Work Starts on Tyson-Syntroleum Biodiesel Plant

A special groundbreaking ceremony for the plant was held in Geismar on Monday and featured comments from Louisiana Governor Bobby Jindal, as well as Tyson and Syntroleum officials.

The new facility will use Syntroleum’s Bio-Synfining Technology (patent pending) to produce high quality renewable fuels. Unlike the ethanol and bio-diesel industries, which use food ingredients such as corn and soybean oil to produce fuel, the Dynamic Fuels project will primarily use non-food grade animal fats produced or procured by Tyson Foods, such as beef tallow, pork lard, chicken fat and greases.

"There is currently no other fuel production facility like this in the US, so we're very excited about building the first one," said Jeffrey Bigger, director of the Dynamic Fuels LLC Management Committee.

"We believe this location offers the infrastructure we will need to succeed, including access to ports and a high quality workforce. In addition to creating unique, renewable fuels, this venture will also create well-compensated, highly-skilled jobs and a multi-million dollar payroll."

The Dynamic Fuels plant is currently scheduled to begin production in 2010, with a total capacity of 75 million gallons per year. It will employ 250 full-time workers at the peak of construction. Once in operation, the facility will employ 45 people and generate an annual payroll of more than $4 million, plus 20 full-time equivalent maintenance contractors.

The projected cost of the new plant is $138 million. Capital funding is expected to include $100 million in Gulf Opportunity Zone Bonds previously approved by the Louisiana State Bond Commission. The balance of $38 million is being funded through equity contributions in the form of cash commitments in equal proportions from Tyson and Syntroleum.

"We extend our sincere thanks to the state of Louisiana and Ascension Parish for their support of this important project," said Mr Bigger.

"The project is on schedule and on budget, with mechanical completion planned for year end 2009. We plan to begin fuel production in early 2010 and we believe our fuels will appeal to the operators of fleet vehicles and city buses who want to reduce emissions, as well as the military and commercial airlines seeking ultra-clean renewable jet fuel."

Dynamic Fuels will convert fats, grease and oils supplied by Tyson Foods into fuel. Low grade fats and greases will be the primary feedstocks because the cost is typically cheaper than vegetable oils and because it does not impact the human food supply.

The fuel produced by the venture will offer the same benefits of synthetic fuels derived from coal or natural gas, including substantial performance and environmental advantages over petroleum-based fuels. Its benefits will include high combustion quality, cleaner emissions and lower engine operating temperature, making it suitable for all climates and for arctic and jet fuel applications.

The renewable synthetic diesel fuel produced by Dynamic Fuels will be sold in the US within the existing diesel fuel distribution system. Its ultra-clean properties are expected to make it a popular choice for conventional diesel producers to use as a blending fuel to help conventional diesel meet minimum government emission standards.

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