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Released April 28, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As leading U.S. refiner Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) wraps up a delayed coker addition at one of its refineries, the company also is ramping up production of renewable diesel. In addition, Valero is preparing to reduce the carbon footprint of its ethanol production by being the anchor shipper on a carbon capture and sequestration (CCS) project. In the company's recent earnings-related conference call, Valero Chief Executive Officer Joe Gorder discussed the progress made by the company over the past few months and the direction it is heading in the future.
Among Valero's most significant accomplishments during the first quarter of 2023 was the completion of a delayed coker unit addition at the company's refinery in Port Arthur, Texas. Gorder said, "The Port Arthur coker project was completed in March and successfully started up in early April, which is a testament to the strength of our engineering and operations teams. The project is expected to increase the refinery's throughput capacity and ability to process incremental volumes of sour crude oils and residual feedstocks while also improving turnaround efficiency." The unit addition began in 2019. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for more details.
Valero also intends to upgrade the other delayed coker unit at the Port Arthur refinery by modifying the fractionation column and performing other equipment upgrades to improve sour crude oil flexibility. The project is set to occur early next year. Subscribers can click here for the full report.
Completed late last year through its Diamond Green Diesel (DGD) joint venture was a renewable diesel production unit in Port Arthur. "Our renewable diesel segment set another sales volume record in the first quarter with the continued ramp-up of DGD Port Arthur," said Gorder. Construction of the plant began in 2021, and the facility is in the process of ramping up to 470 million gallons per year of renewable diesel production and 40 million gallons per year of renewable naphtha. Subscribers to Industrial Info's Alternative Fuels Project Database can click here for more information.
But Valero isn't done with the plant. Earlier this year, the company announced plans to produce sustainable aviation fuel there. Gorder said, "The DGD Port Arthur will have the capability to upgrade approximately 50% of its current 470 million-gallon annual renewable diesel capacity to sustainable aviation fuel, or SAF. The project is expected to be completed in 2025 and is estimated to cost approximately $315 million... With the completion of this project, DGD is expected to be one of the largest manufacturers of SAF in the world." Subscribers can click here for the project announcement.
With the SAF project probably kicking off this year, Valero also is taking steps to lower the carbon footprint of its ethanol production in the Midwestern U.S. through a CCS project of BlackRock Incorporated (NYSE:BLK) (New York, New York) and Navigator Energy Services LLC (Dallas, Texas). Gorder spoke of the project's progress: "In the ethanol segment, BlackRock and Navigator's carbon sequestration project is progressing, and they expect to begin startup activities in late 2024. We expect to be the anchor shipper, with eight of our plants connected to this system, which will allow us to product a lower carbon-intensity ethanol product and significantly improve the margin profile and competitive positioning of our ethanol business." Subscribers can click here for the related reports.
Valero reported that operating income across all three of its business segments, Refining, Renewable Diesel and Ethanol, rose, with the bulk of this coming from the Refining segment, which saw $4.1 billion in operating income in first-quarter 2023, compared with $1.5 billion in first-quarter 2022. The company's Renewable Diesel segment reported operating income of $205 million, compared with $149 in the prior year, while the Ethanol segment saw income of $39 million, compared with $1 million in the first quarter of last year.
Refining throughput volumes averaged 2.9 million barrels per day in the first quarter, with the facilities operating at a 93% capacity utilization rate.
Valero reported first-quarter 2023 net income of $3.1 billion, compared with $905 million in the first quarter of last year.
Subscribers can click here for a look at the reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Among Valero's most significant accomplishments during the first quarter of 2023 was the completion of a delayed coker unit addition at the company's refinery in Port Arthur, Texas. Gorder said, "The Port Arthur coker project was completed in March and successfully started up in early April, which is a testament to the strength of our engineering and operations teams. The project is expected to increase the refinery's throughput capacity and ability to process incremental volumes of sour crude oils and residual feedstocks while also improving turnaround efficiency." The unit addition began in 2019. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for more details.
Valero also intends to upgrade the other delayed coker unit at the Port Arthur refinery by modifying the fractionation column and performing other equipment upgrades to improve sour crude oil flexibility. The project is set to occur early next year. Subscribers can click here for the full report.
Completed late last year through its Diamond Green Diesel (DGD) joint venture was a renewable diesel production unit in Port Arthur. "Our renewable diesel segment set another sales volume record in the first quarter with the continued ramp-up of DGD Port Arthur," said Gorder. Construction of the plant began in 2021, and the facility is in the process of ramping up to 470 million gallons per year of renewable diesel production and 40 million gallons per year of renewable naphtha. Subscribers to Industrial Info's Alternative Fuels Project Database can click here for more information.
But Valero isn't done with the plant. Earlier this year, the company announced plans to produce sustainable aviation fuel there. Gorder said, "The DGD Port Arthur will have the capability to upgrade approximately 50% of its current 470 million-gallon annual renewable diesel capacity to sustainable aviation fuel, or SAF. The project is expected to be completed in 2025 and is estimated to cost approximately $315 million... With the completion of this project, DGD is expected to be one of the largest manufacturers of SAF in the world." Subscribers can click here for the project announcement.
With the SAF project probably kicking off this year, Valero also is taking steps to lower the carbon footprint of its ethanol production in the Midwestern U.S. through a CCS project of BlackRock Incorporated (NYSE:BLK) (New York, New York) and Navigator Energy Services LLC (Dallas, Texas). Gorder spoke of the project's progress: "In the ethanol segment, BlackRock and Navigator's carbon sequestration project is progressing, and they expect to begin startup activities in late 2024. We expect to be the anchor shipper, with eight of our plants connected to this system, which will allow us to product a lower carbon-intensity ethanol product and significantly improve the margin profile and competitive positioning of our ethanol business." Subscribers can click here for the related reports.
Valero reported that operating income across all three of its business segments, Refining, Renewable Diesel and Ethanol, rose, with the bulk of this coming from the Refining segment, which saw $4.1 billion in operating income in first-quarter 2023, compared with $1.5 billion in first-quarter 2022. The company's Renewable Diesel segment reported operating income of $205 million, compared with $149 in the prior year, while the Ethanol segment saw income of $39 million, compared with $1 million in the first quarter of last year.
Refining throughput volumes averaged 2.9 million barrels per day in the first quarter, with the facilities operating at a 93% capacity utilization rate.
Valero reported first-quarter 2023 net income of $3.1 billion, compared with $905 million in the first quarter of last year.
Subscribers can click here for a look at the reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
