Diamond Green Diesel Evaluating New Plant in Port Arthur, Texas to Expand Production up to 1.1 Billion Gallons Annually
September 09 2019 - 8:00AM
Valero Energy Corporation (NYSE: VLO, “Valero”) and Darling
Ingredients Inc. (NYSE: DAR, “Darling”) 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 million gallons of
renewable diesel annually as well as 40 million gallons of
renewable naphtha. The new plant would be owned and operated by
Diamond Green Diesel Holdings LLC (“DGD”), the 50/50 joint venture
between Valero and Darling.
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 Valero and
Darling. If the decision is made to move forward, new plant
construction could begin in 2021, with expected operations
commencing in 2024.
“We expect low-carbon fuel mandates across the
globe to continue to drive demand growth for renewable fuels,” said
Joe Gorder, Valero Chairman, President and Chief Executive Officer.
“This project would meaningfully expand our renewable diesel
segment, which continues to generate strong results, and
demonstrates our commitment to environmentally responsible
operations.”
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 Louisiana
plant, which is currently being expanded to produce 675 million
gallons of renewable diesel and 60 million gallons of naphtha. The
Louisiana expansion is targeted for completion at the end of
2021.
About Valero Valero Energy
Corporation, through its subsidiaries (collectively, “Valero”), is
an international manufacturer and marketer of transportation fuels
and petrochemical products. Valero is a Fortune 50 company
based in San Antonio, Texas, and it operates 15 petroleum
refineries with a combined throughput capacity of approximately 3.1
million barrels per day and 14 ethanol plants with a combined
production capacity of 1.73 billion gallons per year. The petroleum
refineries are located in the United States (U.S.), Canada and the
United Kingdom (U.K.), and the ethanol plants are located in the
Mid-Continent region of the U.S. Valero also is a joint venture
partner in Diamond Green Diesel, which operates a renewable diesel
plant in Norco, Louisiana. Diamond Green Diesel is North America’s
largest biomass-based diesel plant. Valero sells its products in
the wholesale rack or bulk markets in the U.S., Canada, the U.K.,
Ireland and Latin America. Approximately 7,000 outlets carry
Valero’s brand names. Please visit www.valero.com for more
information.
About DarlingDarling
Ingredients Inc. is a global developer and producer of sustainable
natural ingredients from edible and inedible bio-nutrients,
creating a wide range of ingredients and specialty solutions for
customers in the pharmaceutical, food, pet food, feed, technical,
fuel, bioenergy, and fertilizer industries. With operations
on five continents, the Company collects and transforms all aspects
of animal by-product streams into useable and specialty
ingredients, such as gelatin, edible fats, feed-grade fats, animal
proteins and meals, plasma, pet food ingredients, organic
fertilizers, yellow grease, fuel feedstocks, green energy, natural
casings and hides. The Company also recovers and converts
recycled oils (used cooking oil and animal fats) into valuable feed
and fuel ingredients and collects and processes residual bakery
products into feed ingredients. In addition, the Company provides
environmental services, such as grease trap collection and disposal
services to food service establishments. The Company sells its
products domestically and internationally and operates within three
industry segments: Feed Ingredients, Food Ingredients and Fuel
Ingredients. For additional information, visit the Company's
website at http://www.darlingii.com.
Valero ContactsInvestors:Homer
Bhullar, Vice President – Investor Relations, 210-345-1982Gautam
Srivastava, Manager – Investor Relations, 210-345-3992Tom Mahrer,
Manager – Investor Relations, 210-345-1953
Media:Lillian Riojas, Executive Director – Media
Relations and Communications, 210-345-5002
Darling Ingredients
ContactMelissa A. Gaither, Vice President – IR and Global
Communications, 972-281-4478
Safe-Harbor StatementStatements
contained in this release that state the company’s or management’s
expectations or predictions of the future are forward-looking
statements intended to be covered by the safe harbor provisions of
the Securities Act of 1933 and the Securities Exchange Act of
1934. The words “believe,” “expect,” “should,” “would,”
“intend,” “target,” “will,” “plans,” and other similar expressions
identify forward-looking statements. It is important to note
that actual results could differ materially from those projected in
such forward-looking statements based on numerous factors,
including those outside of the company’s control, such as delays in
construction timing and other factors. For more information
concerning factors that could cause actual results to differ from
those expressed or forecasted, see Valero’s annual reports on Form
10-K, quarterly reports on Form 10-Q, and other reports filed with
the Securities and Exchange Commission and on Valero’s website at
www.valero.com.
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