Diamond Green Diesel, a joint venture between petrochemical and fuels company Valero and Darling Ingredients, a provider of sustainable products and fuels made from waste, announced the final  investment decision today to proceed with one of the world’s largest sustainable aviation fuel (SAF) facilities. The project is estimated to cost $315 million.

Sustainable aviation fuel is seen as one of the key tools to help decarbonize the aviation industry, which currently accounts for 2-3% of global greenhouse gas (GHG) emissions. SAF is generally produced from sustainable resources, like waste oils and agricultural residues. SAF producers estimate the fuels can result in lifecycle GHG emissions reductions of as much as 85% relative to conventional fuels.

Diamond Green Diesel combines Darling’s feedstock with Valero’s production and marketing logistics, to produce renewable fuels from recycled animal fats, used cooking oil and inedible corn oil.

The new project, at the company’s 470 million gallons per year renewable diesel plant near Valero’s Port Arthur, Texas refinery, will provide the plant with the capability to approximately half of its production capacity to SAF.

Joe Gorder, Valero’s Chairman and Chief Executive Officer, said:

“This project is a natural extension of our liquid fuels manufacturing expertise and demonstrates our growth strategy through innovation in renewables. Underpinned by strong interest from customers, sustainable aviation fuel provides an economic path to further reduce the carbon intensity of our products while expanding our long-term competitive advantage.”