Tyson Foods has big plans to get into the biofuel business. In June, Tyson and Syntroleum formed a joint venture called Dynamic Fuels, to produce renewable fuels for diesel, jet and military markets. The venture has announced plans to build a 75 million gallon production facility in Louisiana.
Tyson has 2.3 billion pounds of fat to use as feed stock. The Air Force’s B-52 bomber is the first military jet certified for synthetic fuels. What a match! Seriously, Tyson has contracted with the Air Force for continued testing of the new fuel. Barksdale Air Force Base in Louisiana has three squadrons of B-52s, so there will be a ready market for the fuel. The biodiesel refinery will start construction in 2008, with fuel production expected to start in 2010.
The company claims the new fuel has higher energy content, better cold flow properties and less carbon emissions than the jet fuel currently available. The fuel will also be compatible with existing pipelines, storage and other infrastructure.
This is the second biofuel joint venture for Tyson. They have previously formed a strategic alliance with Conoco Phillips to produce biodiesel at one of Conoco’s existing refineries in Texas. Production there is expected to start up next month and ramp up to 175 million gallons of biodiesel a year. As another way to invest in biofuels Tyson, stock symbol TSN, is on its way to becoming a significant player. A ready source of feed stock and strong alliances show a strong future for Tyson.
If you are looking for a more aggressive way to invest, Syntroleum, stock SYNM, is a very small company with some interesting technologies.
Source: Cleantech.com
Article is not advice to buy or sell any securities.
