ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT • 13 Low-carbon Hydrogen Hydrogen is important in refinery operations as it is used to lower the sulfur content of fuels. Low-carbon hydrogen has become a critical technology in the various decarbonization pathways. In part due to the acceleration of renewable energy and carbon sequestration, studies around scalability of this technology show how quickly the industry is moving to reach parity with current technologies. Valero intends to use low-carbon hydrogen, produced from renewable propane, to reduce the amount of fossil-fuel- derived hydrogen used in renewable diesel production. At our Corpus Christi refinery, we use renewable natural gas from municipal solid waste to produce low-carbon transportation fuels. We expect to process nearly 1 million BTUs of renewable natural gas in 2022 and nearly 3.7 million BTUs of renewable natural gas in 2023. These resulting low-carbon transportation fuels are valued at a premium and are exported to Europe to meet certain GHG emission reduction goals. Renewable Naphtha Renewable naphtha is already produced at Valero’s renewable diesel plants. Renewable naphtha is a gasoline blending component that lowers the carbon intensity of gasoline. It can also be used in plastic production, resulting in low-carbon plastics. Renewable naphtha can also be used in the production of low-carbon hydrogen. Valero is supporting Southwest Research Institute (SwRI) in the development of a solid filtration membrane to remove CO 2 from the exhaust tailpipe of internal combustion engine vehicles. The objective of this revolutionary technology is to reduce CO 2 emissions in the atmosphere with an affordable solution that lowers life cycle GHG emissions. In concept, applying this technology to vehicles running on low-carbon fuels would result in net negative life cycle carbon emissions, exceeding the performance of any competing technology (including EVs and hydrogen fuel cells). SUSTAINABLE AVIATION FUEL LOW-CARBON HYDROGEN RENEWABLE PROPANE RENEWABLE NAPHTHA FIBER CELLULOSIC ETHANOL TAILPIPE CO 2 ON BOARD CAPTURE CARBON CAPTURE AND STORAGE Preliminary testing of this system passively removes more than 90% of the expected CO 2 emissions of the vehicle. Tailpipe CO 2 Onboard Capture System RENEWABLE DIESEL