Diamond Green Diesel will use the St. Rose International-Matex Tank Terminal as a logistics hub for its renewable diesel facility in Norco.
Diamond Green Diesel is a joint venture between Darling Ingredients Inc. and Valero Energy Corporation that produces 18,000 barrels per day of renewable diesel fuel from animal fats used in cooking oil and inedible corn oil.
Its long-term lease agreement with IMTT allows Diamond Green Diesel to construct two 5-mile long pipelines connecting the St. Rose terminal with its renewable diesel facility. IMTT will also repurpose approximately 790,000 barrels of existing storage capacity from heavy and residual petroleum service to storage of renewable diesel feedstock and finished product as a part of the project. The pipeline build and the storage capacity transition are expected to be in service prior to the end of 2021, coinciding with the anticipated startup of Diamond Green Diesel’s 400 million-gallon expansion project.
In a statement issued last week, Diamond Green executives said the agreement places the company in a position to economically source renewable diesel feedstock and also move its product to market.
“What is so often overlooked when discussing the critical success components of renewable diesel economics is the supply chain, which is both complicated and costly to manage,” John Bullock, EVP and chief strategy officer for Darling Ingredients. “Having a world-class terminal like IMTT St. Rose accessible by pipeline with the capability to receive feedstocks and ship product via multiple modes of transport creates a significant competitive advantage for us.”
Darling Ingredients Inc. collects and transforms animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The company also recovers and converts recycled oils (used cooking oil and animal fats) into feed and fuel ingredients.
New Orleans-based IMTT operates 19 terminals throughout North America that handle petroleum, biofuels, commodity/specialty chemicals, and vegetable/tropical oil products for customers including refiners, commodities traders and chemical manufacturers and distributers.