US renderer Darling Ingredients announced on 25 February that its Diamond Green Diesel (DGD) joint venture with Valero Energy had entered into a long-term lease agreement with bulk liquid handler International-Matex Tank Terminal (IMTT).

“The agreement will allow DGD access and use of the St Rose IMTT terminal as a logistics hub for DGD’s existing and expanding renewable diesel facility in Norco, Louisiana,” Darling Ingredients said.

As part of the agreement, IMTT will build two 8km long pipelines connecting its St Rose terminal with DGD’s Norco facility. IMTT will also repurpose approximately 790,000 barrels of existing storage capacity from heavy and residual petroleum service to storage of renewable diesel feedstock and finished product. The work is expected to be completed before the end of 2021, coinciding with the planned start-up of DGD’s current 400M gallon (1.52M tonne) expansion project.

Speaking about the agreement, John Bullock, executive vice president and chief strategy officer for Darling Ingredients, said: “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.

“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.”

Headquartered in Irving, Texas, Darling Ingredients collects and processes animal by-products such as edible fats, yellow grease and gelatine, as well as used cooking oil, into food, fuel, pet food, pharmaceutical and fertiliser ingredients.

IMTT has its headquarters in New Orleans, Louisiana and handles and stores bulk liquid products through its ownership and operation of 19 terminals in North America.