2026 Valero Report on Guiding Principles - Report - Page 5
Introduction
Safety
Environment
Employees
Community
Governance
Appendix
Low-Carbon Innovation
The world continues calling for low-carbon alternatives … Valero keeps
answering the call!
For Valero, investments in low-carbon fuels that began in 2009 have provided an advantage for the company to
capture market opportunities. As of December 31, 2025, we have invested $6 billion in our low-carbon businesses.
Our low-carbon growth projects have been held to the same minimum after-tax internal rate of return (IRR)
as our re昀椀ning growth projects, creating value for stockholders while contributing to greenhouse gas (GHG)
emissions reductions in the transportation sector.
Renewable Diesel, Renewable Naphtha and Renewable Propane
A drop-in fuel interchangeable with traditional diesel, our renewable diesel is
manufactured primarily from waste feedstocks, including used cooking oil,
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.
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.
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 plastics.
Renewable
diesel reduces
life cycle GHG
emissions by
up to 80%,
compared
with traditional
diesel.2
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.
Sustainable Aviation Fuel (SAF)
Made with feedstocks used in the renewable diesel process, synthetic paraf昀椀nic
kerosene (SPK), or neat SAF, is a non-petroleum-based fuel. Blending SPK and
traditional jet fuel results in blended SAF, and current fuel speci昀椀cations allow SPK
to be blended up to 50%3 with traditional jet fuel for use in an aircraft. Blended
SAF is a drop-in fuel for existing aircraft and infrastructure.
Our large-scale SAF production project at the Port Arthur, Texas, plant was
successfully completed in the fourth quarter of 2024 and is now fully operational.
The project provides the plant the optionality to upgrade approximately 50% of
its current 470 million-gallon renewable diesel annual production capacity to
neat SAF.
Neat SAF can
lower life cycle
GHG emissions by
up to 80%, 2 when
compared with
conventional jet fuel.
Valero Report on Guiding Principles •
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