Diamond Green Diesel’s renewable diesel plant gets green light
Darling Ingredients Inc. and Valero Energy Corporation jointly announced that their 50-50 joint venture, Diamond Green Diesel (DGD), has received approval from both companies’ Boards of Directors to proceed with the construction of the renewable diesel production facility to be located at Valero’s Port Arthur, Texas, U.S.A. refinery.
DGD Port Arthur’s capacity is estimated to be 470 million gallons per year of renewable diesel fuel. This new plant is anticipated to commence operations in the second half of 2023. Once operational, and when combined with the increased capacity at the Norco, Louisiana, U.S.A., facility, DGD’s total annual production capacity is expected to be approximately 1.2 billion gallons of renewable diesel fuels and 50 million gallons of renewable naphtha. Norco’s current capacity is 290 million gallons annually, with an anticipated increase of 400 million gallons due to be operational later this year.
The current estimated construction cost is USD1.45 billion to be split equally between the joint venture partners and funded from internal cash flows provided by DGD.
“The Board of Directors of Darling Ingredients is pleased to be moving forward with the construction of DGD at Port Arthur,” said Randall C. Stuewe, chairman and chief executive officer of Darling Ingredients. “The project is moving forward immediately and we fully plan to utilize the first mover advantage DGD has in North America as we believe Darling’s vertical integration coupled with Valero’s refining expertise are key to providing low carbon feedstocks to the DGD renewable diesel platform.”
“We expect low-carbon fuel policies to continue to expand globally and drive demand for renewable fuels,” said Joe Gorder, Valero chairman and chief executive officer, “and to that end, we are applying our liquid fuels expertise to continue to expand our long-term competitive advantage in low-carbon transportation fuels with the expansion of DGD.”
Darling Ingredients Inc. (NYSE: DAR) is one of the world’s leading producers of organic ingredients, producing a wide array of sustainable protein and fat products while being one of the largest producers of renewable clean energy. With operations on five continents, Darling collects waste streams from the agri-food industry, repurposing into specialty ingredients, such as hydrolyzed collagen, edible and feed-grade fats, animal proteins and meals, plasma, pet food ingredients, fuel feedstocks, and green bioenergy. For more information, visit http://www.darlingii.com.
Valero Energy Corporation, through its subsidiaries, is an international manufacturer and marketer of transportation fuels and petrochemical products. Valero is a Fortune 50 company based in San Antonio, Texas, U.S.A. It operates 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day and 13 ethanol plants with a combined production capacity of approximately 1.68 billion gallons per year. The petroleum refineries are located in the United States, Canada and the United Kingdom. Its ethanol plants are located in the Mid-Continent region of the U.S. For more information, visit www.investorvalero.com.