Tyson to press ahead with synthetic fuels plant

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

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.

Unlike the ethanol and bio-diesel industries, which use food ingredients such as corn and soy to produce fuel, the Dynamic Fuels project will use non-food grade animal fats produced or procured by Tyson Foods, such as beef tallow, pork lard, chicken fat and greases.

The project, budgeted at US$138 million, includes US$100 million in GO Zone Bonds previously approved by the Louisiana State Bond Commission. The balance of US$38 million will be funded through equity contributions in the form of cash commitments of US$19 million per owner. 

Construction is expected to begin in October, and mechanical completion of the plant is expected by year end 2009.

Once in operation, the Geismar plant is expected to produce about 75 million gallons of renewable synthetic fuel annually.

The fuel produced will offer the same benefits of synthetic fuels derived from coal or natural gas while providing improved performance and environmental advantages over petroleum-based fuels.