible for about 60% of electricity generated in Ontario, Canada, is phasing out the use of coal to produce electricity at its power plants. OPG has signed a ten-year off-take contract for the Atikokan project (see below) for the supply of 45,000 metric tons of pellets annually FOB plant gate. The OPG contract is the first long-term pellet supply agreement for a domestic utility in Canada. OPG has the option to expand the contract to 90,000 metric tons annually. Rentech will acquire the OPG contract as part of the acquisition of the Atikokan project.
Rentech expects to convert two decommissioned fibre mills in Ontario, Canada with significant existing re-usable infrastructure into pellet mills to fulfill deliveries required under the Drax and OPG contracts.
Rentech announced it had exclusive rights to acquire an oriented strand board processing mill from Weyerhaeuser in Wawa, Ontario, which Rentech expects to convert for production of approximately 360,000 metric tons of pellets annually. The facility is expected to consume approximately 710,000 metric tons of certified sustainably managed Crown fibre annually.
In addition, Rentech announced it had entered into an agreement to acquire a particle board processing mill from Atikokan Renewable Fuels in Atikokan, Ontario, which is expected to be converted for production of approximately 125,000 metric tons of pellets annually. The facility is expected to consume approximately 250,000 metric tons of Crown fibre annually. Rentech has formed a partnership with Great North Bio Energy to continue to work with First Nations in the development and operation of the Atikokan project.
As part of the May 2013 acquisition of Fulghum Fibres, Rentech entered into a joint venture with Graanul Invest, a European company which is one of the largest pellet producers in the world. Graanul has designed, built and operates six pellet facilities in Europe, which produce 830,000 tons of pellets annually. The joint venture is an equal equity partnership between Rentech and Graanul to develop and build wood pellet facilities in the U.S. and Canada. Graanul will provide engineering, procurement and production services to projects developed by the joint venture. Graanul will also provide marketing services for excess pellets produced by the joint venture and allow the Rentech to acquire pellets from Graanul’s European plants as required.
Rentech Nitrogen Partners
In April 2006, Rentech acquired an ammonia nitrogen fertilizer facility located in East Dubuque, Illinois. The facility produces approximately 830 tons per day of natural gas-fed ammonia nitrogen fertilizer products that are sold to the surrounding agricultural community. In 2011, Rentech commenced construction of an ammonia production and storage capacity expansion project, which is expected to be completed by the end of 2013. The project is designed to increase ammonia production capacity to 1,020 tons per day and add ammonia storage capacity of approximately 20,000 tons.
In November 2012, Rentech acquired an additional nitrogen fertilizer facility in Pasadena, Texas. The facility is located on the Houston Ship Channel with two deep-water docks and access to the Mississippi waterway system and key international waterways. The facility is also connected to key domestic railways which permit efficient, cost effective distribution west of the Mississippi River. The Pasadena Facility can produce up to 1,750 tons of ammonium sulfate per day and up of 1,750 tons of sulfuric acid per day, a majority of which is upgraded into ammonium sulfate and other products. The facility has on-site storage capacity of 60,000 tons of ammonium sulfate and 27,000 tons of sulfuric acid. Rentech commenced a project to increase ammonium sulfate production capacity by 115,000 tons annually. Products from the Pasadena Facility are sold primarily through distributors to customers in the United States and Brazil, where they are applied to many types of crops including soybeans, potatoes, cotton, canola, alfalfa, corn and wheat.
In November 2011, Rentech formed Rentech Nitrogen Partners, L.P., to own, operate and expand its nitrogen fertilizer business as a publicly traded Master Limited Partnership. The common units are listed on the New York Stock Exchange under the ticker symbol "RNF." Following the IPO, Rentech owns approximately 60% of Rentech Nitrogen Partners and 100% of the non-economic general partner interest in Rentech Nitrogen.
Rentech was initially formed to develop and commercialize certain alternative energy technologies. Rentech conducted significant research and project development activities related to those technologies. On February 28, 2013, Rentech announced plans to cease operations and reduce staffing at its research and development Product Demonstration Unit, or PDU, a demonstration-scale plant at the Rentech Energy Technology Center in Commerce City, Colorado. The Center had successfully produced diesel and jet fuel from wood chips and natural gas. However, management decided to eliminate all related research and development activities and use low-cost efforts to seek partners who would provide funding to deploy the technologies as it develops and grows its wood fibre processing and nitrogen fertilizer businesses.
Corporate offices are located in Los Angeles.