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CTL Project Developer Perspective Coal - To - Liquids Coalition

Rentech, Inc. is a leader in Fischer-Tropsch technology for producing clean fuels from coal and biomass. They are developing several projects in the United States to commercialize their technology. Their strategy is to accelerate deployment of their process through a conversion project in East Dubuque, Illinois and developing additional strategic projects. Their technology offers benefits like feedstock flexibility, lower costs, stable performance, and producing ultra-clean fuels with lower regulated emissions than petroleum diesel. Rentech aims to establish itself as the leading FT company in North America.

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CTL Project Developer Perspective Coal - To - Liquids Coalition

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dwivediashish2

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CTL Project Developer Perspective Coal-to-Liquids Coalition

Rentech, Inc. August 15, 2007

Safe Harbor Statement This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 about matters such as the Companys plans to convert its nitrogen fertilizer plant, construct a product development unit , develop additional projects and the projected economics of such projects. These statements are based on managements current expectations and actual results may differ materially as a result of various risks and uncertainties. Other factors that could cause actual results to differ from those reflected in the forward-looking statements include, the ability of Rentech to have the financial means to fund the proposed conversion and construction of the fuels plants, whether Rentechs proposed product development unit will operate successfully and other risks, including those set forth in the Companys press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentechs web site at www.rentechinc.com. The forward-looking statements in this presentation are made as of date given, and Rentech does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.

Rentech US Leader in Fischer-Tropsch (FT) Technology

Environmentally sound
Rentech technology is CO2 capture-ready FT fuels have lower regulated emissions than petroleum diesel

Proven and superior FT Technology

25 + years of FT technology development 21 US patents, with others pending

Successfully deployed in operating facilities

6 pilot plants Constructing fully-integrated 10 bbl/d FT unit (PDU)

Strong basis for execution

Clear strategy Experienced management
3

Why FT? Why Now?

Crude Oil, 2005 $/bbl 70 60 50 40 30 Zuni 20 10
4

E. Dubuque,IL 1st Comm Unit

Sand Creek PDU

La Porte
Demo Unit Synhytech Demo Unit Bubble Column Reactor R&D Center

Boulder
Mfg Catalyst Developed Catalyst

Sterling First Plant

82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Opportunities Remain over Next Two Decades

Crude Oil Price, 2005 $/bbl
80 70 60 50 40 30 20 10 0
80 70 60 50 40 30 20 10 0

35 billion gallons/year alternative fuels by 2017 13 billion? FT Fuels 2 billion biodiesel 5 billion cellulosic ethanol

04
5

20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20

15 billion corn ethanol

26 28

Forecast source: EIA

Rentech FT Market Opportunity

Diverse and high value set of products derived from Rentech Process
JP-8 and jet fuel Specialty chemicals - surfactants Ultra low sulfur diesel fuel
Millions B/D 2.0 1.5 1.0 0.5 0 .3 1.3 3.0 2.5 2.6

Military consumption of fuel

Pentagon target to purchase 50% of its aviation fuel needs from domestic synthetic sources by 2016

Military Commercial Ultra-Low Aviation Sulfur Diesel

Technology Advantages
Feedstock Flexibility Lower Costs
Wide range of potential feedstock, including coal of various qualities, petroleum coke, natural gas, municipal waste and biomass Slurry reactor
Higher on-line time and throughput Lower pressure drop and excellent temperature control Ease of scale-up

Stable Performance

Iron-based catalyst
Higher diesel production Significantly lower risk of sulfur poisoning Lower cost with simple disposal

Flexible

Can use multiple commercially available proven technologies on front and back-end

Ultra-Clean Fuel
High Performance
Higher cetane index improves engine performance

Existing infrastructure
Todays pipelines Todays engines

Environmentally superior fuel

Significant emissions reduction Exceeds global sulfur and aromatics requirements

Storage stability
Long shelf life ( 8 years)

Biodegradable
8

Lower Regulated Emissions

Lower Emissions than Low-Sulfur Diesel, %

0 10 20 30 40 50 60 70 80

Hydrocarbon

Carbon Monoxide

Nitrogen Oxide

Particulates

Cruising Idling

U.S. Military Testing

Less Carbon Dioxide Wellhead to Wheels

1200 1000
g CO2-eq/mile in SUV

800 600 400 200 0

IL # 6 Co a l Ba s e lin e V e n e z u e la n Sy n c r u d e

IL #6 Coal With Sequestration

Extraction/Production
10

Refining

Transport

End Use

Based on Marano-Ciferno CTL Study for NETL

Why Coal?
Most economic Most abundant resource Economies of scale of coal conversion Low cost of feedstock Aggregate large quantities Use existing infrastructure

With carbon capture and sequestration, greenhouse gas footprint of FT fuels are comparable to or lower than that of petroleum-derived fuels
11

Carbon Reduction Plan

Test various biomass feedstock at Production Development Unit Install commercial biomass gasification unit at Rentech Energy Midwest Corp to produce 500 700 bpd of FT fuels from biomass Produce FT fuels on a large commercial scale through a co-feed of biomass with coal or petroleum coke Produce renewable ultra clean synthetic fuels at small scale standalone biomass facilities

Objective: Further reduce greenhouse gas footprint of FT fuels to a level significantly below that of petroleum-derived fuels
12

Strategies and Execution

Strategy
Accelerate deployment of the Rentech Process Develop strategic projects in the U.S.

Execution
Acquisition and conversion of operating ammonia fertilizer facility to accelerate time to market Facilitate use of the Rentech Process at multiple sites Expandable in standard increments

Develop a repeatable and scalable process Maintain FT technology leadership

Continued innovation through research and development Domestic and International Licensing on selected basis

Expand the reach of the Rentech Process

Objective: Establish Rentech as the leading North American FT company.

Competitiveness of Coal-Based FT Fuel

$89
$80 $70 $60 $50 $40 $30 $20 $10 $0 Ave. 2007 Price for Crude Oil ULSD Price Cash Cost of FT Fuel

$63

$44

Source: Company data and EIA

Typical Greenfield Project Economics

Greenfield FT Project 30,000 bbls/d
Total Revenues: $900 MM

Other Products (2)

$150
EBITDA Margin EBITDA Margin: $500 MM

Fuels

$750

Opex Consumables (1)

$75 $100
Expenses: $400 MM

Coal

$225

Revenues ($MM)
Note:

Cash Expenses ($MM)

(1) (2)

All figures estimated on an annual basis. Production assumed at 93% capacity. Assumptions: 12.5% premium to ULSD; $61/barrel crude price; $45/ton coal Includes oxygen, FT catalyst, and royalties. Includes Argon, krypton, xenon, propane and butane.

Product Development Unit Sand Creek, Colorado

First fully-integrated FT biomasscoal-to-liquids facility Produce ultra-clean diesel, aviation fuels and naphtha Provide product for testing Training center for operators including safety procedures Feedstock testing Technology advancement Validate technology scale-up First production in Spring 2008

Developers Perspective
Site Land Water Transportation Power CO2 solution Financing Product markets Feedstock supply Partners Government Support Regulatory certainty Risk management New industry initiation

Facility Technology Configuration Cost

First U.S. Commercial CTL Plant East Dubuque, Illinois

Rentech Energy Midwest Corp.
Existing Facility: Nitrogen Fertilizer Production Uses natural gas as input Production of 830 tons per day 40-year operating history

Conversion
Future Facility: Nitrogen Fertilizer & Clean Fuels Capacity to produce up to 1,000 tons/day of ammonia and 2,000 barrels/day of clean fuels and chemicals Less expensive and more price-stable input Develop market for clean fuels and chemicals Plant will remain open through conversion process

The East Dubuque plant enables Rentech to accelerate FT technology deployment

REMC Project Timeline and Scope

Phase 1 Install coal gasification unit (plus spare) Produce syngas for manufacturing up to 1,000 tpd of ammonia fertilizer Expected cost: $800MM Phase 1A Add Rentechs proprietary CTL technology Use the Rentech Process to produce up to 2,000 barrels/day of synthetic fuels Expected cost: $100MM Phase 2 Scale-up opportunity exists to add biomass gasification unit and additional clean fuel production capacity Produce incremental 500 700 bpd of FT fuels from biomass

2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Phase 1 Coal Gasification Unit Producing Ammonia Fertilizer Construction to Start-Up Phase 1A - FT Unit to Produce UltraClean Motor Fuels Construction to Start-Up Phase 2 - Biomass Gasification Unit Construction to Start-Up

REMC Project Team

Equipment Engineering Technology and Construction ConocoPhillips
Gasifier Technology

Chapman & Cutler Credit Suisse

Financial Advisor Bond Counsel

Latham & Watkins

Legal Counsel

Finance and Legal

Goldman Sachs
Bond Underwriter

Chadbourne CB&I
EPC Contractor Special Tax Counsel

Katten, Muchin, Rosenman

Underwriters Counsel

REMC
Worley Parsons
Engineering

Peabody
Development Partner

UOP
FT Upgrade Technology

Trinity
Environmental Consultant

Haldor Topsoe
AmmoniaTechnology

State of Illinois
Partner

Agrium Peabody Energy

Fuel Supply Fertilizer Distribution

Rentech
Project Sponsor

Operations and Environmental

Rentech Strategic Fuels & Chemicals Complex Natchez, MS

Land optioned and due diligence in progress Feasibility study underway Inducement for up to $2.75 billion in tax-exempt and taxable bonds approved Signed CO2 off-take agreement with Denbury Resources, Inc. for all captured CO2 at facility Produce FT fuels on a large commercial scale through co-feed of biomass with coal or petroleum coke 25,000 bpd plant (with potential to expand to 50,000 bpd) expected to be completed in 2012

Mingo County, West Virginia

Rentech and Mingo County Redevelopment Authority entered into Joint Development Agreement for the potential development of an FT plant to be located in Mingo County, West Virginia Biomass and coal-to-liquids facility Up to 30,000 bpd plant Currently in feasibility phase Application for grant with the Appalachian Regional Commission selected for funding consideration Strong local, state and federal support

Montana and Illinois Basin

Rentech and Peabody Energy entered into Joint Development Agreement for the co-development of two potential CTL Plans Intend to make use of Peabodys reserves in Montana and Kentucky Benefits of mine-mouth facilities include improved logistics and lower feedstock costs 10,000 bpd and 30,000 bpd CTL plants Recently awarded grant from Commonwealth of Kentucky to help fund feasibility study Currently in scoping and feasibility phases

DKRW Medicine Bow, Wyoming

Rentech signed Master License Agreement with DKRW Advanced Fuels LLC for use of Rentechs FT technology Proposed plant in Medicine Bow, Wyoming Construction to begin in 2008 Funding to be competed in mid-2008 13,000 bpd facility with potential expansion of up to 35,000 bpd, to be completed in 2011 Currently in FEED phase Currently negotiating EOR opportunities for captured CO2 Master License Agreement is for up to 500,000 bpd

Greenhouse Gases and FT Fuels

FT Fuels are part of the GHG management solution FT plants will: Reduce GHG emissions versus oil Provide foundation for investment in GHG management and sequestration process and technology Provide near-term CO2 for proving of geological sequestration options

Federal Policies to Advance FT Fuels

Extension of existing 50 cents/gal excise tax credit Purchasing mandates similar to those for ethanol and other biofuels Extension of DoD contracting authority to allow 15-20 years supply contracts Loan guarantees Price collars