Mansfield Oil Inks ‘Renewable-Diesel’ Offtake Deal with Dynamic Fuels
The Syntroleum/Tyson Foods “Dynamic Fuels” renewable diesel joint venture announced February 1 that it signed a “strategic-marketing alliance” with U.S. based fuel wholesaler Mansfield Oil, targeting commercial fleets.
The Dynamic Fuels Geismar, La., plant has a design capacity to produce 75 million gallons per year of all-hydrocarbon renewable diesel, naphtha and liquefied petroleum gas per year, of which the primary product is ASTM D975 diesel fuel (unlike fatty acid methyl ester biodiesel).
“Because of its molecular properties, renewable diesel is a ‘drop in’ fuel that can replace 100% of petroleum diesel in a diesel engine without engine modification,” according to Dynamic Fuels.
Ron Stinebaugh, senior vice president of Syntroleum, added that “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. 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 United States.”
Under the deal, “Dynamic Fuels and Mansfield will jointly market renewable diesel. This is expected to provide Dynamic Fuels access to Mansfield’s existing commercial accounts while expanding Mansfield’s large portfolio of renewable fuel products for its customers.
“The commercial off-take agreement will also help ensure Dynamic Fuels has immediate access to fleet markets for its renewable diesel. The supply chain management agreement allows Dynamic Fuels to outsource supply chain services to Mansfield, including logistics management, customer service support, invoicing and billing services.”
Doug Haugh, president of Mansfield Oil, added that “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.”
Asked for more details about the deal, Mansfield spokesperson Olivia Wall told us the following:
Diesel Fuel News: What does Mansfield see as the “marketing niche” for this renewable diesel fuel, for your fleet customers? Is it about price? About “green” image? Or what exactly?
Wall: Mansfield has determined that nearly 200 sites within a 300-mile radius of Dynamic Fuel’s Louisiana plant are strong candidates for renewable diesel. Our customers are looking for options in transportation fuels that lower emissions and help with their green initiatives but also improve efficiency and lower maintenance costs. Renewable diesel is a great example of a next-generation fuel that can be added to a portfolio of transportation fuels to achieve the above goals.
Diesel Fuel News: What is meant by the phrase, “prices comparable to ultra-low sulfur diesel?” Does this mean that the renewable diesel fuel will be more expensive than ordinary diesel fuel, or less expensive, or what exactly?
Wall: We’re supplying fleets with renewable diesel at the same price as ULSD, for a 70-cetane product that cuts emissions of particulates and nitrogen oxides by over 50%, meaning they’ll regenerate their diesel particulate filter far less often and use less DEF [diesel-emissions fluid, better known as urea] while reducing their carbon emissions by 70%.
Offtake Deal Could Expand
Asked for more details, Syntroleum spokesperson Amanda Burns told Diesel Fuel News on February 2 that under the deal, Mansfield would buy varying amounts of the output from the Dynamic Fuels plant “at our discretion.”
“If our plant is down, [then] we don’t owe them any fuel, but they have committed to take a large portion of available fuel every month and could increase to 100%, if we determine that is the best off take relationship for us,” Burns said. “Right now, they have committed to take about 50%, due to the fact we have the remaining 50% already committed.”
– Jack Peckham
