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Syntroleum Signs Contract to Deliver Renewable Alternative Jet Fuel to U.S. Department of Defense

Syntroleum Corporation, a leader in synthetic fuels technologies, announced today that it has signed a contract to provide synthetic jet fuel made from renewable feedstock to the US Department of Defense (DOD). Syntroleum will provide a first-of-its-kind renewable fuel for evaluation by the DOD as part of a larger program aimed at long-term prospects for the domestic manufacture and supply of synthetic aviation fuels.

Under terms of the contract, Syntroleum will provide 500 gallons of ultra-clean renewable synthetic jet fuel produced entirely from fats supplied by Tyson Foods, Inc., using the company's recently announced Biofining technology. The fuel will be used for research development and performance testing in military turbine applications as part of the DOD's Assured Fuels Program, aimed at evaluating the possibility of utilizing renewable alternative jet fuel made from bio feedstocks. The U.S. Air Force has expressed its desire to source 50 percent of its fuel needs from domestic alternative sources by 2016, and plans to certify its entire fleet of aircraft for alternative fuel use by 2010.

In 2006, Syntroleum supplied 100,000 gallons of synthetic Fischer-Tropsch (FT) jet fuel to the DOD, which used the fuel in a 50/50 blend with conventional jet fuel in several test flights of a B-52 bomber. The synthetic fuel blend was used to successfully power all eight engines of the aircraft in a final test flight on December 15, 2006. Research and testing by the military on Syntroleum's FT fuels have shown superior performance characteristics compared to aviation fuels produced by refining crude oil. Particulate matter (soot) emissions have shown a reduction of up to 90 percent depending upon the turbine engine type and operating mode. The reduced soot and sulfur emissions (FT fuel is nearly sulfur-free) significantly improve overall air quality. Syntroleum believes renewable synthetic jet fuel made from its Biofining technology and renewable feedstocks will exhibit similar qualities.

"This contract with the U.S. Department of Defense is another significant milestone for Syntroleum," said Jack Holmes, CEO of Syntroleum. "When the contract is completed, we would be the first company to provide both renewable synthetic aviation fuel and FT aviation fuel to the Department of Defense for its certification and weapon system testing program. This acceptance of our alternative synthetic fuels once again validates the quality and integrity of our product, and the successful completion of this program will provide Syntroleum with an opportunity for other long-term supply contracts with the Department of Defense.

"Additionally, the potential to produce commercial quantities of these fuels using our Biofining technology in our recently announced Dynamic Fuels, LLC venture, initially utilizing fats and vegetable oils and eventually accessing the vast domestic biomass resources via Syntroleum's FT technology, provides a mechanism for diversifying our nation's energy supply and increasing domestic job growth."

Holmes added, "This announcement, directly on the heels of our agreement with Tyson Foods, Inc. to begin design and construction of Dynamic Fuels' first commercial renewable synthetic fuels plant, further strengthens and validates Syntroleum's business model. Our technology and products have been extensively tested and accepted by the U.S. government, private and academic research institutions and auto manufacturers."

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