US midstream company Howard Energy Partners (HEP) is to ‘significantly’ expand its terminal in Port Arthur, Texas, US to provide storage and transport of feedstocks and product for a new renewable diesel plant.
HEP has signed long-term agreements with Diamond Green Diesel (DGD), a 50:50 joint venture between Valero Energy and Darling Ingredients, which recently announced it would build a 470 million gallon per year (1.8 million L) renewable diesel plant at Valero’s Port Arthur refinery.
HEP has already begun engineering, permitting and construction work for the expansion, which will comprise 575,000 bbl of storage, three pipelines and associated connections to Valero’s Port Arthur refinery, 11.3 km of rail track, associated rail unloading/loading facilities, truck unloading facilities, and a Panamax-class-capable deep-water dock. The facilities will be able to handle multiple products and there will be capacity for third-party shippers. The in-service date will coincide with the startup of DGD’s plant.
Once the expansion is complete, the Port Arthur terminal will have 1.9 million bbl of refined product storage capacity, around 26 km of rail track with unit train and manifest service from two railway lines, three barge docks, two ship docks, and pipeline connectivity to local refiners and major refined product distribution hubs.
DGD makes its renewable diesel from sustainable feedstocks such as used cooking oil, rendered animal fats and inedible corn oil. The renewable diesel is chemically identical to standard diesel so can be used without infrastructure or engine modifications.
“Howard Energy Partners’ long-term contract with Diamond Green Diesel provides DGD with a competitive advantage in the production and distribution of renewable diesel around the world,’ says John Bullock, executive vice president, chief strategy officer for Darling Ingredients, adding: ‘’We believe this agreement significantly enhances our raw material sourcing of feedstock as well as provides for better finished product marketing and distribution when the DGD Port Arthur facility commences production in the second half of 2023.’