Valero Energy Corporation announced today that its Board of Directors approved a project to expand the Diamond Green Diesel (“DGD”) plant in Norco, LA, to 675 million gallons per year renewable diesel production capacity.
“We’re pleased to be taking this next step in our partnership with Darling Ingredients,” said Joe Gorder, Valero Chairman, President and Chief Executive Officer. “This growth project fits nicely within our current capital allocation framework and is expected to deliver high returns for investors without changing our capital profile.”
With low carbon mandates in North America and Europe projected to continue driving strong demand and premium pricing for renewable diesel, this expansion adds a second, independent parallel plant adjacent to the existing facility and a renewable naphtha finishing facility, which provides incremental low carbon fuel standard credit generation capability. Valero expects its 50 percent share, or approximately $550 million, to be funded from cash generated by DGD’s operations and for the project to be completed in late 2021.
DGD is a joint venture formed between a subsidiary of Valero and Darling Ingredients Inc. (NYSE: DAR), the largest low carbon feedstock supplier in the world. Darling Ingredients separately announced that its Board of Directors also approved this project.
