Darling Ingredients Inc. and Valero Energy Corp. are addressing the growing demand for renewable diesel by initiating an engineering and development cost review for a new plant in Port Arthur, Texas.
The proposed facility would be designed to produce 400 million gallons of renewable diesel annually, as well as 40 million gallons of renewable naphtha. The plant would be owned and operated by Diamond Green Diesel Holdings LLC (DGD), a 50/50 joint venture between Darling Ingredients and Valero.
The proposed Port Arthur plant, the first renewable diesel facility in Texas, would be in a location to leverage Valero’s existing refinery and optimize logistics management. The production from this new facility would increase DGD’s annual renewable diesel production to approximately 1.1 billion gallons, with nearly 100 million gallons of renewable naphtha production.
The final investment decision on the project is expected in 2021, subject to further engineering, necessary permits, and approval by the boards of Darling and Valero. If the decision is made to move forward, new plant construction could begin in 2021, with expected operations commencing in 2024.
“The demand for a low-carbon fuel solution continues to grow as markets move to reduce their carbon intensity. Leveraging its proven technology, DGD continues to adapt and expand production to address that need for the benefit of our environment, our customers and our shareholders,” says Randall C. Stuewe, chairman and CEO of Darling Ingredients Inc. “Diamond Green Diesel has become the most efficient and immediate drop-in, low-carbon fuel solution by capitalizing on the powerful combination of Valero’s refining operations and marketing capabilities with Darling’s integrated supply chain and raw material sourcing expertise.”
DGD’s future total annual capacity of 1.1 billion gallons of renewable diesel and nearly 100 million gallons of renewable naphtha includes production from DGD’s Norco, La., refinery, which is currently being expanded to produce 675 million gallons of renewable diesel and 60 million gallons of naphtha. The Louisiana expansion is targeted for completion at the end of 2021.