A planned biodiesel refinery in Louisiana that will make the green fuel from low-grade, inedible fats and greases is on schedule to open at the end of next year.
This press release from WebWire.com says Dynamic Fuels, a joint venture of Tyson Foods and Syntroleum Corporation, has gotten final approval from its parent companies to build its first renewable synthetic fuels facility at Geismar, Louisiana:
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.
Construction of Dynamic Fuels initial refinery remains on schedule. Construction is expected to begin in October, and mechanical completion of the plant is expected by year end 2009. Prior to plant sanction, Dynamic Fuels placed orders for long lead time equipment, thereby locking in pricing and securing delivery times consistent with the overall project schedule.
“Approval to construct and fund the Geismar plant is a huge milestone for Dynamic Fuels, reflecting an outstanding effort by the Dynamic Fuels team to complete basic engineering and advance the project,” said Jeff Bigger, senior vice president of business development for Syntroleum. “With this approval we maintain our original project schedule and budget for the Geismar facility.”
The plant is expected to be produce about 75 million gallons of biodiesel a year when it is complete.