DGD Receives Board Approval to Construct Renewable Diesel Production Facility

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Darling Ingredients Inc., a producer of organic ingredients, and Valero Energy Corp., an international manufacturer and marketer of transportation fuels, say their 50/50 joint venture, Diamond Green Diesel (DGD), has received approval from both companies’ boards of directors to proceed with the construction of a renewable diesel production facility to be located at Valero’s Port Arthur, Texas, refinery.

“The board of directors of Darling Ingredients is pleased to be moving forward with the construction of DGD at Port Arthur,” says Randall C. Stuewe, chairman and CEO of Darling Ingredients. “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.”

DGD Port Arthur’s capacity is estimated to be 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 the increased capacity at the Norco, Calif., facility, 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.

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Nick Martin
Nick Martin
5 months ago

Great news, hoping TX transit agencies and fleets, RRs can use as we work to go electric.