From algae and wood chips to grasses and solid waste, scientists are looking far and wide for the raw material that will yield a new generation of renewable fuel—a source that doesn't divert food into energy, and is abundant enough to make a significant dent in the oil market.

The world's largest meat company thinks the answer may have been congealing in its facilities all along: Animal fat.

Food-processing giant Tyson Foods, in partnership with the synthetic fuels research firm Syntroleum Corporation, has opened a plant in Geismar, Louisiana (map), that is testing the prospects for converting low-grade, inedible fats and greases into a renewable diesel fuel for transportation.

(Related: "Green Dreams: Making fuel from crops could be good