Market Snapshot

FROM CHICKEN NUGGETS TO SYNTHETIC FUEL

An unlikely new player has entered the biofuel arena. Tyson Foods, the world’s largest processor and marketer of chicken, beef and pork, and Syntroleum Companies recently announced the formation of Dynamic Fuels LLC to build the first commercial synthetic fuels plant in the United States. The plant will target the renewable diesel, jet and military fuel markets. And although Tyson might seem like an unlikely candidate, the company formed a renewable energy group in 2006 to explore ways to commercialize its supply of fat into biofuels as well as ways to generate energy from poultry litter and other byproducts.

Syntroleum has extensive synthetic fuels experience and has announced the next generation of synthetic biofuels made possible by the company’s proprietary Biofining process. Over 400,000 gallons of Syntroleum synthetic diesel and jet fuel have been successfully tested and “has opened the door for Syntroleum to utilize its Synfining product upgrading technology in a new way. The Biofining process makes use of renewable feedstocks, such as vegetable oils, fats and greases. Dynamic Fuels represents Syntroleum’s first commercial application of the Biofining process. In simplistic terms, the fuel will be created from Tyson’s fats and oils feedstocks and Syntroleum’s Biofining process.

According to Tyson, the first plant will be designed to produce 75,000,000 gallons per year of ultra-clean and high-performing renewable synthetic fuels beginning in 2010. And some additional plants are already in the planning stages. In the long run, Syntoleum plans to employ its proven Fischer-Tropsch capabilities to produce ultra-clean renewable synthetic fuels from the nation’s vast supply of biomass.

Source:  (June 25, 2007). “Tyson Foods and Syntroleum Launch Renewable Fuels Venture.” Syntroleum. Retrieved June 25, 2007, from www.syntroleum.com.