LITTLE ROCK — A producer of renewable diesel backed by Tyson Foods Inc. of Springdale said Wednesday that a deal with the Mansfield Oil Co. will increase its fuel sales to businesses with vehicle fleets.
Dynamic Fuels said about 4 million gallons, about half of its current production volume, will be supplied to Mansfield of Gainesville, Ga.
Dynamic Fuels, which is a joint venture between Tyson and Syntroleum Corp. of Tulsa, has made the renewable diesel — using animal byproducts supplied by Tyson — since the fuel maker began operating its plant in October 2010.
Amanda Burns of Dynamic Fuels said Wednesday that demand for renewable diesel will be helped in part by the 2010 passage of the U.S. Environmental Protection Agency’s second version of the Renewable Fuel Standards program.
Under the program, 9 percent, or 15 billion gallons, of all fuel used in the country in 2012 will come from renewable sources, according to EPA data. Of that percentage, 1 percent, or 2 billion gallons, is designated for renewable diesel.
Tailpipe emissions are much lower with renewable fuels, Burns said. “About a 70 percent reduction in greenhouse houses per gallon compared with petroleum.”
Fuel experts say the price of renewable diesel is similar to regular diesel.
Olivia Wall, a Mansfield spokesman, said the company already sold its first shipment of renewable diesel and that it planned to announce the name of the customer Monday.
The agreement gives Dynamic Fuels access to “a large and diverse customer base,” Wall said, adding that Dynamic Fuels represented Mansfield’s first foray into offering a renewable diesel product.
Mansfield customers include trash haulers, construction companies and package deliverers. The business markets and distributes more than 2.5 billion gallons of fueling products a year to customers across all 50 states and Canada, a news release said.
Mansfield and Dynamic Fuels said they will jointly market renewable diesel.
Dynamic Fuels, created in 2007, operates a 75 million-gallon capacity refinery in Geismar, La. The company said in December that it received purchase contract from the U.S. Navy and during the summer Dynamic Fuels began testing a 20 percent blend in aircraft used in the commercial airlines industry.
Mark Jenner, an alternativeenergy consultant and owner of Biomass Rules of Greeneville, Ill., said it takes a lot of time and resources to get an alternative-energy project off the ground.
“Tyson would not be where it’s at in the project if it didn’t think it could make money at it,” Jenner said.
Using animal byproducts to make fuel is a better alternative than sending waste elsewhere, he said.
Business, Pages 26 on 02/02/2012