Syntroleum

Syntroleum Corporation was a United States technology and fuels company focused on converting hydrocarbon and renewable feedstocks into liquid transportation fuels. Its principal intellectual property was the Syntroleum Process, a proprietary gas-to-liquids platform based on Fischer–Tropsch chemistry. The process was designed to produce synthetic diesel, jet fuel and related products from feedstocks including natural gas, coal, biogas and biomass. The company was incorporated in 1984 by Kenneth Agee. It initially developed a technology-led business around synthetic fuels and sought to demonstrate that Fischer–Tropsch production could be adapted to commercially useful liquid fuels. Syntroleum became a publicly held company on Nasdaq in August 1998 through a merger with the publicly traded SLH Corporation. The listing provided access to capital for demonstration projects, technology development and commercial partnerships, although the company continued to face the substantial engineering and financing challenges associated with large-scale synthetic-fuel plants. A significant technical milestone came in March 2004, when Syntroleum reported shipping the first diesel produced at its gas-to-liquids demonstration plant at the Port of Catoosa near Tulsa, Oklahoma. The fuel was sent to the Massachusetts Institute of Technology for testing by the United States Department of Energy. The demonstration was intended to support validation of the Syntroleum Process and to show that gas-derived synthetic diesel could meet relevant performance requirements. Syntroleum also worked with the United States Air Force on synthetic aviation fuel. The Air Force had begun examining alternative fuel sources in the late 1990s, partly because of its large fuel demand and the strategic value of diversifying supply. On December 15, 2006, a B-52 aircraft completed a flight from Edwards Air Force Base using a 50–50 blend of conventional JP-8 and Syntroleum Fischer–Tropsch fuel. The approximately seven-hour test was reported as successful and formed part of a broader effort to qualify synthetic fuel blends for military aircraft. During the 2000s, Syntroleum broadened its commercial direction beyond conventional gas-to-liquids development. In June 2007, it announced a planned joint venture with Tyson Foods to produce fuels from animal fats and other rendered feedstocks. The venture, Dynamic Fuels LLC, was associated with a planned investment of approximately $150 million and targeted renewable diesel and jet-fuel markets. Its facility in Geismar, Louisiana, was completed in 2010 and was described as the first large-scale renewable-diesel biorefinery built in the United States. The project represented a strategic shift toward renewable fuels and away from an exclusive emphasis on natural-gas-based synthetic fuels. The change in direction was accompanied by corporate restructuring. Kenneth Agee left Syntroleum and acquired its Tulsa research and laboratory facilities, subsequently establishing Emerging Fuels Technology with former Syntroleum personnel. Emerging Fuels Technology continued work on gas-to-liquids and fuel-upgrading technologies, but it was separate from Syntroleum. In December 2013, Syntroleum announced that its operations would be sold to Renewable Energy Group, an Iowa-based producer and developer of renewable fuels. The transaction closed on June 4, 2014. REG also acquired Tyson Foods' interest in Dynamic Fuels. Syntroleum therefore ceased operating as an independent public company and its technology and renewable-fuel activities became part of REG's broader platform. Chevron acquired Renewable Energy Group on February 28, 2022; the acquired business is now associated with Chevron Renewable Energy Group. Syntroleum is consequently best understood as a defunct corporate brand and former technology company rather than an independent current fuel marketer.

Syntroleum was incorporated in 1984 by Kenneth Agee as a developer of synthetic-fuel technology. Its core platform, the Syntroleum Process, applied Fischer–Tropsch conversion to produce liquid fuels from feedstocks such as natural gas, coal, biogas and biomass. The company pursued gas-to-liquids production as a way to transform gaseous or otherwise underused carbon resources into transportable diesel and aviation fuels. In August 1998, Syntroleum became publicly held through a merger with SLH Corporation, a company already traded on Nasdaq. Public-market access supported further technology development and demonstration work. The company constructed a gas-to-liquids demonstration plant at the Port of Catoosa near Tulsa, Oklahoma. In March 2004, it reported shipping the first diesel from that plant to the Massachusetts Institute of Technology for testing by the United States Department of Energy. Syntroleum's technology attracted military interest because synthetic fuels could potentially diversify supply and be made compatible with existing fuel systems after suitable testing. The United States Air Force had been investigating alternative fuel sources since 1999. On December 15, 2006, a B-52 flew from Edwards Air Force Base using a 50–50 mixture of JP-8 and Syntroleum Fischer–Tropsch fuel. The seven-hour test was regarded as successful and supported the Air Force's effort to qualify synthetic blends for its B-52 fleet and potentially other aircraft. The company later moved toward renewable fuels. In June 2007, Syntroleum and Tyson Foods announced a proposed $150 million joint venture, Dynamic Fuels LLC, to make fuels from animal fats and related feedstocks. The Geismar, Louisiana, plant was completed in 2010 and was identified as the first large-scale renewable-diesel biorefinery constructed in the United States. The venture broadened Syntroleum's business from gas-based synthetic fuels into renewable diesel and renewable aviation-fuel markets. This strategic transition coincided with restructuring. Kenneth Agee departed Syntroleum and acquired its Tulsa research and laboratory facilities. He subsequently founded Emerging Fuels Technology, which retained a focus on gas-to-liquids and upgrading technologies and employed several former Syntroleum staff members. In December 2013, Syntroleum announced that its operations would be sold to Renewable Energy Group. The sale closed on June 4, 2014, and REG also bought Tyson Foods' interest in Dynamic Fuels. Syntroleum consequently stopped operating as an independent public company. Renewable Energy Group was acquired by Chevron on February 28, 2022, and the business is now associated with Chevron Renewable Energy Group. The Syntroleum name therefore represents a former independent synthetic-fuels company and technology platform whose activities were absorbed through successive acquisitions.

• 2022

  REG acquired by Chevron

  [1]Syntroleumen.wikipedia.org

  Chevron completes its acquisition of Renewable Energy Group, the corporate successor owner of Syntroleum-related operations.

• 2014

  Acquired by Renewable Energy Group

  [1]Syntroleumen.wikipedia.org

  REG completes its acquisition of Syntroleum's operations on June 4.

• 2010

  Geismar renewable-diesel facility completed

  [1]Syntroleumen.wikipedia.org

  Dynamic Fuels completes its Louisiana facility, described as the first large-scale renewable-diesel biorefinery in the United States.

• 2007

  Dynamic Fuels joint venture announced

  [1]Syntroleumen.wikipedia.org

  Syntroleum and Tyson Foods announce a joint venture to produce fuels from animal fats and related renewable feedstocks.

• 2006

  B-52 synthetic-fuel flight test

  [1]Syntroleumen.wikipedia.org

  A B-52 completes a flight using a 50–50 blend of JP-8 and Syntroleum Fischer–Tropsch fuel.

• 2004

  First demonstration-plant diesel shipment

  [1]Syntroleumen.wikipedia.org

  Diesel from the Port of Catoosa gas-to-liquids demonstration plant is sent to MIT for Department of Energy testing.

• 1998

  Becomes publicly held

  [1]Syntroleumen.wikipedia.org

  Syntroleum becomes a public company through its merger with Nasdaq-listed SLH Corporation.

• 1984

  Syntroleum is incorporated

  [1]Syntroleumen.wikipedia.org

  Kenneth Agee incorporates Syntroleum to develop and commercialize synthetic-fuels technology.

A technology-driven synthetic-fuels developer combining Fischer–Tropsch gas-to-liquids engineering with later renewable-fuels production and military fuel qualification.

• Gas-to-liquids technology · 1984

  Syntroleum Process

  Syntroleum's principal technology was a proprietary Fischer–Tropsch process for converting synthesis gas into liquid hydrocarbons. Depending on the configuration, synthesis gas could be derived from natural gas, coal, biogas or biomass. The resulting products were intended for applications including diesel and aviation fuel. The process was demonstrated at the Port of Catoosa near Tulsa and formed the technical foundation of the company's original business.

• Transportation fuel · 2004

  Synthetic diesel

  Syntroleum developed and demonstrated Fischer–Tropsch synthetic diesel made through its gas-to-liquids process. A shipment from the company's demonstration plant was provided to MIT for testing by the Department of Energy in 2004. The fuel represented the company's effort to validate commercially useful liquid products made from gaseous feedstocks.

• Aviation fuel · 2006

  Synthetic jet fuel

  Syntroleum produced Fischer–Tropsch aviation fuel for testing with the United States Air Force. Its fuel was used in a 50–50 JP-8 blend during a B-52 flight test in 2006. The program was aimed at evaluating compatibility and supporting future qualification of synthetic fuel blends for military aircraft.

• Renewable fuel · 2010

  Dynamic Fuels renewable diesel

  Produced through the Dynamic Fuels joint venture with Tyson Foods, this renewable diesel used animal fats and related rendered feedstocks rather than petroleum. The Geismar, Louisiana, facility was completed in 2010 and represented Syntroleum's move into large-scale renewable-fuel manufacturing.

• 2007Dynamic Fuels renewable-fuels venture

  United States · Renewable diesel · Aviation fuel

  Syntroleum and Tyson Foods formed a venture to manufacture renewable diesel and jet fuel from animal fats and related feedstocks.

  Outcome. The Geismar, Louisiana, plant was completed in 2010 and later became part of Renewable Energy Group's assets.

  Source
• 2006United States Air Force synthetic-fuel flight-test program

  United States military aviation

  Syntroleum worked with the Air Force to test Fischer–Tropsch fuel in military aircraft. A B-52 flew with a 50–50 blend of JP-8 and Syntroleum fuel in December 2006.

  Outcome. The flight test was reported as successful and contributed to the Air Force's fuel-qualification effort.

  Source

• 2022

  Chevron acquisition of Renewable Energy GroupM&A

  Background

  Renewable Energy Group had owned Syntroleum's operations since 2014.

  Action taken

  Chevron acquired Renewable Energy Group on February 28, 2022.

  Aftermath

  The former REG business became associated with Chevron Renewable Energy Group, placing Syntroleum-related assets within Chevron's renewable-energy portfolio.

  Source

• 2013

  Sale of Syntroleum operations to Renewable Energy GroupM&A

  Background

  Syntroleum's synthetic-fuels and renewable-fuels activities were being consolidated as the company transitioned away from operating independently.

  Action taken

  Syntroleum announced the sale of its operations to Renewable Energy Group; the transaction closed on June 4, 2014.

  Aftermath

  Syntroleum ceased to operate as an independent public company, while REG also acquired Tyson Foods' interest in Dynamic Fuels.

  Source

• 2007

  Shift toward renewable fuelsStrategy

  Background

  Syntroleum had developed its identity around gas-to-liquids technology but saw an opportunity to apply its capabilities to renewable feedstocks and growing alternative-fuel markets.

  Action taken

  The company partnered with Tyson Foods to establish Dynamic Fuels and develop a large renewable-diesel and jet-fuel facility.

  Aftermath

  The venture became a major change in corporate direction and was followed by restructuring and the eventual sale of Syntroleum's operations to Renewable Energy Group.

  Planned joint-venture plant investment. $150 million planned investment (2007 announcement)

  Source

1. 1Syntroleumen.wikipedia.org