Darling International has announced that Diamond Green Diesel, its previously announced joint venture project with Valero Energy Corporation, has secured financing for the planned construction of its renewable diesel facility in Norco, Louisiana.
Financing will be provided internally by a subsidiary of Valero Energy Corporation.
Randall C. Stuewe, Chairman and CEO of Darling, said, "We are pleased to have reached agreement with Valero to fund this critical project. Valero's support for this project is critical and this is another means of displaying their confidence in both the technology and viability of the project. Valero's financing commitment means that we will no longer require a funding guarantee from the U.S. Department of Energy under the Energy Policy Act of 2005.
"Nevertheless, we would like to thank the Department of Energy for their support for this project, which is expected to generate numerous jobs in the State of Louisiana."
The facility will be capable of producing over 9,300 barrels per day or 137 million gallons per year of renewable diesel on a site adjacent to Valero's St. Charles refinery near Norco, Louisiana.
The facility will convert grease, primarily animal fats and used cooking oil supplied by Darling, and potentially other feedstocks that become economically and commercially viable, into renewable diesel. Construction on the facility will commence in June 2011 with completion anticipated during the fourth quarter of 2012.
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