Diamond Green RD plant lacks power for restart

Diamond Green Diesel cannot predict when it will restart the largest US renewable diesel (RD) plant until power cut by Hurricane Ida is restored.

The 19,000 b/d Norco, Louisiana, facility remained under "a thorough assessment" following Hurricane Ida, joint venture partner Darling Ingredients said.

"Power restoration is key to being able to comment further on when the plant could be restarted," the company said today.

Ida devastated electrical infrastructure in the New Orleans region when it roared ashore on 29 August with winds exceeding 150 mph (241 kph). The storm downed all eight of the region's major electrical transmission lines, knocking over 2,000 miles of electric transmission infrastructure. Service began returning to parts of New Orleans early yesterday, but officials warn it could take weeks to fully restore electricity to the region. Inundating rains meanwhile flooded homes, refineries and other sites along the Mississippi river.

Renewable Energy Group has not commented on the status of its roughly 5,000 b/d renewable diesel plant in Geismar, further west of New Orleans.

Diamond Green continues to work with suppliers, logistics services and utilities on assessments. Conditions must also improve for employees, who may still face power, water and sewer outages as well as their own personal property damage, the company added.

Renewable diesel is an increasingly lucrative fuel that moves seamlessly in existing petroleum infrastructure and can be used without limit by current vehicle fuel systems. The fuel generates credits needed to comply with US Renewable Fuel Standard mandates as well as low carbon fuel standards in California and Oregon.

Demand for the fuel has attracted refinery conversions that could drive up renewable diesel supplies over the next four years and drive down costs to comply with those regulatory programs.

By Elliott Blackburn