October 6, 2008
Groundbreaking Initiated for Unique Renewable Fuels Plant in Louisiana; Dynamic Fuels Facility to Produce High Quality, Clean-Burning Diesel and Jet Fuels
GEISMAR, La., Oct. 6, 2008 (GLOBE NEWSWIRE) -- Producing high quality diesel and jet fuels from animal fats and greases will be the mission of a unique, new plant being constructed by Dynamic Fuels, a joint venture of Tyson Foods (NYSE:TSN) and Syntroleum Corporation (Nasdaq:SYNM), in Geismar, Louisiana, near Baton Rouge.
A special groundbreaking ceremony for the plant was held in Geismar today and featured comments from Louisiana Governor Bobby Jindal, as well as Tyson and Syntroleum officials.The new facility will 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 Foods, 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. In addition to creating unique, renewable fuels, this venture will also create well-compensated, highly-skilled jobs and a multi-million dollar payroll."
The Dynamic Fuels plant is currently scheduled to begin production in 2010, with a total capacity of 75 million gallons per year. It 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.
"We extend our sincere thanks to the state of Louisiana and Ascension Parish for their support of this important project," said Bigger. "The project is on schedule and on budget, with mechanical completion planned for year end 2009. We plan to begin fuel production in early 2010 and we believe our fuels will appeal to the operators of fleet vehicles and city buses who want to reduce emissions, as well as the military and commercial airlines seeking ultra-clean renewable jet fuel."
Dynamic Fuels will convert fats, grease and oils supplied by Tyson Foods into fuel. Low grade fats and greases will be the primary feedstocks because the cost is typically cheaper than vegetable oils and because it does not impact the human food supply.
The fuel produced by the venture will offer the same benefits of synthetic fuels derived from coal or natural gas, including substantial performance and environmental advantages over petroleum-based fuels. Its benefits will include high combustion quality, cleaner emissions and lower engine operating temperature, making it suitable for all climates and for arctic and jet fuel applications.
The renewable synthetic diesel fuel produced by Dynamic Fuels will be sold in the U.S. within the existing diesel fuel distribution system. Its ultra-clean properties are expected to make it a popular choice for conventional diesel producers to use as a blending fuel to help conventional diesel meet minimum government emission standards.
About Syntroleum (Nasdaq:SYNM)
Syntroleum Corporation owns the Syntroleum(r) Process for converting synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks, and the Bio-Synfining(tm) technology for converting animal fat and vegetable oil feedstocks into synthetic liquid hydrocarbons. The Company plans to use its technology to develop and participate in synthetic and renewable fuel projects utilizing the Company's technology in a number of global locations.
About Tyson Foods, Inc. (NYSE:TSN)
Tyson Foods, Inc. (NYSE:TSN), founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef, and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and service to customers throughout the United States and more than 80 countries. The company has approximately 104,000 Team Members employed at more than 300 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
This document includes forward-looking statements as well as historical information. These forward-looking statements may include statements relating to costs, timing and production of the fuel plant; job creation from plant; and fuel characteristics, benefits and uses.
This news release was distributed by GlobeNewswire, www.globenewswire.com
CONTACT: Tyson Foods, Inc. Gary Mickelson 479-290-6111 Syntroleum Corporation Ron Stinebaugh 918-764-3406 Halliburton Investor Relations Geralyn DeBusk Casey Stegman 972-458-8000