Texas-based energy firm ConocoPhillips and Tyson Foods have suspended operations of a joint biodiesel project following the halving of the federal tax credits that supported it, according to the Wall Street Journal. Under the partnership, formed in 2007, Tyson supplied waste fat from beef, pork and poultry to Conoco, which converted the material into biodiesel at its refinery in Borger, Texas.
"The project was no longer economically feasible and was put on hold last fall," says Gary Mickelson, a Tyson spokesman. "Tyson and ConocoPhillips continue to discuss ways to resume the project. However, until the full tax credit is reinstated, production will likely remain suspended."
The pair had originally planned to produce up to 175m gallons of biodiesel this year. The biodiesel was produced using thermal depolymerisation technology developed by Concoco.
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