Rentech Secures Supply Agreement for Biodiesel with 8 Airlines

Rentech, based in Los Angeles, California, signed a supply agreement today to provide up to  1.5 million gallons of renewable synthetic diesel fuel each year for the use of ground transport by eight major airlines. The supply contract will see Rentech delivering fuel beginning in 2012.

Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Southwest Airlines, United Airlines, UPS Airlines and US Airways have all signed fuel supply contracts with the company. Rentech focuses on the development of synthetic fuels and fertilizers.

To help meet the production needs by 2012, Rentech has planned a new facility to be built in California. The facility is expected to be in operation by fall 2009. Rentech uses a process designed by SilvaGas which uses biomass to produce diesel. The product has become popular as it is compatible with existing vehicles and pipes used by major airlines.

The agreement made today will supply fuel for ground vehicles only, but the company stated that their RenDiesel fuel is approved for commercial airline use as well. 

Rentech is also heavily involved in renewable electricity as well. The company has plans to build a $4.5 billion facility in Mississippi that will yield 560 MW of electricity generated using their RenDiesel biofuel. The plant will consume 28,000 barrels of the company’s fuel a day. The Mississippi project is expected to take a couple years to be completed because it is such a large scale endeavor.

Other airlines are also looking at alternative ways of fueling vehicles, on the ground and in the air, as gas prices continue to soar. Virgin Atlantic Airways, Air New Zealand, Continental Airlines and Japan Airlines have all previously demonstrated biodiesel’s effectiveness in aircraft as a jet fuel.