Syntroleum Corporation reported that the Dynamic Fuels plant in Geismar—its 50/50 joint venture with Tyson Foods (earlier post)—produced 5.4 million gallons (20.4 million liters) of drop-in synthetic fuel in July, a production level representing 87% of the plant’s design capacity.
The 5.4 million level implies an annual run rate of 65 million gallons per year, Syntroleum noted. The Geismar Plant was designed to produce 75 million gallons per year and the plant has demonstrated production rates of 120% of its design basis.
We have focused 100% of our energy since last October on bringing our first of a kind advanced biofuels plant up to commercial production rates. Now that we have accomplished this, we intend to focus our efforts on optimizing the plant’s performance enabling us to produce more and more of the drop-in renewable fuels needed to meet the growing demand for biofuels.—Gary Roth, CEO
Financials. For the six months ended 30 June 2011, Syntroleum reported an operating loss of $1.8 million resulting from total revenues of $2.0 and operating expenses of $3.8 million. Revenues related to engineering services provided to Dynamic Fuels and other customers for process design and research support. Syntroleum also recorded revenues for royalties from the Dynamic Fuels commercial production which began in November.
For the six months ended 31 March 2011, Syntroleum reported a loss from Dynamic Fuels of $6.9 million. During this time period, the plant operated at approximately 20% of plant design, producing 6.5 million gallons of renewable fuels of which 5.7 million gallons were sold.
Syntroleum reports Dynamic Fuels on a three month lag and the loss reflected in the income statement from Dynamic Fuels represents the loss incurred for the period ending 31 March 2011.
Net loss was $5.5 million or $0.07 per share and $9.4 million or $0.11 per share, respectively, for the three month and six month periods ended 30 June 2011, compared with $1.0 million or $0.01 per share and $0.6 million or $0.01 per share for the corresponding periods in 2010.
Syntroleum Corporation owns the Syntroleum Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock.
The Dynamic Fuels JV was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010.