Biodiesel: ConocoPhillips and Tyson

Energy giant ConocoPhillips (COP) and food producer Tyson (TSN) are cooperating on a biodiesel manufacturing process that converts animal fats into fuel. A fact sheet (replete with pretty pictures) produced by the companies can be found here.

Partnerships of this type that produce closed loop manufacturing and distribution systems will undoubtedly be on the rise in the coming years. McDonald's (yes, that McDonald's) has supplied used fryer oil to a pilot biodiesel conversion program in Brazil since 2004. No word on potential US applications at this point, but consider the following: there are about 12,000 McD franchises in the US, producing an average of about 2,500 gallons of waste fry grease annually. That's 30 million gallons of potential fuel. Ergo, I'm assuming a partnership similar to CP-Tyson is inevitable.

One option may be to consider companies with stagnant market share in existing categories or looking to develop new revenue streams with long term potential to placate shareholders...