Valero Energy Corporation and Darling Ingredients Inc. announced that the companies have made the final investment decision on a Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant, which is owned and operated by Diamond Green Diesel Holdings LLC, a 50/50 joint venture between Valero and Darling. Upon completion of the project, which is expected in 2025, the DGD Port Arthur plant will have the capability to upgrade approximately 50 percent of its current 470 million gallon annual production capacity to SAF. The project’s estimated cost is $315 million, with half of that attributable to Valero. With the completion of this project, DGD is expected to be one of the largest SAF manufacturers in the world.
“This project is a natural extension of our liquid fuels manufacturing expertise and demonstrates our growth strategy through innovation in renewables,” said Joe Gorder, Valero’s Chairman and Chief Executive Officer. “Underpinned by strong interest from customers, sustainable aviation fuel provides an economic path to further reduce the carbon intensity of our products while expanding our long-term competitive advantage.”