DENVER -- Rentech Inc. and Agrium Inc. announced today that they continue to move forward with the sale of the East Dubuque, Ill., nitrogen fertilizer facility to Rentech, Inc. in accordance with the terms of the agreements between Rentech and Royster-Clark Inc. prior to the acquisition of Royster-Clark by Agrium.



Rentech announced in November 2005 that its wholly owned subsidiary, Rentech Development Corporation, had signed a definitive agreement with Royster-Clark Inc. for the sale of its 830-ton-per-day natural-gas-fed nitrogen fertilizer plant in East Dubuque for $50 million.



Upon close of the transaction, Royster-Clark will be appointed the exclusive distributor for the sale, purchase and resale of anhydrous ammonia, UAN solutions, nitric acid and granular urea manufactured at the plant for agricultural and industrial use in the United States, all subject to the terms of a distribution agreement.

"We are very supportive of Rentech's goal of converting the facility from a natural-gas-based ammonia facility to a coal-fed facility and look forward in marketing this product under a long-term distribution and sale agreement with Rentech," said Michael Wilson, president and CEO of Agrium.



Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North and South America. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash, as well as controlled-release fertilizers and micronutrients.

Rentech Inc., a Colorado corporation formed in 1981, develops technology and projects to transform underutilized hydrocarbon resources into valuable alternative fuels and clean chemicals.

SOURCE: Rentech, Inc. and Agrium Inc. via PR Newswire.