Tyson and Syntroleum JV to Build Synthetic Fuel Plant in Louisiana

13 November 2007

Dynamic Fuels LLC, a company created by Tyson and Syntroleum Corporation, (earlier post) has selected an existing industrial site in Louisiana to build a plant to produce synthetic fuels from renewable feedstocks such as animal fat and grease. The specific location has not yet been disclosed.

Construction is expected to start in 2008 with completion set for early 2010. The project, which will cost up to $150 million, will generate approximately 250 short-term construction jobs and 65 highly skilled permanent jobs.

Once fully operational, the facility is expected to produce 75 million gallons of fuel a year from animal fats, greases and vegetable oils supplied by Tyson. The unblended fuel can be used as a premium fuel in existing diesel engines with no engine modifications required and can also be upgraded into ultra-clean, high quality synthetic jet fuel.

Tyson and ConocoPhillips also continue to move forward with plans to convert animal fats into renewable diesel fuel via a refinery hydrogenation process. (Earlier post.) Capital investment for phase one, testing protocols and the establishment of pre-processing conditions, are complete and production is currently expected to start in December. Tyson will initially provide beef tallow from its Amarillo, Texas, beef complex to the ConocoPhillips refinery in nearby Borger, Texas.