November 9 (Renewables Now) - Organic ingredients provider Darling Ingredients Inc (NYSE:DAR) and refiner Valero Energy Corp (NYSE:VLO) this week announced approval for a major expansion of the Diamond Green Diesel (DGD) facility in Norco, Louisiana.
The expansion project will boost the facility's annual renewable diesel production capacity by 400 million gallons (1.5 billion litres) to 675 million gallons. The project will see the construction of a second plant next to the existing facility and the addition of a renewable naphtha finishing facility that will produce 50 million to 60 million gallons of renewable naphtha.
"We are pleased both Boards approved the new investment and plan to commence construction immediately," said Randall C Stuewe, chairman and chief executive of Darling Ingredients.
The USD-1.1-billion (EUR 969m) expansion is expected to be funded from cash generated by DGD, which is a joint venture between subsidiaries of Valero and Darling Ingredients.
Valero said that low-carbon mandates in North America and Europe are expected to continue to drive strong demand and premium pricing for renewable diesel.
(USD 1 = EUR 0.881)