Diamond Green Diesel, IMTT Ink Terminal Lease Agreement
OAKHURST, N.J. (DTN) --- Darling Ingredients Inc. today announced its joint
venture with Valero Energy Corporation, Diamond Green Diesel, has entered into
a long-term lease agreement with International-Matex Tank Terminals IMTT, which
will allow DDG access and use of the ST. Rose IMTT Terminal as a logistics hub
for its existing and expanding renewable diesel facility located in Norco,
IMTT will, pursuant to the agreement, construct two five-mile long pipelines
connecting its St. Rose, La., terminal with the DGD Norco, La., renewable
diesel facility. IMTT will also repurpose approximately 790,000 bbl of existing
storage capacity from heavy and residual petroleum service to storage of
renewable diesel feedstock and finished product as a part of the project. The
pipeline build and the storage capacity transition are expected to be in
service prior to the end of 2021, coinciding with the anticipated startup of
DGD's current 440 million gallon expansion project.
"We are extremely pleased to be working with IMTT. What is so often
overlooked when discussion the critical success components of renewable diesel
economics is the supply chain, which is both complicated and costly to manage,"
said John Bullock, EVP, chief strategy officer for Darling Ingredients. "Having
a world-class terminal like IMTT St. Rose accessible by pipeline with the
capability to receive feedstocks and ship product via multiple modes of
transport creates a significant competitive advantage for us."
He continued, "DGD has been a leader in the industry and developing a
sophisticated and flexible supply chain is a continuation of our leadership
position. We would not be in this business without a thorough plan that
provides for flexibility in raw material sourcing and finished product
marketing. This agreement places us in a position to economically source
renewable diesel feedstock while allowing us to supply the best markets for our
renewable diesel and naphtha."
IMTT is headquartered in New Orleans and is an industry leader in the
handling and storage of bulk liquid products through its ownership and
operation of 19 terminals throughout North America. The terminals handle
petroleum, biofuels, commodity/specialty chemicals and vegetable/tropical oil
products for customers including refiners, commodities traders and chemical
manufacturers and distributers.
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