Diamond Green Diesel, a green joint venture between Valero subsidiary Diamond Alternative Energy and Darling International, has commenced production of bio-diesel at its 9,300 barrel-per-day plant.

The plant produces renewable fuel by processing recycled animal fat and used cooking oil as well as corn oil. The fuel can be shipped by pipeline and meets low-carbon fuel standards.

Darling International chairman and chief executive officer Randall Stuewe said that the company is delighted with the mechanical completion and startup of Diamond Green Diesel plant.

"This joint venture will be a producer of high quality renewable diesel capable of fulfilling the RFS2 biomass-based diesel mandate. Our partnership with Valero will benefit Diamond Green Diesel through multiple operational synergies," added Stuewe.

Besides biodiesel plant, Valero also owns 16 refineries, 10 ethanol plants and a 50MW wind farm.