Dynamic Fuels and Mansfield Oil Company Market Advanced Biofuels to Transportation Industry
Gainesville, GA – January 31, 2012 – Dynamic Fuels, LLC, operator of the first commercial advanced biofuels plant in the United States, has entered into strategic marketing alliance, commercial off-take and supply chain management agreements with Mansfield Oil Company ("Mansfield") to efficiently distribute synthetic renewable diesel to the commercial fleet vehicle market.
Dynamic Fuels is a 50/50 venture of Tyson Foods, Inc. (NYSE / TSN) and Syntroleum Corporation (NASDAQ / SYNM) that produces next-generation renewable and synthetic fuels from animal fats and greases. The company’s Geismar, Louisiana, plant has the design capacity to produce 75 million gallons of renewable diesel, naphtha and LPG per year, of which the primary product is ASTM D975 renewable diesel. Because of its molecular properties (it’s a pure hydrocarbon), renewable diesel is a “drop in” fuel that can replace 100% of petroleum diesel in a diesel engine without engine modification.
“Renewable diesel is a sustainable, ultra clean burning, high cetane fuel that reduces carbon emissions up to 70% and significantly reduces particulates and NOx when combusted in existing diesel engines,” stated Ron Stinebaugh, senior vice president of Syntroleum Corporation. "We believe our relationship with Mansfield will allow Dynamic Fuels to provide a seamless supply of renewable diesel to fleet customers at prices comparable to ultra-low sulphur diesel, as well as a petroleum diesel backstop if necessary, to ensure reliable supply. Mansfield is the biggest fuel supply chain company in the industry, which gives Dynamic Fuels access to the largest, most recognizable fleet operators in the United States.”
Under the strategic marketing alliance, Dynamic Fuels and Mansfield will jointly market renewable diesel. This is expected to provide Dynamic Fuels access to Mansfield’s existing commercial accounts while expanding Mansfield’s large portfolio of renewable fuel products for its customers. In addition, company officials believe the commercial off-take agreement will also help ensure Dynamic Fuels has immediate access to fleet markets for its renewable diesel. The supply chain management agreement allows Dynamic Fuels to outsource supply chain services to Mansfield, including logistics management, customer service support, invoicing and billing services.
Mansfield markets and distributes over 2.5 billion gallons of fueling products per year to thousands of commercial customers across all 50 states and Canada.
"We’re impressed by Dynamic Fuels’ position as one of the leading renewable diesel producers in the United States and are confident they will remain the industry leader and a key partner for us," said Doug Haugh, president of Mansfield Oil Company. "Through this partnership, we’re working to distribute renewable diesel directly to our fleet customers who are interested in increasing the renewable content of the fuels they consume."
About Mansfield Oil Company
Ranked as one of the Top 50 privately held companies in America by Forbes magazine and a multiple category finalist in the 2009, 2010 and 2011 Platts Global Energy Awards, Mansfield defines the next generation transportation fuels company. Founded in 1957, the company has achieved double-digit growth for three decades by focusing on optimizing and controlling fuel-related costs for its customers using innovation, technology and high touch service. For more information, visit www.mansfieldoil.com
About Tyson Foods
Tyson Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is one of the world's largest processors and marketers 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 services to customers throughout the United States and more than 130 countries. The company has approximately 115,000 Team Members employed at more than 400 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.
Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining(R) technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock. The 50/50 venture -- known as Dynamic Fuels -- was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the Company's web site at www.syntroleum.com
Certain information contained in this press release may constitute forward-looking statements, such as statements relating to expected market access and production capabilities. These forward-looking statements are subject to a number of factors and uncertainties which could cause actual results and experiences to differ materially from the anticipated results and expectations expressed in such forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Among the factors that may cause actual results and experiences to differ from anticipated results and expectations expressed in such forward-looking statements are the following: (i) the effect of, or changes in, general economic conditions; (ii) fluctuations in the cost and availability of inputs and raw materials and energy; (iii) market conditions for finished products, including competition from other suppliers, supply and pricing of competing and/or alternative products; (iv) operation of production facilities and operating efficiencies of the facilities; (v) purchasers' fuel preferences; (vi) significant marketing plan changes by large customers; (vii) adverse results from litigation; and (viii) compliance with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws, agricultural laws and occupational, health and safety laws.