San Antonio, Texas-based Valero Energy Corp said the firm has achieved mechanical completion of the key sustainable aviation fuel project at its Diamond Green Diesel LLC plant. The latter is a joint venture between Darling Ingredients Inc. Port Arthur, Texas-based renewable diesel facility with an annual capacity of 470 million gallons would now be capable of boosting production of sustainable aviation fuels by year-end, reports OIL&GASJOURNAL.
The project, which finished on time and under budget, provides the DGD facility—operating alongside Valero’s 385,000-barrel-per-day Port Arthur refinery—with the capability to shift up to 50% of its renewable diesel output to SAF. DGD’s facility, fully operational since late 2022, also produces 20 million gallons of renewable naphtha each year.
Valero’s May 2024 investor presentation revealed the project’s estimated $315 million cost and described new installations, including a heater, a fractionation unit for separating SAF and renewable diesel, and expanded storage tanks. Once fully active, this SAF project is expected to generate around 235 million gallons per year.
Valero, in a recent shareholder report, also confirmed the output of the DGD plant as synthetic paraffinic kerosene, a type of renewable fuel through HEFA. This fuel is also known as neat SAF, which will be blended with up to 50% of traditional Jetfuel for use on aircraft.
Valero is also exploring an ethanol-to-jet fuel process, which, if developed, would allow the conversion of production from select low-carbon ethanol plants with carbon capture technology into SAF, potentially increasing its sustainable fuel options.
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