ClearFuels Signs Cooperative Agreement for Remaining $19.7 Million of $23 Million DOE Bio-Refinery Grant 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 the remaining $19.7 million of a $23 million grant award to complete construction of a ClearFuels demonstration scale gasifier that will supply syngas from biomass and integrate it with Rentech's Product Demonstration Unit at the Rentech Energy Technology Center in Colorado.

The award was granted upon successful completion of Budget Period 1 tasks initiated in April of this year. The DOE recently completed planning, technical and budget reviews of the project and subsequently approved the remainder of activities required for the integration and operation of the biomass to renewable diesel and jet fuels demonstration.

"The authorization of the remaining $19.7 million of the grant funds is a significant accomplishment. We are very pleased to be on track with the project timeline and budget. The project has had successful independent engineering and business reviews, ARRA reporting, and NEPA reviews by the DOE," said Eric Darmstaedter, CEO of ClearFuels. He added, "We especially value our strategic partnership with Rentech and their project management leadership of this joint technology demonstration. The success of this project will be the final step toward commercial development."

The grant will facilitate the integration of ClearFuels' flexible and versatile biomass to synthesis gas technology with Rentech's Fisher-Tropsch Process, with the goal of demonstrating efficient, cost-effective production of certified, drop-in, renewable diesel and jet fuels 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.

D. Hunt Ramsbottom, President and CEO of Rentech, commented, “We are pleased that the DOE continues to recognize the significance of a successful demonstration of our joint technologies and the potential to deploy them at commercial-scale renewable energy projects for the production of low-carbon renewable fuels and the creation of green jobs.�??

Mr. Darmstaedter went on to say, "The Rentech Energy Technology Center is an impressive facility that uses natural gas to produce synthetic diesel proven by Audi in its recent 1000-mile drive as a successful drop-in fuel, as well as synthetic jet fuel certified for commercial aviation and proven by United Airlines. We believe the integration of ClearFuels and Rentech's technologies, partially funded by the DOE, is an example of a successful biofuels partnership on the right track to commercially viable renewable drop-in fuels from biomass at competitive prices. ClearFuel's commercial plans in Hawaii, in concert with the DOE- Hawaii Clean Energy Initiative, and on the mainland U.S., have the potential to help with energy security, rural economic development, greenhouse gas reductions, and the creation of American jobs."

RenDiesel® fuel produced using Rentech's technology is biodegradable, exceeds all global sulfur requirements and has virtually no aromatics. When compared to traditional petroleum-derived low sulfur diesel, tailpipe emissions from RenDiesel fuel generate lower amounts of hydrocarbons, carbon monoxide, particulate matter, nitrogen oxides (NOX), sulfur oxides (SOX) and carbon dioxide. Also, when compared to traditional diesel fuels, RenDiesel fuel has higher hydrogen content, heating value and cetane index, making it very energy-efficient. RenDiesel fuel contains approximately 60% more energy per gallon than ethanol and diesel engines typically achieve 20-40% more miles per gallon than gasoline engines. RenDiesel fuel also produces fewer volatile organic compound (VOC) emissions than ethanol or traditional diesel.

RenJet® fuel produced using Rentech's technology is the only alternative fuel type certified for commercial aviation. Rentech's certified jet fuel has all the positive attributes of its synthetic diesel fuel and also reduces aircraft particulate matter emissions by 96% in engine idle, a major source of ground level pollution. Also, the lower density of RenJet fuel could enable aircraft to have lower take-off weight, which conserves fuel and lowers operating costs. Alternatively, the lower density of RenJet fuel could allow aircraft to carry heavier payloads with the same volume of fuel when compared to traditional jet fuel.

Commercial scale ClearFuels-Rentech bio-refineries are anticipated to be designed with the flexibility to produce both renewable synthetic diesel and jet fuels from multiple clean biomass feedstocks including bark, sawdust, woodchips, sugarcane bagasse, cane trash, corn stover and mixtures of clean biomass.

In the near term, ClearFuels is focusing on commercial production of renewable jet and diesel fuels with Rentech, which has a 25% strategic investment in ClearFuels. In the longer term, ClearFuels is working on technology integration with companies ranging from Rentech on the thermo-chemical pathway, to Amyris on the biological pathway.

"Nearly all advanced biofuels processes require some form of a renewable energy driver, whether that is steam, power, heat, hydrogen, or syngas. ClearFuels' hydrothermal reformation technology can supply all of these process drivers from biomass," Mr. Darmstaedter stated. He also indicated that ClearFuels is exploring renewable biomass to power opportunities and is in discussions with other companies whose technologies integrate well with the Companys.

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-location of 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.