GEISMAR – Today, Governor Bobby Jindal highlighted the importance of developing alternative sources of energy at the groundbreaking ceremony for the new Dynamic Fuels plant in Geismar, a joint venture between Tyson Foods (NYSE: TSN) and Syntroleum Corporation (NASDAQ: SYNM) that will produce high quality diesel and jet fuels from animal fats.

The new Dynamic Fuels facility will use Syntroleum’s Bio-Synfining Technology to produce high quality renewable fuels. Unlike the ethanol and bio-diesel industries, which use food ingredients like corn and soybean oil to produce fuel, the Dynamic Fuels project will primarily use non-food grade animal fats produced or procured by Tyson Foods, such as beef tallow, pork lard, chicken fat and greases.

Governor Bobby Jindal said, “This is the first fuel production facility of this kind in the entire United States, and we are very proud to have it right here in Louisiana. In addition to creating unique, renewable fuels, this plant will also create great high-paying and high-skilled jobs and a multi-million dollar payroll. Developing alternative sources of energy is a vital part of the future of our nation’s economy, and as such, this investment here in Louisiana will serve as a catalyst for greater business expansion and job creation.”

The Dynamic Fuels plant is currently scheduled to begin production in 2010, with a total capacity of 75 million gallons per year. It will employ 250 full-time workers at the peak of construction.  Once in operation, the facility will employ 45 people at an average annual salary of $85,000, and generate an annual payroll of more than $4 million, plus 20 full-time equivalent maintenance contractors.  

The projected cost of the new plant is $138 million.  Capital funding is expected to include $100 million in Gulf Opportunity Zone Bonds previously approved by the Louisiana State Bond Commission. The balance of $38 million is being funded through equity contributions in the form of cash commitments in equal proportions from Tyson and Syntroleum.

“We extend our sincere thanks to the state of Louisiana and Ascension Parish for their support of this important project,” said Jeffrey Bigger, director of the Dynamic Fuels LLC Management Committee.  “The project is on schedule and on budget, with mechanical completion planned for year end 2009.  We plan to begin fuel production in early 2010 and we believe our fuels will appeal to the operators of fleet vehicles and city buses who want to reduce emissions, as well as the military and commercial airlines seeking ultra-clean renewable jet fuel.”

Dynamic Fuels will convert fats, grease and oils supplied by Tyson Foods into fuel.  Low grade fats and greases will be the primary feedstocks because the cost is typically cheaper than vegetable oils and because it does not impact the human food supply.

The fuel produced by the venture will offer the same benefits of synthetic fuels derived from coal or natural gas, including substantial performance and environmental advantages over petroleum-based fuels.  Its benefits will include high combustion quality, cleaner emissions and lower engine operating temperature, making it suitable for all climates and for arctic and jet fuel applications.

The renewable synthetic diesel fuel produced by Dynamic Fuel will be sold in the U.S. within the existing diesel fuel distribution system.  Its ultra-clean properties are expected to make it a popular choice for conventional diesel producers to use as a blending fuel to help conventional diesel meet minimum government emission standards.

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.

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.