Syntroleum reports $9.6M loss for 2010, bullish for 2011
In Oklahoma, Syntroleum reported a $9.6 million loss for fiscal 2010 in its 10K SEC form, with revenues having declined $19 million compared to 2009. In a teleconference to discuss Syntroleum’s report, Gary Roth, Syntroleum’s President and CEO stated that at the Dynamic Fuels plant in Geismar, Louisiana, mechanical reliability issues developed with a seals on a critical pump and a valve on the hydrogen compressor.
Fixes have been made, but design work for an improved valve on the compressor is ongoing. Roth reported their plant is now operating at 75 MGy, though they did not state the exact amounts of diesel, naphtha and LPG the plant was producing.
Ron Stinebaugh, Senior Vice President of Finance, explains, “U.S. refiners must acquire at least 800 millions or the equivalent number of RINS in 2011.”
Overall, the tenor was that Syntroleum’s product is a renewable diesel, not a biodiesel which gives it several advantages, including that refiners can blend it directly, as opposed to splash blending at the truck rack, and that its RIN rating of 1.7 vs 1.5 for biodiesel gives it a 13% higher value to any obligated party.
Category: Fuels
