Dynamic Fuels to Start Construction of Louisiana Synthetic Diesel Plant in Fall

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Researched by Industrial Info Resources (Sugar Land, Texas)--Dynamic Fuels LLC (Tulsa, Oklahoma), a 50:50 joint venture between Syntroleum Corporation (NASDAQ:SYNM) (Tulsa, Oklahoma) and Tyson Foods Incorporated (NYSE:TSN) (Springdale, Arkansas) have received joint approval to continue the development of a new synthetic diesel plant that will be located in Geismar, Louisiana.

The commercial-scale plant will utilize Syntroleum's Fischer-Tropsch technology in the front end of the production process to convert biomass into renewable synthetic fuels. The biomass consists of a number of inedible animal fats, such as beef tallow, pork lard and chicken fats and greases generated by Tyson's food processing plants, as the feedstock material for production of the synthetic diesel.

The plant is expected to make about 75 million gallons of the renewable fuel per year and represents a capital investment of $130 million. Along with contributions from both companies, the project also received bond money from the Louisiana State Bond Commission.

The plant will be co-located at Lion Copolymer's polymers facility on the Mississippi River in Geismar. Construction is expected to get underway in October of this year, and production of fuel is expected to begin by the end of 2009.

A similar plant operated by Renewable Environmental Solutions Incorporated (Carthage, Missouri), has been in operation since July of 2003. This plant takes poultry waste from Smithfield Foods Incorporated's (NYSE:SFD) Butterball LLC turkey processing plant in Carthage and converts the fats, bones, cartilage, feathers and other wastes into renewable diesel and high-quality fertilizers.

Industrial Info's Ethanol Database provides a comprehensive outline of all current development activities in the emerging alternative fuels market. This database covers 156 ethanol plants in operation and 530 plants under development. It also covers 98 operational biodiesel plants and 245 biodiesel plants under development.

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