By Colin Kellaher
Darling Ingredients and Valero Energy on Monday said they will study building a new plant in Port Arthur, Texas, to boost renewable diesel production at their Diamond Green Diesel Holdings LLC venture.
The companies said they are initiating an advanced engineering and development cost review for a plant that would produce 400 million gallons of renewable diesel and 40 million gallons of renewable naphtha a year.
Coupled with a current expansion of the venture's refinery in Norco, La., the move would boost Diamond Green's annual output to roughly 1.1 billion gallons of renewable diesel production and nearly 100 million gallons of renewable naphtha, the companies said.
Darling and Valero said they expect to make a final investment decision on the project in 2021, adding that operations could begin in 2024.
Darling, an Irving, Texas, ingredients maker, and Valero, a San Antonio petroleum refiner and ethanol producer, formed Diamond Green to build the Norco refinery to process animal fats, used cooking oil and inedible corn oil into renewable diesel fuel.
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