Louisiana approves tax-free, low-interest bond for Tyson-Syntroleum synthetic diesel from fats and corn oil
In Louisiana, the state Bond Commission approved a $100 million bond issue in support of the Dynamic Fuels project, a partnership between Tyson Foods and Syntroleum to produce synthetic diesel fuel from meat fats, corn oil and other substances into “synthetic diesel” fuel. The 75 Mgy project will commence operation in January 2010. Funding for the project comes from the Gulf Opportunity Zone tax-free, low interest bonds earmarked for economic development in areas affected by the 2005 hurricanes.
The use of corn oil for a Tyson plant is an unusual choice for the company, given that the company’s chief executive’s statements on the use of corn for biofules. “If left unaddressed, the bigger long-term issue will be the availability of U.S. and global grain for protein and other foods,” says Dick Bond, president and chief executive, Tyson Foods. “We fully support efforts toward renewable energy; however, as the food-vs.-fuel debate unfolds, we must carefully consider the negative and unintended consequences of overusing grains.”
Bonds self-described “rant” against corn-based biofuels can be seen here.
“Diverting corn to make ethanol doesn’t make sense,” said Bond on a conference call with analysts in April as the company reported a quarterly loss.
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