2,000 construction jobs needed for pair of projects
After receiving federal backing in the form of a $241 million loan guarantee, Valero will move forward with plans to build a renewable diesel plant at their Norco refinery.
Coupled with a $1.2 billion upgrade the company announced a few years ago, that means that Valero plans to spend around $1.5 billion to improve the Norco site while creating high paying, permanent jobs in the process.
Valero will also need close to 2,000 construction workers to build both facilities.
The renewable, or green diesel plant is a joint venture between Valero and Darling International Inc. When completed, the facility will have the capacity to produce 137 million gallons of green diesel per year.
The company estimates that the project will create 700 jobs during peak construction and 50 permanent jobs during operation.
Valero’s $1.2 billion upgrade includes the addition of a hydrocracker, and will create around 30 permanent jobs when completed, according to plant spokesman Ron Guillory. A hydrocracker uses heat, pressure and catalyst to extract fuel from vacuum gas, a by-product of the refining process.
Guillory said that around 1,200 construction workers will be needed for the upgrade.
The green diesel plant will produce fuel primarily from animal fats and used cooking oil, which will reduce greenhouse gases by more than 80 percent over conventional petroleum-based diesel.
Darling International will provide the cooking oil and animal fats.
In addition, the facility will fulfill almost 14 percent of a national mandate to boost production for biomass-based diesel. Approximately 95 percent of the project components are expected to be produced in the United States.
The project will be the first of its kind in the U.S. to use an innovative hydrotreating/isomerization process from Universal Oil Products that is known as Ecofining and a pretreatment process from Desmet Ballestra Group, which converts processed animal fats into high-quality diesel.
“With these two projects, Valero will spend more than $1.5 billion from 2010 until 2012, and that’s great news for the local economy,” Corey Faucheux, the director of economic development for St. Charles Parish, said. “This will create around 2,000 construction jobs and will create about 80 high paying, permanent jobs.”
Faucheux said while Valero is investing in the future of their Norco site with these two projects, they are also investing in the future of St. Charles Parish.
“This is really going to make the Norco site a valuable asset to Valero for many, many years to come,” he said.
The two projects should also provide a boost in tax revenue, Faucheux said.
“The taxes generated by these projects should help mitigate the effects of the declining revenue received by the taxing authorities over the past reporting periods.”
Faucheux also added that other businesses, such as restaurants, hotels, and industrial services companies should also realize positive economic gains from Valero’s investments.
The green diesel project will have a national impact as well.
“This announcement by the Department of Energy demonstrates the dedication of the Obama Administration to building a robust, domestic renewable fuels industry,” said Agriculture Secretary Tom Vilsack. “Made-in-America biofuels will increase our energy security, economic security and environmental security – while creating jobs – and help build a brighter future for all Americans.”
Valero plans to begin construction of the green diesel plant this year.
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