U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 15, 1999
RENTECH, INC.
(Exact name of registrant as specified in its charter)
Colorado 0-19260 84-0957421
(State of incorporation) (Commission File Number) (IRS Employer
Identification No.)
1331 17th Street, Suite 720, Denver, Colorado 80202 80202
(Address of principal executive offices) (Zip Code)
(303) 298-8008
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Item 5. Other Materially Important Events.
Rentech has entered into an agreement to provide technical services
to Texaco Energy Systems, Inc., a division of Texaco, Inc. Rentech will
pursue a research effort integrating Rentech's Fischer-Tropsch (F-T)
process technology with Texaco's Gasification Process to produce liquid
hydrocarbon products including a clean burning, sulfur and aromatic free
diesel fuel.
The agreement calls for technical and developmental work to be
carried out at the Rentech research and development facilities in Denver.
The goal is to enhance process configuration and maximize the hydrocarbon
yield from synthesis gas ("syngas") produced by the Texaco Gasification
Process. Rentech's work has already been initiated and, under the terms
of the agreement, will be carried out over the next 18 months.
The new agreement advances the License Agreement the two companies
signed on October 8, 1998. Under the License, Texaco will use Rentech's
F-T technology in combination with Texaco's proprietary Gasification
Process to produce liquid hydrocarbon products.
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The Texaco Gasification Process produces synthesis gas by partial
oxidation of carbon-based substances. The synthesis gas will be used as
feedstock for Rentech's F-T technology, also known as gas-to-liquids
technology. Rentech expects the combination of the two technologies will
enable production of liquid hydrocarbons that are environmentally
superior as well as converting many unuseable or unmarketable sources of
energy into useful products.
Texaco Energy Systems Inc. was recently formed to manage the
company's extensive expertise in fuel conversion technologies to advance
the development of commercially viable, environmentally beneficial
alternative fuel systems based on the use of hydrocarbon feedstocks. In
addition, Texaco Energy Systems leads Texaco's investigation of fuel cell
technology for transportation and distributed power systems.
Rentech has previously received an upfront license fee from Texaco
and has been receiving monthly payments as advance royalties as well as
monthly technical support fees. Under the terms of the technical
services agreement, Rentech will continue to receive these monthly
payments. Rentech will also be paid for the time spent on the work by
its scientists and technicians and for the use of its research and
development facilities and will be reimbursed for any other costs of the
program. Rentech estimates that it will receive total payments for
performing the technical services for Texaco, under the agreement, of up
to $2 million over the next 18 months.
Certain portions of this report constitute forward-looking
statements about Rentech's plans, objectives and future performance. The
words "anticipate," "believe," "expect," "estimate," "project,"
"substantial," "significant," "will," "may" and similar expressions
identify forward-looking statements. Although Rentech believes its
statements to be reasonable, the forward-looking statements involve risk
and uncertainties. There can be no assurance that actual results, such
as the ability of Rentech to obtain the described fees, royalties and
other charges, complete the technical services agreement, and receive the
anticipated payments, or realize the overall results of the program, will
be achieved. Moreover, other risk factors, as described in the Company's
periodic reports filed with the Securities and Exchange Commission, could
cause actual results to differ from those anticipated by forward-looking
statements contained in this report.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned "hereunto duly authorized.
RENTECH, INC.
By: (signature)
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Dennis L. Yakobson, President,
and Chief Executive Officer
Date: June 15, 1999
