The 50/50 venture, called Dynamic Fuels, plans to construct and operate multiple stand-alone commercial facilities capable of producing ultra-clean, high quality, next generation renewable synthetic fuels using Syntroleum’s patented Biofining process, a flexible feed/flexible synthetic fuels technology. Feedstock primarily derived from animal fats, greases, and vegetable oils will be supplied by Tyson.
The first facility will produce about 75 million gallons of synthetic fuel annually. Construction of this initial facility is expected to start in 2008 at a yet-to-be-determined site in the south central US, with production targeted for 2010. The $150 million project will generate approximately 250 short-term construction jobs and 65 permanent jobs.
Dynamic Fuels will leverage Syntroleum’s proprietary work done in producing synthetic fuel and developing synthetic fuel standards for the US Air Force and the Department of Defense. The joint venture partners claim the fuel produced by the venture will offer the same benefits of synthetic fuels derived from coal or natural gas, while providing substantial advantages over petroleum-based fuels. These benefits include higher cetane levels, which are a measure of combustion quality; significantly lower Nitrogen Oxides (NOx) and near zero sulfur. In addition, it will provide superior thermal stability, making it effective for advanced military applications.
The fuel will offer the additional benefits of higher energy content, better cold flow properties enabling it to function effectively in cold weather and reduced carbon dioxide emissions. The unblended fuel can be used in existing diesel engines with no engine modifications required and also can be upgraded into ultra-clean, high quality synthetic jet fuel.
The fuels are expected to be completely compatible with existing pipelines, storage facilities and other conventional fuel infrastructures. Further, the synthetic fuel produced by Dynamic Fuels may be blended with petroleum based diesel and/or conventional biodiesel to help those fuels achieve superior environmental and performance characteristics.
Tyson’s venture with Syntroleum represents another significant step forward in our strategy of leveraging Tyson’s access to animal by-products, our trading skills, and industry relationships to become a premier player in renewable energy, said Richard Bond, Tyson president and CEO. We believe this venture will add value to our business, give animal agriculture another opportunity to participate in the production of renewable fuels and is also an environmentally sound way to contribute to America’s energy security.
Our venture with Tyson affords us the opportunity to apply part of our established portfolio of technologies to produce next generation ultra-clean renewable synthetic fuels that contribute to our nation’s energy independence while helping reduce greenhouse gas emissions, said Jack Holmes, CEO of Syntroleum. The Tyson organization is a world class company committed to establishing a new benchmark in the renewable fuels industry, and we are proud to combine our Biofining technology with their resources in this new venture.
