Dynamic Fuels Awards Contract To L-Con Constructors
GEISMAR, La.--(BUSINESS WIRE)--Dynamic Fuels LLC has selected L-Con Constructors, a Houston-based engineering and construction company, as the lead contractor for the company's first renewable synthetic fuels facility in Geismar, Louisiana, company officials announced today.
L-Con will provide engineering, procurement, and construction services to the project. Dynamic Fuels is a 50:50 venture between Syntroleum Corporation (NASDAQ: SYNM) and Tyson Foods, Inc. (NYSE: TSN) to convert low grade, inedible fats and greases into renewable synthetic diesel, jet and military fuel.
"Awarding of the construction contract to L-Con is a key milestone in our efforts to bring next generation renewable fuels to this country," said Jeff Bigger, senior vice president of business development for Syntroleum. "L-Con won this contract in a highly competitive bidding process. They have demonstrated a proven ability to successfully complete projects on time and on budget, while maintaining excellent quality and safety records."
"We believe L-Con's extensive experience working with the petroleum and refining industry will be instrumental to the successful construction of our plant," said Jeff Webster, senior vice president of Tyson's Renewable Products Division. "We look forward to working with L-Con's team and are anxious to begin construction."
"We are proud to be a part of this exciting opportunity with Dynamic Fuels and are confident that L-Con will prove to both Syntroleum and Tyson Foods that L-Con can deliver this project to meet the stringent requirements of this facility and prove to be a true asset to the team," said Mark Peavler, L-Con's division President. "We are pleased that the Dynamic Fuels team has placed their confidence in L-Con and are well aware of the significance of this developing market for our customer."
L-Con Constructors , a division of Lexicon, Inc., is a vertically integrated full service Engineering, Fabrication and direct hire Construction Services organization providing Engineering, Design and Construction services to the petrochemical, refining, power, and heavy industrial markets. L-Con, through itself and its parent organization offers Project Development, Project Management, and all disciplines of Construction Services as well as AISC and ASME fabricated materials through its own shops totaling over 1,000,000 square feet of world class fabrication facilities.
Construction of the Geismar plant is expected to begin in the fall of 2008 with completion targeted for the end of 2009. Once in operation, the plant is expected to produce about 75 million gallons of renewable synthetic fuel annually.
The fuel produced by the venture will offer the same benefits of synthetic fuels derived from coal or natural gas while providing substantial performance and environmental advantages over petroleum-based fuels. These benefits include higher cetane levels, which are a measure of combustion quality, and superior thermal stability, making it effective for advanced military applications. These fuels are completely interchangeable with traditional petroleum based fuels and can be used in existing engines, distribution systems, pipeline and terminals. In addition, replacing traditional petroleum fuel with this fuel substantially reduces total greenhouse gas emissions.
Various non-food grade animal fats produced or procured by Tyson Foods, such as beef tallow, pork lard, chicken fat and greases, are expected to be used as renewable feedstock for this venture.
About Syntroleum (NASDAQ:SYNM)
Syntroleum Corporation owns the Syntroleum® Process for converting synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks, and the Bio-Synfining™ 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.
Forward-Looking Statements
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.
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