Syntroleum, through their JV with Tyson Foods Dynamic Fuels, has actually sold fuel to the military before, including the well publicized Green Fleet exercise near Hawaii this past summer. They produce renewable diesel from yellow grease, chicken fat, etc. The Geismar, LA facility is first of it's kind and kinks have basically been worked out.
Google the "Great Green Fleet"...Navy exercises this past summer. Very controversial due to cost of fuel but military pleased with the result.
Dynamic Fuels has provided their flavor of jet fuel to many airlines as well & is providing Norfolk Southern RR with fuel. They have partnered with Mansfield Oil for fleet sales, including Enterprise.
They sold a coal-to-liquid demo facility to Sinopec but have been suspiciously tight-lipped about any developments there. SYNM also has gas-to-liquid (GTL) expertise and has provided plans to some potential major partners for smaller scale plants. Geismar facility was designed with space for a second plant (likely a GTL facility). Sasol, world's leading player in GTL, recently announced plans for a massive GTL facility in Louisiana that will commence production in 2018.
There are over $330 million in NOL carryforwards and this company is turning the corner, which will essentially make most future earnings tax free.
Plenty to this story and it is my top pick here for a 12 month return. Also, I see it as an ideal January play.
I compare the likely potential here with what Rentech (RTK) achieved off the lows a couple years back but feel this has greater potential from this level with probable military deals and licensing revenue from Sinopec.
Institutional selling for window dressing purposes is giving us an opportunity IMO.
Market is saying show me the money first.
