Valero Energy Corp.'s investments in renewable fuel moved forward Thursday with the completion of a plant that soon will produce renewable diesel fuel from fat.
In a venture known as Diamond Green Diesel LLC, the San Antonio refiner joined 50-50 partner Darling International Inc. of Irving to build the $413 million plant at Valero's St. Charles refinery near New Orleans.
At full production, the plant will produce 9,300 barrels a day of renewable diesel from animal fat, cooking oil and corn oil into renewable diesel, Darling said in a statement.
The diesel will help refiners meetfederal requirements that certain volumes of renewables be blended into transportation fuels.
Valero will market the diesel produced at the plant, which company spokesman Bill Day said will be "a premium product, because unlike other types of biodiesel, it is nearly identical to petroleum-based diesel and can ship by pipeline."
About $50 million was shaved from the plant's cost because it was built on land at Valero's refinery and will use existing utilities and infrastructure, Day said. In addition, the site is near a rail line and docks.
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