(Reuters) - U.S. refiner Valero Energy Corp VLO.N posted better-than-expected third-quarter results on Thursday as fuel demand recovered after a sharp cut earlier in the year due to the COVID-19 pandemic that hurt travel. The company said refining throughput, or the amount of crude it processed, averaged 2.5 million barrels per day (bpd), an improvement of 200,000 bpd from the prior quarter as demand for gasoline, diesel and jet fuel recovered in step with global economies opening up. Valero slightly lowered its investment budget for the year, but raised its bet on the future of renewable diesel by allocating a larger portion of planned expenses to such projects. Investor clamor for clean energy, coupled with the slump in demand for gasoline, has pushed refiners to accelerate plans for retrofitting facilities to produce so-called renewable diesel, which is made from used cooking oil, among other things, and burns cleaner than conventional diesel. The company said it now expects to invest around 40% of its growth capital this year and next towards expansion of the renewables business. It had allocated 30% at the end of the second quarter. Valero’s capital investments for 2020 and 2021 are expected to total $2 billion, down from $2.1 billion for 2020 that it forecast in July. Adjusted net loss of $1.16 per share for the three months ended Sept. 30 was below analysts’ average estimate of $1.49, according to Refinitiv IBES data. Valero, which kicked off refining earnings for the quarter, said revenue fell to $15.81 billion from $27.25 billion a year earlier, but was still above Wall Street’s estimate of $15.60 billion.