Clean energy firm Rentech has announced that DKRW Advanced Fuels's MBFP project is continuing to develop its coal-to-diesel project under a site license agreement with Rentech for a synthetic fuels project under development in Wyoming.

DKRW said that it is planning to expand its production capability to include gasoline at the Medicine Bow Fuel and Power (MBFP) project in Carbon County. It will also continue to develop on a parallel path a Fischer-Tropsch coal-to-diesel facility under its existing site license agreement with Rentech.

Upon successful completion of this development, MBFP would use Rentech’s process and purchase the catalyst developed for the plant. In addition, Rentech would also receive license fees based on plant production capacity and achievement of certain milestones as set forth in the agreement.

Plans for the proposed project were revised to accommodate changes in the testing timeline at Rentech’s product demonstration unit (PDU).

The PDU is designed to produce ultra-clean diesel and aviation fuels and naphtha using natural gas and various coals and biomass on a demonstration scale. The company said that the construction of the unit is nearing completion and it remains on schedule to begin synthetic fuel production at the unit in the spring of 2008.