To be built in Texas, the Port Arthur plant is expected to produce 400 million gallons of renewable diesel annually as well as 40 million gallons of renewable naphtha


Image: The Port Arthur plant is expected to produce 400 million gallons of renewable diesel per year. Photo courtesy of LEEROY Agency from Pixabay.

Diamond Green Diesel has announced plans to build a new renewable diesel plant in Port Arthur, Texas.

The company,  a 50-50 joint venture between  Darling Ingredients and Valero Energy, would own and operate the new plant.

Darling Ingredients and Valero are conducting an advanced engineering and development cost review for the new plant, which would take advantage of refining capabilities at Valero’s current Port Arthur plant.

The plant is proposed to churn out 400 million gallons of renewable diesel per year as well as 40 million gallons of renewable naphtha.

Darling Ingredients Chairman and CEO Randall Stuewe said: “The demand for a low carbon fuel solution continues to grow, as markets move to reduce their carbon intensity. Leveraging its proven technology, DGD continues to adapt and expand production to address that need for the benefit of our environment, our customers and our shareholders.”

“Diamond Green Diesel has become the most efficient and immediate drop-in, low carbon fuel solution by capitalizing on the powerful combination of Valero’s refining operations and marketing capabilities with Darling’s integrated supply chain and raw material sourcing expertise.

“With these complementary capabilities, Diamond Green Diesel has established itself as the leading industry standard in North America—providing a premier product to the world’s expanding low carbon fuel markets.”

The proposed plant in Port Arthur would increase Diamond Green Diesel’s annual production to about 1.1 billion gallons, along with almost 100 million gallons of renewable naphtha.

Construction of the Port Arthur plant to begin in 2021

Subject to further engineering, receipt of necessary permits, and approval by the boards of Darling and Valero, the final investment decision on the project is expected to be taken in 2021.

Following the investment decision, the construction of the proposed renewable diesel plant is expected to begin in 2021 while operations could begin in 2024.

Currently, Diamond Green Diesel operates a renewable diesel refinery in Norco, Louisiana which is capable of producing approximately 275 million gallons of renewable diesel per year and is undergoing expansion to increase production to 675 million gallons.

The expansion of the Louisiana facility is targeted for completion at the end of 2021.