Dynamic Fuels, a joint venture of Tyson Foods and Syntroleum Corp., reported that the initial construction is underway for a new plant in Geismar, Louisiana. As previously covered on Alternative Energy Africa, the groundbreaking ceremony for the new facility was held October 6, 2008.
The project is expected to be complete with the startup to begin in early 2010 with a total capacity of 75 million gallons per year of renewable fuels. The new facility will use Syntroleum’s Bio-Synfining Technology™ to produce high quality renewable fuels. Unlike the ethanol and bio-diesel industries, which use food ingredients such as corn and soybean oil to produce fuel, the Dynamic Fuels project will primarily use non-food grade animal fats produced or procured by Tyson Foods, such as beef tallow, pork lard, chicken fat, and greases.
"There has been great progress in the last 18 months since the formation of Dynamic Fuels, as we have gone from concept to actually pouring concrete for the first renewable synthetic fuels plant in the United States," said Jeff Bigger, senior vice president of business development for Syntroleum. "With the support of the State of Louisiana, outstanding effort and teamwork from the people working day to day on the project and the support of both Tyson Foods and Syntroleum we have been able to maintain our original project budget, economics and schedule for the Geismar facility."
The plant will employ 250 full-time workers at the peak of construction. Once in operation, the facility will employ 45 people and generate an annual payroll of more than $4 million, plus 20 full-time equivalent maintenance contractors.
The projected cost of the new plant is $138 million. Capital funding is expected to include $100 million in Gulf Opportunity Zone Bonds previously approved by the Louisiana State Bond Commission. The balance of $38 million is being funded through equity contributions in the form of cash commitments in equal proportions from Tyson and Syntroleum.