Praxair, Inc. is playing a part in next generation fuel production after signing a contract to supply hydrogen to Dynamic Fuels, LLC.

The hydrogen supplied by Praxair will be used by Dynamic Fuels, LLC, a joint venture between Tyson Foods, Inc. and Syntroleum Corporation, to produce renewable fuels from non-food-grade animal fats produced or procured by Tyson Foods, using Syntroleum’s bio-synfining™ technology.

By using fats such as beef tallow, pork lard, chicken fat and used greases, high-quality diesel and jet fuels will be produced at Dynamic Fuels’ Geismar, Louisiana production facility.

According to Praxair, these fuels will offer the same benefits of synthetic fuels derived from coal or natural gas, while providing substantial performance and environmental advantages over petroleum-based fuels.

Replacing traditional petroleum fuel with this renewable synthetic fuel substantially reduces total greenhouse gas emissions.

Jeff Bigger, Director of the Dynamic Fuels, LLC Management Committee commented on the new contract saying, “We chose Praxair as our hydrogen supplier because of their long track record of reliably supplying high-quality gases, and their understanding of our process needs.”

Anne Roby, Vice President, South Region, for Praxair’s North American Industrial Gases Business was also positive about the contract, she said, “Praxair is pleased to participate in the development of this next generation of alternative fuel using unique feedstocks.”

She added, “This innovative project is an exciting supplement to our portfolio of environmental and productivity applications.”

Dynamic Fuels’ $138m plant is scheduled to begin production in 2010, with a total capacity of 75m gallons of fuel per year.