ClearFuels Announces Development of Co-Located Commercial Scale Biorefinery Facility for Renewable Synthetic Fuel Production in Tennessee

Hughes Hardwood International, Inc. to Supply Woody Feedstock and Site Access with Option to Purchase Steam and Power

AIEA, Hawaii--(EON: Enhanced Online News)--ClearFuels Technology Inc. (“ClearFuels”) and Hughes Hardwood International, Inc. (Hughes Hardwood) have executed a Memorandum of Understanding (“MOU”) regarding the development of a commercial scale biorefinery facility for the production of renewable jet or diesel fuel.

“Alternative fuels are a pillar of Tennessee’s green portfolio, and today’s investment in Collinwood is an affirmation of our state’s important role in the continued growth of this emerging sector.”

The renewable energy facility will be co-located with Hughes Hardwood’s wood component products manufacturing facility in Collinwood, Tennessee. Under the MOU, Hughes Hardwood will supply 1000 dry ton per day of wood product for conversion into approximately 16 million gallons of synthetic jet or diesel fuel and 4 million gallons of naphtha per year, as well as approximately 8 megawatts of excess renewable power. The project is currently expected to be operational by early 2014.

BNP Paribas will act as financial advisor in connection with assisting and supporting ClearFuels in securing financing arrangements for senior secured debt for the project.

According to ClearFuels, this is the first public confirmation of the Company’s plans for developing a number of commercial projects using the integrated ClearFuels-Rentech thermo chemical technology for biomass to renewable jet or diesel fuel production.

The final design basis for the Collinwood commercial facility and other commercial projects will come from the joint demonstration of ClearFuels’ biomass gasifier integrated with Rentech’s synthetic fuels technology at a project at Rentech’s Energy Technology Center in Commerce City, Colorado. This joint demonstration is expected to be completed in late 2011. This demonstration project is supported by a $22.6 million conditional grant from the U.S. Department of Energy. ClearFuels expects to begin receiving funds from this grant by the end of March.

The ClearFuels gasification and the Rentech synthetic fuels conversion technologies have been developed, tested and improved independently over the past 15 years. The unique integration of these technologies represents a breakthrough in the design of versatile biofuels production plants, promising a definitive advance in thermo chemical biofuels conversion efficiency and flexibility, making ClearFuels and its partners leaders in producing multiple liquid fuels from the same biorefinery.

Governor Bredesen said, “Tennessee’s nationally recognized business climate and our demonstrated commitment to the clean energy industry create fertile ground for partnerships like this one between ClearFuels and Hughes Hardwood,” He continued, “Alternative fuels are a pillar of Tennessee’s green portfolio, and today’s investment in Collinwood is an affirmation of our state’s important role in the continued growth of this emerging sector.”

Warren Davis, VP of Commercial Development for ClearFuels, commented, “Our agreement with Hughes Hardwood is a vitally important step in our commercial development process. All projects start with a site, a technology and dedicated teamwork from both community and development organizations. There are no shortcuts to developing successful energy infrastructure projects. We have a terrific and experienced team that understands what is required to get to commercial operation, and we are excited to have Hughes Hardwood as our co-location partner.”

Bill Hughes, President of Hughes Hardwood, noted, “We are very pleased to play an integral part in the successful implementation of a biorefinery here in Wayne County which, when fully operational, should benefit the timber industry in a multi-county area.”

Parkes Hughes, SVP of Operations at Hughes, added, “Finding new industries for rural counties is difficult at best, so I would like to give special thanks to the local and state officials, especially Jerry Merriman, Ed Harlan, Joe Claxton, Patrick Hite, Jason Rich, and Tom Cauley, for their tireless efforts in helping to make ClearFuels’ decision to locate in Collinwood an easy one.”

Mike Yeager, Land Manager at Hughes Hardwood, observed, “The concept of biomass harvesting will revolutionize the logging industry in the South. Landowners who prefer biomass contractors over a conventional harvest will see both economic advantages and a more attractive post-harvest site. Every land owner Hughes Hardwood has assisted has had an issue with disposing of the remaining residual fiber. Now I can offer a profitable solution to that problem.”

“It’s taken a long time to get to this point,” said Wayne Barrier, a member of the ClearFuels Board of Directors and the former manager of the Tennessee Valley Authority biofuels program. “We looked at a lot of technologies and have done our homework with ClearFuels and Rentech. Their integrated technology is a great fit for the Tennessee project, and we are excited to get started on commercial development.”

According to ClearFuels, this commercial facility is targeted to break ground in late 2011 following completion of its joint demonstration project with Rentech of the companies’ integrated technologies for the production of renewable fuels. Synthetic diesel fuel produced from the Rentech Process meets ASTM D-975 specifications. Synthetic jet fuel produced using the company’s technology is certified by the U.S. Air Force and for commercial aviation use. Rentech has a 25% strategic ownership interest in ClearFuels.

ClearFuels has begun project development of multiple commercial scale biomass-to-energy facilities in the southeastern United States, Hawaii and internationally. These projects are expected to use an integrated ClearFuels-Rentech design and be co-located at sugar mills, wood mills and other biomass processing facilities. According to ClearFuels, projects will be based on non-recourse project finance through special purpose entities (LLCs), similar to the proven independent power projects business model. ClearFuels’ management has experience with over $10 billion of energy infrastructure financing based on this model and has with engaged BNP Paribas as debt advisor for its leadership experience in project finance.

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 thermo chemical 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 at biorefineries at sugar mills, 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 Hughes Hardwood International, Inc.: For nearly 70 years, Hughes Hardwood has been a leader in the lumber industry in the southeast. The company owns and manages timber plantations across Tennessee and also has operating facilities to purchase, dry and sell lumber as well as provide custom forestry and land management services. . For more information call our office at 931-724-6258

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 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 and acid gas removal technologies are 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. Please contact Julie Dawoodjee, Rentech’s Vice President of Investor Relations and Communications, at 310-571-9800 or [e-mail] for more information.