Dynamic Fuels LLC, the joint venture between Tyson Foods Inc. and Tulsa-based Syntroleum Corp., received has preliminary approval to issue $ 100 million of bonds to finance a fat-to-fuel plant.
Dynamic Fuels seeks permission to issue up to $135 million of the bonds to fund part of the plant in Geismar, La.
“The reason they only got $ 100 million is because we have way more demand than we have availability,” Whitman Kling, director of the state Bond Commission, told the Arkansas Democrat Gazette. The other $ 35 million of financing, if needed, won’t likely be available through tax-exempt bonds, Kling said.
The facility, expected to open in 2010 and produce 75 million gallons of fuel a year, will employ 45. It will use a process developed by Syntroleum to convert fats and greases produced by Tyson into high-grade diesel and jet fuels. The total project cost is about $150 million, to be shared equally between Tyson and Syntroleum.