ClearFuels Signs Cooperative Agreement for $7.7 Million First Round of DOE Biorefinery Funding

AIEA, Hawaii--ClearFuels Technology, Inc. (ClearFuels), headquartered in Aiea, Hawaii, announced today that it has signed a Cooperative Agreement with the U.S. Department of Energy (DOE) to receive its first $7.7 million of a $22.6 million grant award to construct its biomass gasifier at Rentech's Energy Technology Center.

The $7.7 million award reflects the Company's satisfaction of all conditions of its grant for Budget Period 1 under the DOE's Integrated Bio-refinery Grant Program. Budget Period 2 is expected to start in the third quarter of this year.

The grant will facilitate the integration of ClearFuels' synthesis gas technology with Rentech's Fisher-Tropsch process, with the goal of demonstrating efficient, flexible, low-cost production of certified, drop-in, renewable diesel and jet fuel from clean biomass at Rentech's Product Demonstration Unit in Commerce City, Colorado. This joint demonstration of an integrated bio-refinery is anticipated to be completed in late 2011 and will lead to the final design basis for commercial facilities that are expected to use the combined technologies. ClearFuels has begun development of multiple commercial-scale biomass-to-energy projects in the southeastern United States and Hawaii.

When asked about Hawaii, ClearFuels CEO, Eric Darmstaedter, stated, “We are especially anxious to build commercial facilities in our home state of Hawaii. The successful demonstration of our technology processing biomass feedstocks such as bagasse, wood waste and mixtures thereof, will enable our commercial development here in Hawaii."

In a letter of support for the ClearFuels-Rentech demonstration project last November, Senator Inouye wrote, "Hawaii is uniquely positioned to provide a variety of feedstocks for the production of bio-based fuels to replace imported oil for both transportation fuels and energy production…Not only will ClearFuels' success help improve our renewable energy portfolio, but it will provide new jobs and help to diversify our state's economy."

Mr. Darmstaedter added, "We believe we have built strong partners and investor relationships in Hawaii and continue to develop opportunities here. ClearFuels is partnering with landowners, crop producers and local businesses to help establish a new, vertically integrated industry that will help diversify and grow Hawaii's economy for a sustainable energy future."

The ClearFuels-Rentech partnership and the DOE grant agreement bring validation to the ClearFuels-Rentech process, which is now closer to commercial realization. ClearFuels has spent many years developing the flexible technology to use local sources of non-food biomass to produce diesel, jet fuel and other biofuels that will reduce dependence on imported petroleum. ClearFuels has also completed preliminary designs using its reformation technology for production of renewable power.

ClearFuels is focusing on the near term commercial production of renewable jet and diesel fuels with Rentech, which has a 25% strategic investment in ClearFuels. ClearFuels is also exploring renewable power opportunities and is in discussions with other biofuels companies whose technologies also integrate well with its own.

About ClearFuels Technology Inc.

ClearFuels (www.clearfuels.com) and its partners are developing advanced sustainable biorefineries that convert multiple mixed cellulosic biomass feedstocks into sustainable, high-value energy products including renewable Fischer-Tropsch (FT) diesel and jet fuel, ethanol, hydrogen and power at industry-leading yields. The ClearFuels proprietary thermochemical conversion process is based on its advanced High Efficiency Hydrothermal Reformation (HEHTR) technology for biomass-to-syngas conversion (BTG). This modular flexible BTG technology platform, in combination with various synthetic gas-to-liquid (GTL) technologies and co-locating its biorefineries at sugar mills, and at wood processing and other biomass processing facilities, provides a reduced risk, lower overall cost commercial strategy in line with ClearFuels vision for production of clean clear biofuels.

About Rentech, Inc.

Rentech, Inc. (www.rentechinc.com), incorporated in 1981, provides clean energy solutions. The Company's Rentech-SilvaGas biomass gasification process can convert multiple biomass feedstocks into synthesis gas (syngas) for production of renewable fuels and power. Combining the gasification process with Rentech’s unique application of proven syngas conditioning and clean-up technology and the patented Rentech Process based on Fischer-Tropsch chemistry, Rentech offers an integrated solution for production of synthetic fuels from biomass. The Rentech Process can also convert syngas from fossil resources into ultra-clean synthetic jet and diesel fuels, specialty waxes and chemicals. Final product upgrading is provided under an alliance with UOP, a Honeywell company. Rentech develops projects and licenses these technologies for application in synthetic fuels and power facilities worldwide. Rentech Energy Midwest Corporation, the Company's wholly-owned subsidiary, manufactures and sells nitrogen fertilizer products including ammonia, urea ammonia nitrate, urea granule, and urea solution in the corn-belt region of the central United States. Rentech has been recognized by Biofuels Digest as one of the 50 Hottest Companies in Bio-energy and has been named as one of the Biofuels Digest Companies of the Year for its recent innovations and achievements, particularly in aviation biofuels.