Diamond Green Diesel (DGD)—a joint venture between Valero Energy Corporation and Darling Ingredients—will expand its annual production capacity at its plant in Norco, LA from 160 million gallons of renewable diesel to 275 million gallons.
The company estimates that the incremental cost per gallon of renewable diesel production for the expansion will 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 fourth quarter of 2017, with production expected to ramp-up in the first quarter of 2018.
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.