Renewable Diesel Plant to Produce 470 Million Gallons Per Year

Darling Ingredients Inc. and Valero Energy Corp. said they will build a renewable diesel production facility to be located at Valero’s refinery in Port Arthur, Texas. 

The companies said in a Jan. 28 statement that their 50/50 joint venture, Diamond Green Diesel, has received approval from both companies’ boards to proceed with construction of the DGD facility, whose capacity is projected to be an estimated 470 million gallons per year of renewable diesel. The new plant is anticipated to commence operations in the second half of 2023. Once operational, and when combined with increased capacity at a Norco, Louisiana, facility (currently 290 million gallons annually with an anticipated increase of 400 million gallons  due to be operational later this year), DGD’s total annual production capacity is expected to be approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha. The current estimated construction cost is $1.45 billion to be split equally between the joint venture partners and funded from internal cash flows provided by DGD, according to the statement.

“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 is a producer of organic ingredients, producing an array of sustainable protein and fat products while also being a producer of renewable clean energy. 

With operations on five continents, Darling collects waste streams from the agri-food industry for 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 additional information, visit http://www.darlingii.com.

Valero Energy is based in San Antonio, Texas, and 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. Valero, as a joint venture partner in Diamond Green Diesel, operates a renewable diesel plant in Norco, Louisiana. Visit www.investorvalero.com for more information.

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