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Valero, Darling Ingredients explore building renewable diesel plant in Texas

Valero Energy Corp. and Darling Ingredients Inc. are evaluating construction of a renewable diesel plant in Port Arthur, Texas, that could produce 400 million gallons of renewable diesel per year and 40 million gallons of renewable naphtha, according to a Sept. 9 news release from Valero.

The plant would be owned and operated by Diamond Green Diesel Holdings LLC, which is a joint venture between Valero and Darling. The facility would boost the joint venture's annual renewable diesel production to approximately 1.1 billion gallons, with nearly 100 million gallons of renewable naphtha production.

Valero said the project's final investment decision is expected in 2021, subject to further engineering, securing necessary permits and board approval from Valero and Darling.

If the companies decide to proceed with the project, construction could start in 2021 and operations could begin in 2024.