JV breaks ground on US fat-to-biodiesel plant

06 October 2008 19:54  [Source: ICIS news]

HOUSTON (ICIS news)--Tyson Foods and Syntroleum broke ground on a joint-venture (JV) biodiesel plant that will turn animal fat into high-quality diesel and jet fuel, the companies said on Monday.

The $138m (€101m) Dynamic Energy plant in Geismar, Louisiana, is scheduled to produce 75m gal/year (284m litres/year) of the renewable fuel by 2010, the companies said in a statement.

Arizona-based food processor Tyson will supply feedstock animal fat, while Oklahoma-based Syntroleum will bring refining technology to the project. The Louisiana government will sell $100m in bonds to pay for the plant’s expected cost, with the two companies splitting the $38m difference.

“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,” said Dynamic director Jeffrey Bigger.

The project is Tyson’s latest foray into biodiesel production. The company said its 175m gal/year renewable diesel project with oil giant ConocoPhillips is currently “under review” due to a cutback in the federal tax credits it had been eligible for.

($1 = €0.73)

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By: Ben Lefebvre
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