GEISMAR, La. – Tyson Foods Inc. and Syntroleum Corp. on Monday broke ground for a new renewable fuels plant in Geismar, La., near Baton Rouge.

The plant is being built by Dynamic Fuels, a joint venture between Tyson and Syntroleum. It will produce diesel and jet fuel from animal fats and greases.

The new facility will reportedly use Syntroleum’s Bio-Synfining Technology (patent pending) 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, such as beef tallow, pork lard, chicken fat and greases.

“There is currently no other fuel production facility like this in the U.S., so we’re very excited about building the first one,” said Jeffrey Bigger, director of the Dynamic Fuels LLC Management Committee. “We believe this location offers the infrastructure we will need to succeed, including access to ports and a high quality workforce.”

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.

Source: Tyson Foods Inc.