Rentech Inc., Denver, and Republic Financial Corp. Aurora, Colo., have signed a definitive agreement to acquire Sand Creek Chemical's 25 million gal/year methanol plant at Commerce City, Colo.
Rentech-a gas-to-liquids (GTL) process technology developer-plans to convert the facility to a GTL plant that will produce synthetic diesel, naphtha, petroleum waxes, and other products via the Fischer-Tropsch (F-T) process.
The plant is adjacent to a refinery owned by Conoco Inc. The purchase includes the methanol plant, all supporting infrastructure, buildings, and the 17-acre site.
The plant will be owned by Sand Creek Energy LLC (SCE), a 50-50 joint venture of Rentech unit Rentech Development Corp. and RFC-Sand Creek Development LLC, a wholly-owned subsidiary of Republic Financial.
The Sand Creek plant started up in 1992. It was shut down recently due to methanol oversupply, says Rentech.
SCE is developing a plan to convert the methanol plant into a GTL plant capable of producing 800-1,000 b/d of high-value fuels and products, including clean-burning diesel fuel that is free of sulfur and aromatics.
The products will be made by converting natural gas to a synthetic liquid stream that is separated into various fuel products.
In previously conducted tests of diesel fuel made from the Rentech process, vehicle emissions were reduced by more than 25% compared with vehicles powered by conventional diesel fuel or California Air Resource Board (CARB) diesel, the cleanest diesel fuel available in the US, says Rentech.
"Much of the infrastructure necessary for a GTL plant is already in place at the Sand Creek location, most importantly the synthesis gas generation equipment," said Rentech. "This equipment processes the natural gas feedstock into synthesis gas, or syngas, a mixture of carbon monoxide and hydrogen, which is required to make Rentech's Fischer-Tropsch fuels and products."
The capital cost of retrofitting the Sand Creek plant to produce F-T fuels and products is expected to be 50-60% less than that of constructing a grassroots GTL plant, according to Rentech. "Additionally, the engineering and construction time frame is expected to be substantially less than that required for a new GTL plant," said the company.
The revamped plant is slated for start-up in mid-2001.
Ronald C. Butz, president of Ren- tech Development, said, "Sand Creek presents a unique opportunity to implement gas-to-liquids quickly and effectively. It has become evident that there is great interest in GTL, but the time frame for commercial implementation is lengthy, and the capital costs are high.
"Retrofitting the Sand Creek facility with Rentech's F-T technology addresses both of those development obstacles."
