Advanced Biofuels

Dynamic Fuels Opens Renewable Diesel Plant in Geismar, LA

Date Posted: November 8, 2010

Geismar, LA—Operations are underway at the new Dynamic Fuels plant, which is successfully converting animal fats and greases into high quality renewable fuels, officials from Syntroleum Corporation (NASDAQ: SYNM) and Tyson Foods, Inc. (NYSE: TSN) announced Nov. 8.

Production began in early October and the volume being produced is 2,500 barrels per day and growing.

Dynamic Fuels LLC is a 50/50 joint venture of Syntroleum and Tyson. Unlike the ethanol and biodiesel industries, which use food ingredients such as corn and soybean oil to produce fuel, Dynamic Fuels uses non-food grade animal fats and greases.

"We're very pleased with the progress at the plant and the quality of the fuel it's producing," said Jeff Webster, group vice president of Tyson's Renewable Products Division.

"This fuel offers the same benefits of synthetic fuels derived from coal or natural gas, including substantial performance and environmental advantages over petroleum-based fuels."

To date, the Geismar, Louisiana, plant has manufactured renewable diesel with a cloud point as low as minus 26°F and cetane as high as 88, more than twice that of the ASTM petroleum diesel specification.

The facility's renewable diesel fuel product meets all ASTM D975 specifications for diesel fuel.

Gary Roth, chief executive officer of Syntroleum, said, "Our U.S. plant is producing some of the highest quality diesel fuel in the world, and best of all, it is renewable with a carbon footprint 75% below that of petroleum diesel.

"We can also make renewable, high value specialty distillate products that can be used in a wide variety of applications such as dry cleaning, ink cartridges and drilling fluids, and we are actively pursuing these markets."

The first shipments of fuel started leaving the Geismar, Louisiana, plant in October.

"There's been tremendous interest in our fuels and so far our customers include a range of fuel distributors and end users, including the U.S. military," said Bob Ames, vice president of Renewable Energy for Tyson Foods.

Dynamic Fuels has been making jet fuel for testing by the Air Force Research Laboratory.

This is the first renewable jet fuel to be tested by the Air Force that has been produced in a domestic commercial scale facility.

"We look forward to working with the Air Force in its fuel certification program," said Ames.

Tyson and Syntroleum officials remain hopeful Congress will restore the $1 per gallon renewable diesel tax credit that expired in December 2009.

Fuel from the Geismar plant qualifies for the credit, which would help the economic feasibility of the operation and help recover development costs.

"More consistent and timely action by Congress on this and other biofuels tax credits is needed to provide stability and encourage the growth of the advanced biofuels industry, which is poised to help reduce the nation's dependence on foreign oil," said Webster.

The new facility uses Syntroleum's Bio-Synfining™ Technology to produce the renewable fuels from non-food grade animal fats produced or procured by Tyson Foods, such as beef tallow, pork lard, chicken fat and greases.

The plant is designed to produce up to 75 million gallons of renewable fuels per year.

The operation currently has 44 permanent full-time positions on site and maintains 13 full-time start-up support personnel.

To see video of operations at Dynamic Fuels, click on the following link:

Photos of the facility can be seen by clicking:

For more information, call 479-290-6111.

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