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Airlines Sign First-of-Its-Kind Ongoing Supply Agreement for Renewable Synthetic Diesel Fuel

lreynolds
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The Air Transport Association of America, Inc. (ATA), the industry trade organization for the leading U.S. airlines, announced today that eight of its member airlines have signed an unprecedented agreement with Rentech, Inc. and Aircraft Service International Group (ASIG) to purchase up to 1.5 million gallons per year of renewable synthetic diesel fuel (RenDiesel) for use in ground service equipment at Los Angeles International Airport (LAX) beginning in late 2012, when Rentech's plant to produce the fuel is scheduled to go into service.

The initial airline purchasers of RenDiesel are Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Southwest Airlines, United Airlines, UPS Airlines and

US Airways, with the potential for adding other airline partners.

"We are proud to take part in this innovative, collective endeavor that, over time, will further reduce greenhouse gas emissions and improve local air quality through the use of greener fuels," said Glenn Tilton, ATA board chairman and UAL Corporation chairman, president and CEO. "This transaction promises to be the first of many such green fuel purchase agreements by the commercial aviation industry. It exemplifies the ongoing commitment of airlines and energy suppliers to diversify our fuel sources while contributing to a cleaner environment and adding new jobs to the economy."

The renewable RenDiesel will be produced at the commercial-scale facility that Rentech is developing in Rialto, Calif., primarily from urban woody green waste such as yard clippings. The fuel is expected to have a low carbon footprint and minimal particulate and other emissions while meeting or exceeding all applicable fuel standards. ASIG, which provides fueling services to many airlines that operate at LAX, will handle receipt and dispensing of the RenDiesel. Other discussions regarding potential alternative fuels agreements are continuing through the Commercial Aviation Alternative Fuels Initiative, of which ATA is a founding member.

"This commercial purchase contract among Rentech, ASIG and the airlines validates the growing demand for synthetic fuels produced by the Rentech Process," said D. Hunt Ramsbottom, Rentech president and chief executive officer. "The low-emissions profile and near-zero carbon footprint of our renewable RenDiesel will guarantee that the LAX ground service vehicles using this fuel will be among the cleanest and greenest of their kind."

Ramsbottom added, "We expect this agreement to serve as a model for future supply relationships at other airports and for other fuels, including Rentech's synthetic jet fuel, which was recently approved for commercial airline use."

"ASIG is thrilled to have been instrumental in reaching this landmark deal with the airlines and Rentech, reinforcing our strong commitment to our airline customers and environmental stewardship," said ASIG President Keith P. Ryan. "We are proud to be on the forefront of this innovative effort to advance aviation environmental progress."

"This collaborative effort is yet another environmentally friendly initiative that we and the airlines are pursuing at Los Angeles-area airports. It shows what we can accomplish by working together toward a common and necessary goal," said Gina Marie Lindsey, executive director of Los Angeles World Airports (LAWA)

About ATA

Founded in 1936, ATA is the nation's oldest and largest airline trade association, representing the nation's leading airlines. Since its inception, it has played a major role in all of the significant government decisions regarding aviation, including the creation of the Civil Aeronautics Board and the Federal Aviation Administration, the creation of the air traffic control system, airline deregulation and, more recently, with the aftermath of the 9/11 attack on America. ATA airline members and their affiliates transport more than 90 percent of all U.S. passenger and cargo traffic. Annually, commercial aviation helps drive $1.1 trillion in U.S. economic activity and more than 10 million U.S. jobs. On a daily basis, U.S. airlines operate nearly 30,000 flights in 77 countries, using more than 6,000 aircraft to carry an average of two million passengers and 50,000 tons of cargo. For additional industry information, visit www.airlines.org.

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 cleanup 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 ultraclean 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.

About ASIG

ASIG is a global provider of ground, fuel, cargo and airport facility services to airlines, airports, oil companies and industry partners. The company's 7,500 highly qualified aviation service professionals safely handle millions of flights and deliver 9 billion gallons of jet fuel annually. ASIG maintains and operates jet fuel facilities at 43 airports and provides aircraft refueling services at 54 airports worldwide. ASIG has won numerous industry awards for their fuel services line of business. The company offers flexible, comprehensive service solutions that deliver value and quality across a network of 67 airports in North America, Europe and Asia. ASIG is part of BBA Aviation, PLC, a world leader in the provision of Flight Support and Aftermarket Services and Systems for commercial aviation, business aviation, regional airline, military operators, including FBO services, fueling, ground handling, turbine engine repair and overhaul and aviation components, landing gear and hydraulic systems.

About LAWA

Los Angeles World Airports is the Los Angeles city department that owns and operates a system of three airports: Los Angeles International (LAX), LA/Ontario International (ONT) and Van Nuys (VNY). Each plays an integral role in helping to meet the Southern California regional demand for passenger, cargo and general aviation service. Each airport makes a distinct contribution to the strength of the system as it provides a high level of safety, security and service for its customers, communities and stakeholders. LAX is the sixth busiest airport internationally and the third busiest in the United States. Ontario ranks 59 among U.S. airports. Van Nuys ranks 25 internationally in the number of flight operations, and is the world's busiest general aviation airport.

SOURCE Air Transport Association

/CONTACT: Air Transport Association, Elizabeth Merida, +1-202-626-4205, emerida@airlines.org; or Rentech, Inc., Julie Dawoodjee, +1-310-571-9800, ext. 341, jdawoodjee@rentk.com; or Aircraft Service International Group, Yvonne Coleman, +1-407-648-7373, yvonne.coleman@asig.com, or Los Angeles World Airports, Nancy Suey Castles, +1-424-646-5260, ncastles@lawa.org

Web site: http://www.airlines.org

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