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ConocoPhillips, Tyson To Make Fuel From Fat

HOUSTON (AP) _ Oil company ConocoPhillips said Monday it will partner with meat producer Tyson Foods Inc. to make renewable diesel fuel. The two companies, each among the largest in their industries, said they will use beef, pork and poultry byproduct fat to create the transportation fuel.

ConocoPhillips said Tyson will make capital improvements this summer so that it can start pre-processing animal fat from some of its North American rendering facilities later in the year. Meanwhile, ConocoPhillips said it will make capital expenditures so that it can produce the fuel in several of its refineries.

To make the fuel, the animal fats will be processed with hydrocarbon feedstocks to improve its ``storage stability and handling characteristics,'' ConocoPhillips said.

The fuel will meet all federal standards for ultra-low-sulfur diesel, the company said.

ConocoPhillips added that the two companies plan to make as much as 175 million gallons per year of renewable diesel.

Production is slated to begin late this year. Tyson said it expects the project to add between 4 cents and 16 cents per share in additional annual earnings.
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