Rentech's wood processing business consists of the manufacture of wood chips and wood pellets.
Rentech, through its wholly-owned subsidiary, Fulghum Fibres, processes approximately 15 million tonnes of wood and bark annually into wood chips and residual fuels at its 32 wood chipping mills, 26 of which are located in the U.S. and 6 of which are located in South America.
Fulghum Fibres commands an estimated 70% of the U.S. contract chipping business and approximately 6% of total U.S. chipping market.
Wood pellets provide a clean energy source for power generation. The global demand for wood pellets is forecasted to reach 50 million tonnes by 2020, which is nearly three times the current global demand, according to the Global Market Players and Trade April 2011 report.
Rentech has positioned itself as an industrial scale supplier of wood pellets in Eastern Canada to the domestic and European utility market, with a longer-term objective of becoming one of the largest pellet producers in the world.
The Company is converting two existing fibre mills in Eastern Canada into over 4 million tonnes of wood pellets production for two utilities under long-term contracts. Rentech is also working on securing additional pellet contracts for production facilities within Eastern Canada and the U.S.