Dynamic Fuels locks up strategic alliance with Mansfield Oil

By Bryan Sims | February 03, 2012

Dynamic Fuels LLC, a 50/50 joint venture between Tyson Foods Inc. and Syntroleum Corp., has entered into a strategic marketing alliance and commercial offtake and supply chain management agreements with Mansfield Oil Co., in which the two companies will jointly market Dynamic Fuels’ renewable diesel to the commercial fleet vehicle market.

The strategic marketing alliance is expected to provide Dynamic Fuels access to Mansfield Oil’s existing commercial accounts while expanding Mansfield Oil’s robust portfolio of renewable fuel products for its customers. Additionally, the supply chain management agreement allows Dynamic Fuels to outsource supply chain services to Mansfield Oil, including logistics management, customer service support, invoicing and billing services.

“We believe our relationship with Mansfield will allow Dynamic Fuels to provide a seamless supply of renewable diesel to fleet customers at prices comparable to ultra-low sulfur diesel, as well as a petroleum diesel backstop if necessary, to ensure reliable supply,” commented Ron Stinebaugh, senior vice president of Syntroleum. “Mansfield is the biggest fuel supply chain company in the industry, which gives Dynamic Fuels access to the largest, most recognizable fleet operators in the U.S.”

Dynamic Fuels utilizes Syntroleum’s proprietary Bio-Synfining process technology to produce renewable diesel, including naptha and liquefied petroleum gasoline (LPG), from nonfood-grade animal fats and greases, produced and procured by Tyson Foods, at its 75 MMgy production facility located in Geismar, La. In addition to renewable diesel, the plant is also capable of producing high-value specialty distillate chemicals that can be used in a wide variety of applications such as base oils, solvents and ink toner.

“Renewable diesel is a sustainable, ultra-clean burning, high-cetane fuel that reduces carbon emissions up to 70 percent and significantly reduces particulates and NOx when combusted in existing diesel engines,” Stinebaugh said.  

Mansfield Oil markets and distributes more than 2.5 billion gallons of fueling products annually to thousands of commercial customers across all 50 states and Canada.

“We’re impressed by Dynamic Fuels’ position as one of the leading renewable diesel producers in the U.S. and are confident they will remain the industry leader and a key partner for us,” said Doug Haugh, president of Mansfield Oil. “Through this partnership, we’re working to distribute renewable diesel directly to our fleet customers who are interested in increasing the renewable content of the fuels they consume.”

Prior to its offtake agreement with Mansfield Oil, Dynamic Fuels entered into an offtake agreement in December with the Defense Logistics Agency where the DLA will purchase 450,000 gallons of renewable diesel for the U.S. Navy’s demonstration of a "Green Strike Group” that’s slated to take place in the summer during the world’s largest international maritime exercise, the Rim of the Pacific Exercise. San Francisco-based Solayzme Inc. is helping Dynamic Fuels fulfill the contract, which the Navy and the USDA report is the single largest purchase of biofuel in government history.