Darling Ingredients Inc. and Valero Energy Corp. are addressing the growing demand for renewable diesel in global, low carbon markets by initiating an advanced engineering and development cost review for a new plant in Port Arthur, Texas. The proposed facility under review would be designed to produce 400 MMgy of renewable diesel as well as 40 MMgy of renewable naphtha. The new plant would be owned and operated by Diamond Green Diesel Holdings LLC, the 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 plant 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, obtaining 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,” said Randall C. Stuewe, chairman and CEO of Darling Ingredients. “Leveraging its proven technology, Diamond Green Diesel continues to adapt and expand production to address that need for the benefit of our environment, our customers and our shareholders. 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. With these complementary capabilities, Diamond Green Diesel has established itself as the leading industry standard in North America—providing a premier product to the world’s expanding low carbon fuel markets.”

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, Louisiana, refinery, which is currently being expanded to produce 675 MMgy of renewable diesel and 60 MMgy of naphtha. The Louisiana expansion is targeted for completion at the end of 2021.