The U.S. Department of Energy has backed Valero Energy (NYSE:VLO)’s renewable diesel project.

Valero Energy (NYSE:VLO) Full Approval

The U.S. Department of Energy has approved a $241 million loan guarantee to Diamond Green Diesel LLC, a joint venture of Valero Energy (NYSE:VLO) Corp. and Darling International Inc., to build a 137 million gallon per year renewable diesel facility in the New Orleans area.

San Antonio-based Valero Energy (NYSE:VLO) will design, construct and operate the facility and market the diesel.

Darling will supply old animal fat, used cooking oil and other forms of grease to the facility, which will serve as a feedstock.

Valero Energy (NYSE:VLO) stocks were at 24.41 at the end of the last day’s trading. There’s been a 36.7% change in the stock price over the past 3 months.