Wednesday, August 06, 2008

Rentech opens synthetic fuel plant in Colorado

By Associated Press

COMMERCE CITY, Colo. (AP) _ Energy supplier Rentech Inc. says it has opened a synthetic diesel and jet fuel plant in Colorado which is now the only operating one of its kind in the country.

Los Angeles-based Rentech said Wednesday its demonstration plant in Commerce City, Colo. is designed to produce 420 gallons a day -- a mere trickle compared with the needs of airlines and trucking companies.

Company officials said their natural gas-based fuel will be sold to the Department of Defense and private companies for further testing. That testing could lead to certifying the fuel for commercial use in the airline industry.

Airlines have pressed for synthetic alternatives to expensive petroleum-based jet fuel, which jumped in price during the past few years and slashed profits from the industry.

Synthetic fuel has yet to be certified for U.S. airlines. However, a coalition of airline, manufacturing and airport associations wants standards for a 50 percent synthetic jet fuel approved by the end of the year.

Other U.S. companies have produced synthetic jet fuels in the past for research purposes, but they've since shut down, said National Energy Technology Laboratory spokesman Joe Culver.