Tyson Foods (TSN) and Syntroleum (SYNM) Approve Dynamic Fuels Plant Construction

July 15, 2008 4:13 PM EDT

Tyson Foods (NYSE: TSN) and Syntroleum Corporation (NASDAQ: SYNM) have given final approval for plans to build and fund Dynamic Fuels' first renewable synthetic fuels facility in Geismar, Louisiana. The sanctioning decision, announced today, means both companies have committed to construction of the Geismar facility.

In conjunction with plant approval, Tyson and Syntroleum have approved the project budget of $138 million. Capital funding includes $100 million in GO Zone Bonds previously approved by the Louisiana State Bond Commission. The balance of $38 million will be funded through equity contributions in the form of cash commitments of $19 million per owner, $13.25 million of which each owner delivered to Dynamic Fuels on July 11.

Dynamic Fuels is a 50:50 venture between Tyson and Syntroleum to convert low grade, inedible fats and greases into renewable transportation fuels for the military and civilian markets. Once in operation, the Geismar plant is expected to produce about 75 million gallons of renewable synthetic fuel annually.[SM]

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