San Antonio-based oil refiner Valero Energy Corp. plans to expand its Diamond Green Diesel plant in Norco, Louisiana, according to the following article from the San Antonio Business Journal.
The company's board today approved the project, which will increase the plant's diesel production capacity to 675 million gallons per year. The Diamond Green Diesel plant is a joint venture between Valero (NYSE: VLO) and Darling Ingredients Inc. (NYSE: DAR), which produces various animal byproducts, including gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, natural casings and hides. It is the largest low-carbon feedstock supplier in the world.
The expansion will add a second plant adjacent to the existing facility and a renewable naphtha finishing facility. Naphtha is a flammable oil often produced by distilling substances such as coal, shale and petroleum. Valero expects its 50 percent share, or about $550 million, to be funded from cash generated by the Diamond Green Diesel plant's operations. The project is scheduled for completion in late 2021.
“We’re pleased to be taking this next step in our partnership with Darling Ingredients,” Valero CEO Joe Gordersaid in a news release. “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.”
Norco is in the St. Charles Parish and is a hub for the petroleum industry.
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