It's fuel speed ahead for synfuels plant

Aug. 1, 2008
Tyson Foods and Syntroleum Corporation have given final approval for plans to build and fund Dynamic Fuels' first renewable synthetic fuels facility in

Tyson Foods and Syntroleum Corporation have given final approval for plans to build and fund Dynamic Fuels' first renewable synthetic fuels facility in Geismar LA. Dynamic Fuels is a 50/50 venture between Tyson and Syntroleum to convert low-grade, inedible fats and greases into renewable transportation fuels for the military and civilian markets.

Both firms have approved the project budget of $138 million. Capital financing includes $100 million in GO Zone Bonds previously approved by the Louisiana State Bond Commission. The balance of $38 million will be financed through equity contributions in the form of cash commitments of $19 million per owner, $13.25 million of which each owner delivered July 11 to Dynamic Fuels.

Construction of Dynamic Fuels initial refinery remains on schedule. It is expected to begin in October, and mechanical completion of the plant is expected by year-end 2009. Prior to plant sanction, Dynamic Fuels placed orders for long lead time equipment, thereby locking in pricing and securing delivery times consistent with the overall project schedule.

Once in operation, the Geismar plant is expected to produce about 75 million gallons of renewable synthetic fuel annually. Fuel produced by the venture will offer the same benefits of synthetic fuels derived from coal or natural gas while providing performance and environmental advantages over petroleum-based fuels. Benefits include higher cetane levels, which are a measure of combustion quality, and superior thermal stability. Replacing traditional petroleum fuel with this fuel also substantially reduces total greenhouse gas emissions.

The Dynamic Fuels project will use various non-food grade animal fats produced or procured by Tyson, such as beef tallow, pork lard, chicken fat, and greases.

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