Valero and Darling Ingredients to invest in diesel plant
Valero Energy Corp and its partner Darling Ingredients Inc reported that they will build a new 470 million gallon per year (DGD 3) renewable diesel plant at the Valero refinery in Port Arthur, Texas, in United States.
The new plant is expected to begin operations in the second half of 2023, increasing DGD’s total annual production capacity to approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.
The plant will require an investment of $ 1.45 billion and will be operated by the Diamond Green Diesel (DGD) joint venture.
Evidently, Valero continues to grow its position as the largest producer of renewable fuels in North America with plans to quadruple its production of renewable diesel by the end of 2023.
At the same time, the expansion of DGD’s plant in St. Charles (DGD 2) would increase renewable diesel production by 400 million gallons per year and is expected to be completed in the fourth quarter of 2021.
Valero
In 2020, the company completed several strategic projects on schedule and on budget and continued to advance other projects despite challenges related to the Covid-19 pandemic and various hurricanes.
Valero’s Pasadena terminal project, which was completed in the first quarter of 2020, expands the company’s product logistics portfolio, increases biofuel blending capacity, and improves export flexibility.
The St. Charles Alkylation unit, which started in the fourth quarter, is designed to convert low-value raw materials into a premium alkylate product.
The Pembroke Cogen project and the Diamond Pipeline expansion are on track for completion in the third and fourth quarters of 2021, respectively, and the Port Arthur Coker project is expected to be completed in 2023.
Equity investments attributable to Valero are projected at $ 2 billion in 2021, of which approximately 60% is to sustain the business and approximately 40% is for growth projects.
Almost half of Valero’s growth capital by 2021 will go to expanding the renewable diesel business.
