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Diamond Green Diesel signs distribution logistics deal with St. Rose IMTT Terminal

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, its joint venture with Valero Energy Corporation, has entered into a long-term lease agreement with International-Matex Tank Terminals (IMTT). The deal will allow Diamond Green Diesel access and use of the St. Rose IMTT as a logistics hub for its renewable diesel facility in Norco, Louisiana (LA).

Darling Ingredients has announced that Diamond Green Diesel, its joint venture with Valero Energy Corporation, has entered into a long-term lease agreement with International-Matex Tank Terminals (IMTT) to allow Diamond Green Diesel access and use of the St. Rose IMMT in Louisiana (LA) as a logistics hub for it’s existing and expanding renewable diesel facility located in Norco, Louisiana (photo courtesy IMMT).

Currently, IMTT is comprised of 19 terminals throughout North America with terminals located on the East, West, and Gulf Coasts as well as the Great Lakes region. According to a statement, the deal will allow Diamond Green Diesel access and use of the St. Rose IMTT Terminal as a logistics hub for it’s existing and expanding renewable diesel facility located in Norco, Louisiana (LA).

IMTT will, pursuant to the agreement, construct two 5-mile long pipelines connecting its St. Rose Terminal with the Diamond Green Diesel Norco, LA renewable diesel facility. IMTT will also repurpose approximately 790 000 barrels of existing storage capacity from heavy and residual petroleum service to the storage of renewable diesel feedstock and finished product as a part of the project.

The pipeline build and the storage capacity transition are expected to be in service prior to the end of 2021, coinciding with the anticipated startup of Diamond Green Diesel’s current 400 million (US) gallon (≈ 1.5 million litres) expansion project.

We are extremely pleased to be working with IMTT. What is so often overlooked when discussing the critical success components of renewable diesel economics is the supply chain, which is both complicated and costly to manage. Having a world-class terminal like IMTT St. Rose accessible by pipeline with the capability to receive feedstocks and ship product via multiple modes of transport creates a significant competitive advantage for us. DGD has been a leader in the industry and developing a sophisticated and flexible supply chain is a continuation of our leadership position. We would not be in this business without a thorough plan that provides for flexibility in raw material sourcing and finished product marketing. This agreement places us in a position to economically source renewable diesel feedstock while allowing us to supply the best markets for our renewable diesel and naphtha, said John Bullock, EVP, Chief Strategy Officer for Darling Ingredients.

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