DGD, IMTT Sign Agreement

OAKHURST, N.J. (DTN) --- Darling Ingredients Inc. on Tuesday 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 DGD access and use of the St. Rose IMTT Terminal as a logistics hub for its existing and expanding renewable diesel facility located in Norco, Louisiana.

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 barrels (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 discussing 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.

(BM/CZ)