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A groundbreaking ceremony was held Monday for the Dynamic Fuels plant in Geismar, La., a joint venture of Tyson Foods Inc. of Springdale and Syntroleum Corp., company officials announced.

The plant, located near Baton Rouge, will produce diesel and jet fuels from animal fats and greases and is expected to cost $138 million to construct.

Louisiana Governor Bobby Jindal and Tyson and Syntroleum officials were on hand for the ceremony.

The new facility will use Syntroleum's Bio-Synfining Technology to produce high-quality renewable fuels. Unlike the ethanol and biodiesel industries, which use food ingredients such as corn and soybean oil to produce fuel, officials say the Dynamic Fuels project will primarily use non-food grade animal fats produced or procured by Tyson Foods, such as beef tallow, pork lard, chicken fat and greases.

"There is currently no other fuel production facility like this in the U.S., so we're very excited about building the first one,'' Jeffrey Bigger, director of the Dynamic Fuels LLC Management Committee, said in a news release. "We believe this location offers the infrastructure we will need to succeed, including access to ports and a high-quality workforce. In addition to creating unique, renewable fuels, this venture will also create well-compensated, highly-skilled jobs and a multi-million dollar payroll.''

The Dynamic Fuels plant is scheduled to begin production in 2010 with a capacity of 75 million gallons a year. It will employ 250 full-time workers at the peak of construction. Once in operation, the facility will employ 45 people and generate an annual payroll of more than $4 million, plus 20 full-time equivalent maintenance contractors.

Capital funding is expected to include $100 million in Gulf Opportunity Zone Bonds previously approved by the Louisiana State Bond Commission. The remaining $38 million is being funded through equity contributions in the form of cash commitments in equal proportions from Tyson and Syntroleum.

Bigger said the project is on schedule and on budget, with mechanical completion planned for year end 2009.

"We plan to begin fuel production in early 2010 and we believe our fuels will appeal to the operators of fleet vehicles and city buses who want to reduce emissions, as well as the military and commercial airlines seeking ultra-clean renewable jet fuel," he said.

Low grade fats and greases from Tyson will be the primary feedstocks because the cost is typically cheaper than vegetable oils and because it does not impact the human food supply, officials said. The fuel will be sold in the U.S. within the existing diesel fuel distribution system.

Read more on the Tyson-Syntroleum venture:

Tyson Foods, Syntroleum Reach Final Deal on Louisiana Synthetic Fuel Plant

Tyson Foods Fuel Project Gets Green Light in Louisiana

Tyson Foods to Produce Synthetic Fuel in Joint Venture