Valero and Darling propose new renewable diesel plant

Valero Energy Corp. and Darling Ingredients Inc. are addressing the growing demand for renewable diesel in global, low-carbon markets by initiating an advanced engineering and development cost review for a new plant in Port Arthur, Texas. The proposed facility under review would be designed to produce 400 million gal. of renewable diesel annually as well as 40 million gal. of renewable naphtha. The new plant would be owned and operated by Diamond Green Diesel Holdings LLC, the 50/50 joint venture between Valero and Darling.

The proposed Port Arthur plant, the first renewable diesel facility in Texas, would be in a location to leverage Valero’s existing refinery and optimise logistics management. The production from this new plant would increase DGD’s annual renewable diesel production to approximately 1.1 billion gal. with nearly 100 million gal. of renewable naphtha production. The FID on the project is expected in 2021, subject to further engineering, obtaining necessary permits, and approval by the boards of Valero and Darling. If the decision is made to move forward, new plant construction could begin in 2021, with expected operations commencing in 2024.

“We expect low-carbon fuel mandates across the globe to continue to drive demand growth for renewable fuels,” said Joe Gorder, Valero Chairman, President and CEO. “This project would meaningfully expand our renewable diesel segment, which continues to generate strong results, and demonstrates our commitment to environmentally responsible operations.”

DGD’s future total annual capacity of 1.1 billion gal. of renewable diesel and nearly 100 million gal. of renewable naphtha includes production from DGD’s Louisiana plant, which is currently being expanded to produce 675 million gal. of renewable diesel and 60 million gal. of naphtha. The Louisiana expansion is targeted for completion at the end of 2021.