Refiner Valero Energy and Darling Ingredients said that their joint venture had approved a project to upgrade about half of the production capacity of Port Arthur renewable diesel plant in Texas to sustainable aviation fuel.
The project, expected to be completed in 2025, would cost $315 million, the companies said.
The DGD Port Arthur plant, operated by the JV, Diamond Green Diesel Holdings LLC, has an annual production capacity of 470 million gallons.
"This project is a natural extension of our liquid fuels manufacturing expertise and demonstrates our growth strategy through innovation in renewables," Valero Chief Executive Joe Gorder said in a statement.
Valero, which topped Wall Street estimates for quarterly profit last week, had said the plant became operational in the fourth quarter. -Reuters