|Dynamic Fuels will initially use Syntroleum’s Bio-Synfining technology (Step 3 in the diagram) produce bio-hydrocarbon fuels from oils, fats and greases. Click to enlarge. Source: Syntroleum.|
Dynamic Fuels LLC, the renewable synthetic fuels 50:50 joint venture between Syntroleum Corporation and Tyson Foods (earlier post), has received final approval from the Louisiana State Bond Commission for $100 million in tax exempt Gulf Opportunity Zone (GO Zone) Bonds to fund the building of the company’s first renewable synthetic fuels facility in Geismar, Louisiana.
Dynamic Fuels will initially use the Syntroleum “Bio-Synfining” process—a biomass-optimized third-stage of Syntroleum’s full Fischer-Tropsch-based synthetic fuels process—to produce renewable diesel and renewable jet fuel. Bio-Synfining in essence treats fats, greases and vegetables oils as a Fischer-Tropsch wax, and upgrades them to renewable diesel (R-2) and renewable jet fuel (R-8).
|Dynamic Fuels plans to add a full biomass-to-liquids (BTL) front end to the Bio-Synfining process at the Geismar plant—i.e. a staged approach to full BTL. Click to enlarge. Source: Syntroleum.|
(Syntroleum calls its upgrade process for Fischer-Tropsch wax derived from coal or natural gas feedstocks Synfining, with the resulting products labelled S-2 diesel and S-8 jet fuel.)
A planned second stage to the plant will add full biomass-to-liquid (BTL) processing to the operating Bio-Synfining plant. In other words, in addition to upgrading oils, fats and greases, Dynamic fuels will also gasify biomass, process the syngas in a Fischer-Tropsch reactor, and flow the resulting FT wax into the third Bio-Synfining stage.
|The Bio-Synfining process. Click to enlarge.|
The Bio-Synfining stage converts the triglyceride molecules in fats and oils to normal paraffin isomers through hydrogenation, thermal depolymerization and isomerization. The result is conversion to a full bio-hydrocarbon molecule.
The Geismar plant will have a production capacity of 75 million gallons per year, with synthetic diesel being the primary product. Dynamic Fuels will invest $150 million in the first plant ($135 million construction capital, $15 million working capital). Construction is due to start this year, with commercial operations targeted for 2010.
The $100 million allocation is the maximum amount that can be granted for a project under policy guidelines adopted by the State Bond Commission earlier this year. This completes the approval process.
The availability of the tax exempt GO Zone bonds is the result of the Gulf Opportunity Zone Act of 2005, which is designed to help rebuild economies devastated by hurricanes Katrina and Rita.
Syntroleum Investor Presentation (March 2008)