Diamond Green Diesel to expand to 275 million gallons

Darling Ingredients Inc. has announced an expansion of the Diamond Green Diesel (DGD) facility in Norco, LA. DGD is the company's joint venture with Valero Energy Corporation. The expansion will grow the facility's annual production capacity from 160 million gal. of renewable diesel to 275 million gal. The incremental cost per gallon of renewable diesel production for the expansion, is estimated to be approximately one half of the greenfield construction cost due to significant logistics and processing facilities already in place.

This expansion plan is expected to be funded by DGD cash flow and is subject to final engineering and cost analysis. DGD estimates completion in the 4Q17, with production expected to ramp up in the 1Q18. DGD expects to operate at full capacity throughout the expansion phase, excluding an estimated 15 to 30 days of necessary downtime for final tie ins. The planned expansion will also include expanded outbound logistics for servicing the many developing low carbon fuel markets around North America and the globe.

"Our Diamond Green Diesel joint venture continues to be a shining star in our portfolio of ingredients and our DGD team has successfully proven the technology works, producing the highest quality product to meet the expectations of our customers," commented Randall C. Stuewe, Darling Ingredients Inc. Chairman and Chief Executive Officer, on the planned expansion.

Adapted from press release by Francesca Brindle

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/08042016/diamond-green-diesel-facility-expand-275-million-gallons-annually-2981/