Rentech Sells Alternative Energy Business to ChineseWednesday, March 5, 2014
Rentech Inc. on Wednesday announced that it has agreed to sell its alternative energy technologies and equipment to a Chinese company.
Sunshine Kaidi New Energy Group Co., a renewable energy company in Wuhan, China, will make an initial $15.3 million payment to Rentech, with a potential additional payment of up to $16.2 million upon the successful completion of a demonstration plant in China.
Rentech Inc. in Westwood last year abandoned its green fuel development efforts, primarily synthetic diesel for aircraft, in order to focus on its wood chip processing and nitrogen fertilizer manufacturing businesses.
“We are pleased Kaidi has agreed to purchase these assets with plans to demonstrate and commercialize them in alternative energy projects abroad,” Chief Executive D. Hunt Ramsbottom said in a statement. “The energy landscape and lack of government support no longer make their deployment economic in the U.S. in the foreseeable future.”
The deal is expected close in the middle of the year, pending regulatory approvals in the United States and the People’s Republic of China.
Rentech shares closed up 5 cents, or 2.6 percent, to $1.98 on the Nasdaq. Its majority owned spinoff, Rentech Nitrogen Partners, rose 71 cents, or 3.8 percent, to $19.07.