Wednesday, April 18, 2007

ConocoPhillips and Tyson to make diesel fuel for US

Houston: Oil major ConocoPhillips and Tyson Foods, the world's largest meat producer, said they are teaming up to produce and market diesel fuel for US vehicles using beef, pork and poultry fat.

They said they have collaborated over the past year on ways to combine Tyson's expertise in protein chemistry and production with ConocoPhillips' processing and marketing knowledge to introduce a renewable diesel fuel with lower carbon emissions than conventional fuels.

But some renewable-fuel advocates say Conoco-Phillips will be able to take unfair advantage of a tax credit designed to create new refining capacity for clean-burning fuels, even though they will be using existing refineries.

Major investment

ConocoPhillips planned to spend about $100 million over several years to produce the fuel, chairman and chief executive Jim Mulva said at a news conference. It hopes to introduce the fuel at gas stations in the US Midwest in the fourth quarter of this year.

Tyson said it will begin preprocessing animal fat at some of its North American rendering plants this summer. Tyson President and CEO Richard Bond said his company's potential investment would likely be less than that of ConocoPhillips.

The oil company and Tyson, based in Springdale, Arkansas, said the finished product will be renewable diesel fuel mixtures that meet all federal standards for ultra-low-sulfur diesel.


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