With an expansion already underway at its Norco refinery in Louisiana, Diamond Green Diesel Holdings is initiating an advance engineering and development cost review for a new plant in Texas.
Once operational, the two locations would have an annual combined capacity of 1.1 billion gallons of renewable diesel and nearly 100 million gallons of renewable naphtha. The Norco refinery expansion—which will allow the facility to produce 675 million gallons of renewable diesel and 60 million gallons of naphtha—is targeted for completion at the end of 2021.
The proposed facility in Port Arthur will be designed to produce 400 million gallons of renewable diesel annually as well as 40 million gallons of renewable naphtha. It will be the first renewable diesel facility in Texas. A final investment decision on the project is expected in 2021, subject to further engineering, permitting, and stakeholder approval. If approved, construction is slated to begin that same year, with the refinery operational by 2024.
Diamond Green Diesel Holdings is a joint venture between Darling Ingredients and Valero. Diamond Green Diesel is designed to capitalize on Valero’s refining operations and marketing capabilities and Darling’s integrated supply chain and raw material sourcing expertise.
“The demand for a low carbon fuel solution continues to grow, as markets move to reduce their carbon intensity,” Darling Ingredients Chairman and CEO Randall C. Stuewe said in a statement.
