Valero finances major renewable diesel project; Darling/Valero JV drops DOE loan guarantee quest

In Texas, Darling International announced that Diamond Green Diesel LLC, 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.

With this, the company abandoned a lengthy quest for a DOE loan guarantee. To date, Diamond Green Diesel was the only bioenergy project in the six years of the DOE Loan Guarantee program that had proceeded as far as a conditional loan guarantee commitment.

Randall C. Stuewe, Chairman and CEO of Darling, said, “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.” A Digest reader commented, “This news may not bode well for other DOE biofuels Applicants moving towards Conditional Commitments, as this deal was perceived as a very strong credit.  Maybe DOE is being much too hard on its applicants.”