US renewable diesel major Diamond Green Diesel (DGD)’s new sustainable aviation fuel (SAF) plant in Port Arthur, Texas, is still expected to begin production in the fourth quarter of this year, Lane Riggs, Valero Energy’s chief executive officer and president, said during a second-quarter 2024 earnings conference call on Thursday July 25.

DGD is a 50:50 joint venture between Valero and Darling Ingredients. The new SAF facility will have a capacity of 250 million gallons per year. With its start-up, DGD will become one of the largest producers of SAF globally, Riggs said.

DGD will consider building a second SAF plant in 2025 should margins prove favorable.

SAF — an alternative to petroleum jet fuel — is produced from agricultural and waste feedstocks and is consumed in blends with petroleum jet fuel.

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