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Sept 9 (Reuters) - U.S. refiner Valero Energy Corp said on Monday it has started a cost review of a new plant in Port Arthur, Texas, along with food processor Darling Ingredients Inc.
The facility, which aims to tap into the growing global demand for renewable diesel, is expected to produce 400 million gallons of diesel and 40 million gallons of renewable naphtha a year.
The final investment decision on the project is expected in 2021. If approved, the construction of the first renewable diesel facility in Texas could begin in the same year, with expected operations starting in 2024.
It will be owned and operated by Diamond Green Diesel Holdings LLC, a joint venture between Valero and Darling.
"We expect low-carbon fuel mandates across the globe to continue to drive demand growth for renewable fuels," Joe Gorder, Valero's Chief Executive Officer said in a statement.
Production from the plant would increase Diamond Green Diesel Holdings's annual renewable diesel production to about 1.1 billion gallons, with nearly 100 million gallons of renewable naphtha production, the companies said. (Reporting by Arundhati Sarkar in Bengaluru; Editing by Arun Koyyur)