SPRINGDALE, Ark. --- Tyson Foods and ConocoPhillips have formed a strategic alliance to use beef, pork and poultry by-product fat to produce biodiesel fuel. Tyson will make capital improvements this summer in order to begin pre-processing animal fat from some of its North American rendering facilities later in the year. ConocoPhillips also will begin the necessary capital expenditures to enable it to produce the fuel in several of its refineries. The finished product will be renewable diesel fuel mixtures that meet all federal standards for ultra-low-sulfur diesel. Production is expected to ramp up over time to as much as 175 million gallons per year of renewable diesel, the companies said. "This strategic alliance is a big win for the entire agricultural sector because it paves the way for greater participation of fats and oils in renewable fuels," said Richard L. Bond, Tyson president and CEO. The animal fats will be processed with hydrocarbon feedstocks to produce a diesel fuel that meets all federal standards for ultra-low-sulfur diesel. The addition of animal fat also improves the fuel's ignition properties, while the processing step improves its storage stability and handling characteristics.

Originally posted on Fleet Financials