Tyson, Syntroleum j.v. to re-open in July

by Meat&Poultry Staff
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TULSA, Okla. – Dynamic Fuels, a renewable fuels plant jointly owned by Tyson Foods Inc. and Syntroleum Corp., is set to re-start after sitting idle for six months. The Geismer, La.-based plant was put on stand-by until market conditions for renewable fuels improved, company executives explained during an investor conference call May 8.

"The current economic environment for renewable diesel is favorable, but more importantly, current production seems to be consistent with regulatory requirements," said Gary Roth, CEO of Syntroleum during the company's conference call on May 8.

Roth said the company expects the plant to re-start by mid- to late July. The company ordered a new catalyst for the plant which will increase diesel yields up to 80 percent over the old system. The new catalyst cost $3 million, and should arrive at the plant in June, according to Roth.

The plant has been idle for six months at a cost of $2 million per month, and it will cost an estimated $20 million, mostly in feedstock, to re-start the plant. The Geismer facility uses 1.6 million lbs. of animal fat per day, and a 30-day supply of feedstock costs roughly $20 million at current prices.
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