Tyson, Syntroleum go on synthetic fuel plant
Dynamic Fuels is a joint venture between Tyson and Syntroleum to convert low grade, inedible fats and greases into transportation fuel for the military and civilian markets.
The companies have reported approved a project budget of $138 million, which includes $100 million in GO Zone Bonds from the Louisiana State Bond Commission. The balance of $38 million will be funded through equity contributions in the form of cash commitments of $19 million per owner.
“Approval to construct and fund the Geismar plant is a huge milestone for Dynamic Fuels, reflecting an outstanding effort by the Dynamic Fuels team to complete basic engineering and advance the project,” said Jeff Bigger, senior vice president of business development for Syntroleum.
Jeff Webster, senior vice president of Tyson's renewable products division, said, “We’re pleased to move forward on this important renewable fuels project. Tyson is committed to producing next-generation renewable fuels using non-food grade feedstocks, and the Dynamic Fuels venture is an important part of this corporate objective."
Construction is expected to be completed by the end of 2009. The plant is expected to produce about 75 million gallons of renewable synthetic fuel annually.
Source: Tyson Foods Inc.