Processing Magazine

Construction underway on Dynamic Fuels plant

January 14, 2009

Initial construction is underway in Geismar, Louisiana, for the new plant being built by Dynamic Fuels, a joint venture of Tyson Foods and Syntroleum Corporation, company officials reported. Construction offices are now in place, and concrete foundations are being poured for the new facility. The project remains on budget and on schedule for startup in early 2010. Once in operation, the new facility will use Syntroleum''s Bio-Synfining™ Technology to convert animal fats and greases provided by Tyson into ultra-clean renewable diesel and jet fuel. The project is scheduled for mechanical completion by year-end 2009, followed by commissioning, start-up and ramp-up to full rate operations by mid-year 2010. Due to the long lead times required to build some of the process equipment, the company began the bidding process for this equipment in November 2007. To date, Dynamic Fuels has ordered 36 long lead equipment items, including three reactors, seven storage tanks, 14 heat exchangers, three separators, three pump packages, one membrane unit, two compressor packages and two tank mixers. These items are scheduled for delivery in the 2nd and 3rd quarter of 2009. The facility cost estimate is $138 million. The project is being funded by cash investments from Tyson Foods and Syntroleum, plus the GO Zone bond proceeds. To date, Tyson and Syntroleum have invested a total of $28 million ($14 million each). The GO Zone Bond proceeds were approximately $100 million. Tyson and Syntroleum agreed a projected December 30, 2008 cash investment was not needed and that future investments would be made as the cash is needed to meet project expenses. Staffing with permanent plant personnel is expected to start mid-year 2009 as construction progresses and plant start-up approaches.