Valero sells first SAF batch from DGD Texas facility

US-based fuels produced Valero announced that it has sold the first batch of sustainable aviation fuel (SAF) during the last quarter of 2024.

The company began operations at its Diamond Green Diesel Port Arthur facility in Texas during the fourth quarter. The project gives the plant optionality to upgrade approximately 50% of its current 470 MMgy production capacity to SAF. 

“The DGD Sustainable Aviation Fuel project was successfully started up in the fourth quarter and is now fully operational,” said Lane Riggs, president, Valero Energy while delivering the fourth quarterly statement accompanying the results.

“We had about 10,000 barrels a day of Renewable Diesel from Port Arthur that was going to our wholesale channel that we were selling. That material is now going to produce sustainable aviation fuel. So, that’s a chunk in the year-over-year decline in diesel sales. In addition to that, we saw the same dynamic on diesel with some of the snow impacting on-road diesel demand,” added Gary Simmons, chief operating officer, Valero.

However, the company refuse to delve into the details surrounding their plans for 2024 with regards to the targeted SAF production.