Valero Energy Corporation has recently announced its second-quarter financial results, highlighting significant achievements in renewable diesel production and the sale of its ethanol plant in Jefferson, Wisconsin.

The company's renewable diesel segment, which includes the Diamond Green Diesel joint venture, reported operating income of $152 million for Q2 2022, a decrease from $248 million in the same period last year. However, renewable diesel sales volumes showed a substantial increase, averaging 2.2 million gallons per day, compared to 0.9 million gallons per day in Q2 2021. This growth can be attributed to the successful expansion project at the St. Charles refinery in Norco, Louisiana, which began operations in Q4 2021.

During an earnings call, Valero CEO Joe Gorder provided updates on the DGD project at the Port Arthur refinery in Texas, stating that it is expected to be operational in Q4 2022. DGD Expects to Increase Annual Production Capacity with New Facility, Targeting 1.2 billion Gallons of Renewable Diesel and 50 million Gallons of Renewable Naphtha. Valero's ethanol segment also demonstrated strong performance, reporting operating income of $101 million for Q2 2022, compared to $99 million in the same period last year. However, adjusted operating income, excluding the gain from the sale of the Jefferson ethanol plant, was $79 million.

As per filings with the US Securities and Exchange Commission (SEC), in June 2022, Valero confirmed the sales of Jefferson ethanol plant for $32 million. The decision to divest the plant was made after a thorough evaluation, initiated in Q3 2021, determined that it was no longer strategically aligned with Valero's ethanol business goals. Operations at the Jefferson plant had been temporarily halted in 2020 due to reduced demand caused by the COVID-19 pandemic and were permanently ceased following the evaluation.

The company maintained ethanol production volumes of 3.9 million gallons per day during Q2 2022, which is expected to continue into Q3.

Gorder also mentioned the progress of BlackRock and Navigator's carbon sequestration project, in which Valero plays a key role as the anchor shipper. The project remains on schedule and is projected to begin startup activities in late 2024. This initiative demonstrates Valero's commitment to environmental sustainability and reducing carbon emissions.

Overall, Valero reported impressive net income attributable to Valero stockholders of $4.7 billion, or $11.57 per share, for Q2 2022, compared to $162 million, or 39 cents per share, in Q2 2021.