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Diamond Green Diesel receives approval to begin DGD III biorefinery construction

In the United States (US), Darling Ingredients Inc., a global developer, and producer of sustainable natural ingredients from edible and inedible bio-nutrients has announced that Diamond Green Diesel LLC (DGD), its joint venture with Valero Energy Corporation (Valero), has received approval from both companies' Boards of Directors to proceed with the construction of the renewable diesel production facility known as DGD III to be located at Valero's Port Arthur, Texas (TX) refinery.

Commissioned in 2013, Diamond Green Diesel LLC (DGD) renewable diesel biorefinery in Norco, Louisiana (LA), a joint venture with Valero Energy Corporation and Darling Ingredients Inc., has grown from an initial annual production capacity of 160 million gallons to 675 million gallons during 2021 making it the largest facility in North America (photo courtesy DGD).

In November 2020, Diamond Green Diesel received the necessary air permit from the Texas Commission on Environmental Quality (TCEQ), for the facility. DGD Port Arthur’s capacity is estimated to be 470 million (US) gallons (≈ 1.78 billion litres) per year of renewable diesel (aka HVO). DGD III is anticipated to commence operations in the second half of 2023.

The Board of Directors of Darling Ingredients is pleased to be moving forward with the construction of DGD at Port Arthur. 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, said Randall C. Stuewe Chairman and CEO of Darling Ingredients.

Once operational, and when combined with the increased capacity at the Norco, Louisana (LA) facility – currently 290 million gallons (≈ 1.1 billion litres) annually with an anticipated increase of 400 million gallons (≈ 1.51 billion litres) due to be operational later this year – DGD’s total annual production capacity is expected to be approximately 1.2 billion gallons (≈ 4.54 billion litres) of renewable diesel and 50 million gallons (≈ 189.25 million litres) of renewable naphtha.

The current estimated construction cost is US$1.45 billion to be split equally between the joint venture partners and funded from internal cash flows provided by DGD.

We expect low-carbon fuel policies to continue to expand globally and drive demand for renewable fuels, 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, said Joe Gorder, Chairman and CEO of Valero.

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