Dynamic Fuels Strikes Deal With Mansfield Oil
by February 1, 2012 3:11 pm 102 views
Dynamic Fuels — Tyson Foods’ subsidiary and joint venture with Tulsa-based Syntroleum Corp. — confirmed an agreement with Mansfield Oil Company to jointly market and distribute renewable diesel for use in commercial fleet vehicles.
The Dynamic Fuels plant in Geismar, La. was built in 2009 costing the partners about $170 million to construct. The plant has the capacity to produce 75 million gallons of renewable diesel annually.
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, according to Ron Stinebaugh, executive with Syntroleum.
“Renewable diesel is a sustainable, ultra clean burning, high cetane fuel that reduces carbon emissions up to 70%, Stinebaugh noted in the release. “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.”
This new agreement helps 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 more than 2.5 billion gallons of fuel products per year to thousands of commercial customers across all 50 states and Canada.
Doug Haugh, president of Mansfield Oil Company said, “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.”
Michael Tilley with our content partner, The City Wire, is the author of this report. He can be reached by email at [email protected].