Tyson joint venture to continue renewable fue...

Tyson joint venture to continue renewable fuels project

Initial construction is underway in Geismar, Louisiana (USA), for the new plant being built by Dynamic Fuels. Dynamic Fuels is a joint venture of Tyson Foods and Syntroleum Corporation, company officials reported.

Construction offices are now in place and concrete foundations are being poured for the new facility. The project remains on budget and on schedule for startup in early 2010. Once in operation, the new facility will use Syntroleum’s Bio-Synfining™ Technology to convert animal fats and greases provided by Tyson into ultra-clean renewable diesel and jet fuel.

Jeff Webster, group vice president of Tyson's Renewable Products Division, said, they were pleased with the progress made on this important renewable fuels project. Tyson was committed to revolutionizing the conversion of raw materials and by-products into high-margin initiatives, and the Dynamic Fuels venture is a cornerstone of this corporate strategy.

The project is scheduled for mechanical completion by year end 2009, followed by commissioning, start-up and ramp up to full rate operations by mid-year 2010.

Due to the long lead times required to build some of the process equipment, the company began the bidding process for this equipment in November 2007.

The facility cost estimate is $138 million. The project is being funded by cash investments from Tyson Foods and Syntroleum, plus the GO Zone bond proceeds. To date Tyson and Syntroleum have invested a total of $28 million ($14 million each). The GO Zone Bond proceeds were approximately $100 million. Tyson and Syntroleum agreed a projected December 30, 2008 cash investment was not needed and that future investments would be made as the cash is needed to meet project expenses.
Source: Tyson Foods, Inc.


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