Tyson plans joint synthetic fuel project

NEW YORK (CNNMoney.com) -- The world's top U.S. meat producer Tyson Foods Inc. said Monday it would join forces with Syntroleum Corp. to produce synthetic fuels to help reduce greenhouse gases.

Tyson (Charts, Fortune 500) said the $150 million project with the Tulsa-based synthetic fuel technology company would target renewable diesel, jet, and military fuel markets, with its first facility producing about 75 million gallons of fuel a year.

The companies said the fuel will offer the same benefits of synthetic fuels made from coal or natural gas and will provide additional benefits over petroleum-based fuels. It will also be compatible with existing pipelines, storage facilities and other infrastructures.

Unblended fuel will be able to be used in diesel engines without any required modifications and also can be upgraded into ultra-clean, high quality synthetic jet fuel.

Dynamic Fuels will aid Syntroleum's (Charts) proprietary work done in producing synthetic fuel and developing fuel standards.

The first facility to produce the synthetic fuel is expected to begin in 2008.

Tyson said it produces large volumes of various grades of animal fats, such as beef tallow, pork lard, chicken fat, and greases which can be used to make renewable feedstock for this venture.