Tyson Venture Reaches Agreement with Mansfield Oil

Northwest Arkansas

by Talk Business & Politics ([email protected]) February 5, 2012 10:31 am 103 views 

Dynamic Fuels LLC has entered into strategic marketing alliance, commercial off-take and supply chain management agreements with Mansfield Oil Co. to distribute synthetic renewable diesel to the commercial fleet vehicle market, according to a news release issued Tuesday.

 Dynamic Fuels is a 50-50 venture between Tyson Foods Inc. and Syntroleum Corp. The result is the production of renewable and synthetic fuels from animal fats and greases.

According to the release, Dynamic Fuels’ Geismar, La., plant has the design capacity to produce 75 million gallons of products, including ASTM D975 renewable diesel, per year.

Because of its molecular properties, renewable diesel is a “drop in” fuel that can replace 100 percent of petroleum diesel in a diesel engine without engine modification, the release stated.

“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,” Syntroleum senior vice president Ron Stinebaugh said in the release. “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.”

Also according to the release:

• The strategic marketing alliance will allow Dynamic Fuels and Mansfield to jointly market renewable diesel, which could provide Dynamic Fuels access to Mansfield’s existing commercial accounts while expanding Mansfield’s large portfolio of renewable fuel products for its customers.

• Company officials believe the commercial off-take agreement will 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.