Demand for transportation fuels has been strong due to the summer driving season and pent-up desire to travel. Valero continues to maximize production to help provide the essential products the world needs, while delivering our long-standing commitment to safe, reliable and environmentally responsible operations. Valero’s refinery utilization rate has increased from the pandemic low of 74% in the second quarter of 2020 to 94% in the second quarter of 2022.
Valero’s refining assets remain strong. Valero did not close or shut down any refineries during or following the COVID-19 pandemic nor does it have any current plans to reduce refining capacity. In fact, since 2015 Valero actually added approximately 300,000 barrels per day of capacity to make products that power our nation’s economy. The company also has a new 55,000 barrel per day coker unit under construction at its Port Arthur refinery that is expected to start up in the first half of 2023. These projects are part of Valero’s strategy to maintain its position as the most efficient producer of transportation fuels for the global market.
Over the last decade, Valero also has become a leading producer of low-carbon fuels. At the end of last year, its Diamond Green Diesel (DGD) joint venture expanded annual production capacity to 700 million gallons of renewable diesel and 30 million gallons of renewable naphtha, a lower carbon intensity gasoline blendstock and petrochemical feedstock. Right now, construction is underway on a new renewable diesel plant next to Valero’s Port Arthur refinery. This project was accelerated and is expected to be completed in the fourth quarter of this year, which will bring DGD’s total annual production capacity to 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha. Also, BlackRock and Navigator’s carbon capture and storage project that will connect with eight of Valero’s ethanol plants is progressing on schedule and is expected to begin startup activities in late 2024.
Looking ahead, Valero continues to evaluate other innovative low-carbon opportunities such as sustainable aviation fuel, low-carbon hydrogen, renewable propane, and additional renewable naphtha and carbon capture and storage projects.
These low-carbon projects are consistent with the company’s strategy to reduce and displace 63% of its global refinery Scope 1 and Scope 2 greenhouse gas emissions by 2025 and 100% by 2035.
Turning to the community, right now Valero Benefit for Children funds are being distributed from the $22 million raised at this year’s Valero Texas Open, including $1.5 million for San Antonio children’s charities. Valero’s companywide annual United Way campaign is also underway. This year’s campaign will add to the $237 million contributed to United Way partners in the communities where Valero has operations across the U.S. since 1980.
For these reasons and many more, Team Valero is building tomorrow through its actions right now.