Valero Energy and Darling Ingredients have initiated an advanced engineering and development cost review for a new renewable diesel plant in Port Arthur, Texas.
The proposed facility under review would product 400 million gallons of renewable diesel annually as well as 40 million gallons of renewable naphtha. It would help address the growing demand for renewable diesel in global, low-carbon markets.
The new plant would be owned and operated by Diamond Green Diesel, the 50/50 joint venture between the two companies.
The plant, which would be the first renewable diesel facility in Texas, would be located to leverage Valero's existing refinery and optimise logistics management. The production from the facility would increase Diamond Green Diesel's annual renewable diesel production to 1.1 billion gallons with nearly 100 million gallons of renewable naphtha production.
The final investment decision is expected in 2021, with expected operations commencing in 2024.
Joe Gorder, Valero chairman, president and CEO, says: 'We expect low-carbon fuel mandates across the globe to continue to drive demand growth for renewable fuels. 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 includes production from its Louisiana plant, which is currently being expanded to produce 675 million gallons of renewable diesel and 60 million gallons of naphtha. This expansion is expected to be complete by the end of 2021.