Diamond Green Diesel, a joint venture between energy firm
Valero Energy Corporation
) and animal by-product recycler
Darling International Inc.
) reported mechanical completion and the start-up process of its
renewable diesel project.
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The commissioning of Diamond Green Diesel's project will lead to
full production at the joint venture. Upon starting operations at
100%, the plant - with a capacity of 9,300 barrel per day - will
process recycled animal fat, cooking oil and corn oil into
renewable diesel fuel that has similar characteristics to
petroleum-based diesel. The renewable diesel can be transported
through pipeline and meet low-carbon fuel standards.
The new plant will not only enable the production of renewable
diesel from U.S.-based feedstock, it will also generate
employment, decrease greenhouse-gas emissions and endorse energy
Among all the independent refiners, Valero offers the most
diversified refinery base with a capacity of 2.8 million barrels
per day in its 14 refineries located throughout the U.S., Canada
and the Caribbean. More importantly, Valero is best positioned to
profit from increased refining margins mainly on account of its
strategic refinery structure that enables it to use cheaper oil
for over half of its needs.
The company is one of the largest independent retailers of
refined petroleum products in central and southwestern U.S. and
in eastern Canada, with more than 5,800 retail outlets under
various brand names, including Diamond Shamrock, Valero, Ultramar
and Beacon. Valero is also a leading ethanol producer with 10
ethanol plants in the Midwest that has a combined capacity of 1.2
billion gallons per year.
Valero carries a Zacks Rank #3 (Hold). However, there are other
Zacks Ranked #1 (Strong Buy) stocks -
PetroQuest Enerrgy Inc.
Hornbech Offshore Services, Inc.
) - that are expected to perform impressively over the short