Valero's low-carbon fuel push: renewable diesel, SAF, and ethanol growth

Valero Energy is scaling up its cleaner transportation fuel business through renewable diesel, sustainable aviation fuel (SAF), and ethanol. Its Diamond Green Diesel joint venture has grown renewable fuel production from 160 million gallons per year in 2013 to about 1.2 billion gallons by early 2026, generating over $3 billion in cumulative EBITDA. Renewable diesel can cut greenhouse gas emissions by up to 80% while using existing fuel infrastructure. Valero's Port Arthur SAF project can convert up to 235 million gallons of renewable diesel into SAF annually, targeting returns above 25% after tax. The company also operates 12 ethanol plants producing 1.7 billion gallons per year. These investments position Valero to meet rising demand for lower-carbon fuels and low-carbon fuel standards, supporting long-term cash flow growth beyond traditional refining.