Valero reports solid results for biofuel segments, mechanical completion of SAF project
October 24, 2024
BY Erin Voegele
Valero Energy Corp. released third quarter financial results on Oct. 24, reporting increased production for both its ethanol and renewable diesel segments. Valero’s sustainable aviation fuel (SAF) project is expected to be fully operational before the end of the year.
The company’s ethanol segment reported $153 million in operating income for the third quarter, down from $197 million during the same period of last year. Ethanol production volumes averaged 4.6 million gallons per day, up 255,000 gallons per day when compared to the third quarter of 2023.
Homer Bhullar, vice president of investor relations and finance at Valero, said the ethanol segment is currently expected to produce 4.7 million gallons per day in the fourth quarter. Eric Fischer, senior vice president of product supply, trading and wholesale at Valero, noted the company has expanded its ethanol production capabilities this year in anticipation of increased demand globally for ethanol.
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Valero’s renewable diesel segment, which consists of the Diamond Green Diesel joint venture, reported $35 million of operating income for the quarter, down from $123 million during the same period of 2023. Sales volumes averaged 3.5 million gallons per day, up 552,000 per day when compared to the third quarter of 2023. According to Bhullar, Valero expects renewable diesel sales volumes for the full year 2024 to be approximately 1.2 billion gallons.
Lane Riggs, president and CEO of Valero, reported that the SAF product under development at the DGD Port Arthur plant in Texas reached mechanical completion in October and is now in the process of starting up. The project is expected to be fully operational this year, providing the plant with the optionality to upgrade approximately 50% of the facility’s current 470 MMgy of production capacity to SAF.
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