Two US Giants Announce Biodiesel Partnership

ConocoPhillips and Tyson Foods Inc have announced that they will work together producing biodiesel from animal fat.

Beef, pork and chicken fat from Tyson rendering plants will be processed at ConocoPhillips refineries, creating fuel for transportation. The companies believe that their project could eventually produce 175 million gallons per year of biodiesel.

ConocoPhillips, America’s third-largest oil company, will start to prepare several refineries to process the fuel while Tyson, the world's largest chicken, beef and pork processor, will make capital improvements this summer at some of its rendering plants so it can start pre-processing animal fat.

"We are firmly committed to leveraging our leadership position in the food industry to identify and commercialise renewable energy opportunities," said Tyson Chief Executive Richard Bond.

Only a very small percentage of the biodiesel currently produced in the United States comes from animal fat – the main feedstock currently used to make biodiesel is soybean oil.The companies said the fats will be processed with hydrocarbon feedstocks to produce a high-quality diesel fuel that meets all federal standards for ultra-low-sulphur diesel.

ConocoPhillips already produces biodiesel from soybean at its Whitegate refinery in Cork, Ireland.

Tyson, which formed a renewable energy unit late last year, has said it has access to about 2.3 billion pounds per year of animal fat – the equivalent of 20,000 barrels a day of feedstock that can be turned into renewable fuel.