IRVING Texas and SAN ANTONIO, Jan. 28,
2021 /PRNewswire/ -- Darling Ingredients Inc. (NYSE:DAR)
("Darling") & Valero Energy Corporation (NYSE:VLO)
("Valero") –
Darling and Valero jointly announce today that their 50/50 joint
venture, Diamond Green Diesel
("DGD"), has received approval from both companies' Boards of
Directors to proceed with the construction of the renewable diesel
production facility to be located at Valero's Port Arthur, Texas refinery.
DGD Port Arthur's capacity is estimated to be 470 million
gallons per year 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, LA facility (currently 290
million gallons annually with an anticipated increase of 400
million gallons due to be 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.
"The Board of Directors of Darling Ingredients is pleased to be
moving forward with the construction of DGD at Port Arthur," said Randall C. Stuewe Chairman and Chief Executive
Officer of Darling Ingredients. "The project is moving forward
immediately and we fully plan to utilize the first mover advantage
DGD has in North America as we
believe Darling's vertical integration coupled with Valero's
refining expertise are key to providing low carbon feedstocks to
the DGD renewable diesel platform."
"We expect low-carbon fuel policies to continue to expand
globally and drive demand for renewable fuels," said Joe Gorder, Valero Chairman and Chief Executive
Officer, "and to that end, 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."
About Darling
Darling Ingredients Inc. (NYSE: DAR) is
one of the world's leading producers of organic ingredients,
producing a wide array of sustainable protein and fat products
while being one of the largest producers of renewable clean energy.
With operations on five continents, Darling collects waste streams
from the agri-food industry, repurposing into specialty
ingredients, such as hydrolyzed collagen, edible and feed-grade
fats, animal proteins and meals, plasma, pet food ingredients, fuel
feedstocks, and green bioenergy. The Company sells its products
around the globe and works to strengthen our promise for a better
tomorrow, creating product applications for health, nutrients and
bioenergy while optimizing our services to the food chain. Darling
is a 50% joint venture partner in Diamond
Green Diesel (DGD), North
America's largest renewable diesel manufacturer, currently
producing approximately 290 million gallons of renewable diesel
annually which products reduce Green House Gas (GHG) emissions by
up to 85% compared to fossil fuels. For additional information,
visit the Company's website at http://www.darlingii.com. For more
information on Darling's ESG efforts, visit
http://www.darlingii.com/csr.
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 3.2 million barrels per day and 13 ethanol plants
with a combined production capacity of approximately 1.68 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.investorvalero.com for
more information.
Safe Harbor Statement
Some of the statements made in this press release are
forward-looking statements. These forward-looking statements
are based upon our current expectations and projections about
future events and generally relate to our plans, objectives and
expectations for the development of our business. Although
management believes that the plans and objectives reflected in or
suggested by these forward-looking statements are reasonable, all
forward-looking statements involve risks and uncertainties and
actual future results may be materially different from the plans,
objectives and expectations expressed in this press release.
Darling Contact:
James Stark, Vice President -
Investor Relations, 972-281-4823
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SOURCE Diamond Green Diesel