Diamond Green Diesel Facility Gets Approval

Low-carbon fuel policies are expected to continue expanding globally, driving demand for renewable fuels, says Joe Gorder, Valero chairman and chief executive officer. To that end, Darling and Valero’s 50/50 joint venture, Diamond Green Diesel (DGD), has received approval from both companies’ boards of directors to proceed. The renewable diesel production facility will be located at Valero’s Port Arthur, TX refinery.

“We are applying our liquid fuels expertise to continue to expand our long-term competitive advantage in low-carbon transportation fuels with the expansion of DGD,” says Gorder.

DGD’s Port Arthur’s annual capacity is estimated to be 470 million gallons of renewable diesel. This new plant is anticipated to commence operations in the second half of 2023.

Once operational, and when combined with the increased capacity at the Norco, CA facility (currently 290 million gallons annually with an anticipated increase of 400 million gallons operational later this year), DGD’s total annual production capacity is expected to be approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha. The current estimated construction cost is $1.45 billion to be split equally between the joint venture partners and funded from internal cash flows provided by DGD.

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