DANBURY, Conn., January 22, 2009 — Praxair, Inc. (NYSE: PX) has been awarded a hydrogen supply contract from Dynamic Fuels, LLC, a joint venture between Tyson Foods, Inc. and Syntroleum Corporation. Dynamic Fuels will use hydrogen supplied by Praxair to produce renewable fuels from non-food-grade animal fats produced or procured by Tyson Foods, using Syntroleum’s bio-synfining™ technology. By using fats such as beef tallow, pork lard, chicken fat and used greases, high-quality diesel and jet fuels will be produced at Dynamic Fuels’ Geismar, La., production facility.
These fuels will offer the same benefits of synthetic fuels derived from coal or natural gas while providing substantial performance and environmental advantages over petroleum-based fuels. These benefits include higher cetane levels, which are a measure of combustion quality, and superior thermal stability, making it effective for advanced military applications. In addition, replacing traditional petroleum fuel with this renewable synthetic fuel substantially reduces total greenhouse gas emissions.
"We were attracted to the Geismar area because of the excellent industrial infrastructure, including hydrogen production capacity. We chose Praxair as our hydrogen supplier because of their long track record of reliably supplying high-quality gases and their understanding of our process needs,” said Jeff Bigger, director of the Dynamic Fuels, LLC Management Committee.
“Praxair is pleased to participate in the development of this next generation of alternative fuel using unique feedstocks,” said Anne Roby, vice president, South Region, for Praxair's North American Industrial Gases business. “This innovative project is an exciting supplement to our portfolio of environmental and productivity applications and will strengthen Praxair's already strong presence in Geismar and in the growing Mississippi River region,” Roby added.
Dynamic Fuels’ $138 million plant is currently scheduled to begin production in 2010, with a total capacity of 75 million gallons of fuel per year.
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2007 sales of $9.4 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair is a recognized leader in the commercialization of new technologies that bring productivity and environmental benefits to a diverse group of industries, including aerospace, chemicals, electronics, energy, food and beverage, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.
Susan Szita Gore