The project announced Monday will produce "the next generation of renewable diesel fuel," to help supplement petroleum-based diesel fuel supplies, the companies said in a statement.
"The alliance plans to use beef, pork and poultry by-product fat to create a transportation fuel," the statement said.
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"This fuel will contribute to America's energy security and help to address climate change concerns."
The companies revealed they have been collaborating over the past year "on ways to leverage Tyson's advanced knowledge in protein chemistry and production with ConocoPhillips' processing and marketing expertise."
Arkansas-based Tyson, which claims to be the world's biggest producer of chicken, beef and pork, will make capital improvements this summer in order to begin pre-processing animal fat from some of its North American rendering facilities later in the year.
ConocoPhillips, a Houston, Texas-based oil and gas group, will make the necessary capital expenditures to enable it to pro