Dynamic Fuels, Mansfield Oil inks deal with Norfolk Southern

By Bryan Sims | February 16, 2012

Dynamic Fuels LLC, a 50/50 joint venture between Tyson Foods Inc. and Syntroleum Corp., and Mansfield Oil Co. have signed an agreement to supply renewable diesel to Norfolk Southern Corp., one of the country’s largest transporters of coal and industrial products. Since January, Norfolk Southern has been using renewable diesel produced by Dynamic Fuels at its rail yard located in Meridian, Miss.

“Our locomotive engines are completely compatible with the pure renewable diesel provided by Dynamic Fuels and Mansfield,” said Gerhard Thelen, vice president operations planning and support for Norfolk Southern. “Together, they have provided seamless integration of renewable diesel supply into our Meridian rail yard.”

Earlier this month, Dynamic Fuels signed commercial offtake and strategic alliance agreements with Mansfield Oil to market and distribute its renewable diesel to fleet customers. According to Ron Stinebaugh, senior vice president of Syntroleum, the contract with Norfolk Southern is the first manifestation of Dynamic Fuels’ partnership with Mansfield Oil.

“We look forward to working with Norfolk Southern to lower their emissions and increase the renewable content of the fuel they burn,” Stinebaugh stated. “Renewable diesel is a sustainable, ultraclean-burning, high-cetane fuel that reduces carbon emissions and significantly reduces particulates and NOx when combusted in existing diesel engines. Supplying a prestigious company like Norfolk Southern validates our belief that customers are looking for renewable options that increase sustainability and lower emissions without sacrificing fuel quality.”

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.

Norfolk Southern’s subsidiary, Norfolk Southern Railway, operates approximately 20,000 route miles in 22 states and the District of Columbia, serves major container port in the eastern U.S. and provides efficient connections to other rail carriers.