Darling Ingredients Announces Agreement to Sell Approximately $60 Million in Production Tax Credits

Key Terms

production tax credits financial

Production tax credits are financial incentives offered to support the development of certain energy projects, such as renewable power sources. They provide a dollar amount for each unit of energy produced, helping to reduce the project's overall costs. For investors, these credits can improve the project's profitability and attractiveness by making renewable energy investments more financially appealing.

Inflation Reduction Act (IRA) regulatory

The Inflation Reduction Act (IRA) is a law aimed at lowering overall prices and controlling the cost of living by promoting cleaner energy and making healthcare more affordable. For investors, it signals potential growth opportunities in industries like renewable energy and healthcare, as well as changes in government spending that can influence economic stability and market trends.

Diamond Green Diesel technical

Diamond Green Diesel is a type of renewable fuel made from plant-based oils and waste fats, processed to produce a clean-burning diesel substitute. Its importance to investors lies in its potential to reduce reliance on fossil fuels, lower greenhouse gas emissions, and meet increasing demand for sustainable energy sources. As a greener alternative, it can influence energy markets and support efforts toward environmental responsibility.

joint venture financial

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

IRVING, Texas--(BUSINESS WIRE)-- Darling Ingredients Inc. (NYSE: DAR) today announced an agreement to sell approximately $60 million of production tax credits to a corporate buyer. These credits were generated under the Inflation Reduction Act (IRA) by the company’s Diamond Green Diesel joint venture. The proceeds of the sale are scheduled to be received by Dec. 31, 2025, upon satisfaction of certain funding conditions.

The company previously announced in September that it sold $125 million in production tax credits, bringing the total of production credit sales to $185 million for 2025.

About Diamond Green Diesel

Diamond Green Diesel (DGD) is a 50/50 joint venture between Darling Ingredients Inc. and Valero Energy Corporation. With capacity to produce more than 1.2 billion gallons annually, DGD is one of the world’s largest producers of renewable diesel and sustainable aviation fuel.

About Darling Ingredients

A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world’s animal agricultural by-products, produces about 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit darlingii.com. Follow us on LinkedIn.

Cautionary Statements Regarding Forward-Looking Information:

This release may contain “forward-looking statements,” which include information concerning the Company’s financial performance, plans, objectives, goals, strategies, future earnings, cash flow, performance and other information that is not historical information. When used in this release, the words “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “will” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the forward-looking statements contained in this release. These include issues related to administration, guidance and/or regulations associated with biofuel policies, including the Section 45Z Clean Fuel Production Credit, and risks associated with the qualification and sales of such credits, including without limitation failure to satisfy closing conditions to complete such sales. Numerous other factors, many of which are beyond the Company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those that are discussed in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.

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Darling Ingredients Contacts

Media:

Jillian Fleming

Director, Global Communications

(972) 541-7115; jillian.fleming@darlingii.com



Investors:

Suann Guthrie

Senior VP, Investor Relations, Sustainability & Communications

(469) 214-8202; suann.guthrie@darlingii.com

Source: Darling Ingredients Inc.