2025 Valero Report on Guiding Principles - Flipbook - Page 11
Introduction
Safety
Environment
Community
People
Governance
Appendix
Renewable Diesel, Renewable
Naphtha and Renewable Propane
A drop-in fuel interchangeable with petroleum diesel,
our renewable diesel is manufactured primarily
from waste feedstocks, including used cooking oil,
recycled animal fats and inedible corn oil, as well as
other feedstocks such as soybean oil. These feedstocks
are pretreated and puri昀椀ed prior to conversion into
renewable diesel and specialty grades, such as
renewable arctic diesel.
Renewable diesel reduces life cycle
GHG emissions by up to 80%, compared
with traditional diesel. 2
Valero is the world’s second-largest renewable diesel
producer and currently operates two renewable diesel
plants located in St. Charles Parish, Louisiana, and Port
Arthur, Texas, with a total annual production capacity
of 1.2 billion gallons of renewable diesel and 50 million
gallons of renewable naphtha.
Renewable naphtha and renewable propane are
produced in the process and recovered as coproducts. With an annual production capacity of
50 million gallons, renewable naphtha can be used
as a gasoline blendstock or a feedstock for producing
low-carbon petrochemicals.
Renewable propane has multiple end uses, including
as a low-carbon fuel, a renewable petrochemical
feedstock or a feedstock in the production of lowcarbon hydrogen. Currently, renewable propane from
our renewable diesel plants is co-processed in the
hydrogen plants at two of our re昀椀neries to generate
low-carbon hydrogen.
In 2024, New York City announced that
the city's entire 昀氀eet of more than 12,500
heavy-duty and off-road vehicles had
completed a transition to renewable
diesel, making New York City the 昀椀rst
major East Coast city to implement this
technology at such a large scale. An
estimated 162 million pounds of global
carbon dioxide emissions would be
prevented from entering the air every
year. DGD is supplying the renewable
diesel to support this effort through a
multi-year contract with Approved Oil,
who was awarded the contract with
New York City DCAS in 2023.
We are also co-processing renewable natural
gas from municipal solid waste in the hydrogen
plant at one of our re昀椀neries. The low-carbon
hydrogen is used in the production of lower carbon
transportation fuels for export to Europe. This fuel has
a higher market value compared with petroleum
fuels, and certain governments in Europe use it to
help meet GHG emissions reduction targets or goals.
In 2024, we processed approximately 2.6 trillion BTUs
of renewable natural gas, which is nearly three times
the amount processed in 2022.
Ethanol
Ethanol is a low-carbon, high-octane fuel. When used as a gasoline
blendstock, ethanol boosts the octane rating of the 昀椀nished fuel.
Valero operates 12 ethanol plants located in the U.S. Midwest, with a
combined production capacity of 1.7 billion gallons per year. The plants are
dry mill facilities that process corn to produce ethanol and co-products, such
as dry distillers grains (DDGs), syrup for livestock feed and inedible corn oil.
DDGs and syrup are sources of supplemental energy and protein for livestock
and poultry.
Ethanol offers at
least 30% lower life
cycle GHG emissions,
compared with
petroleum gasoline. 2
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