Darling Ingredients Inc. Announces Agreement to Bring First Regular Supply of Sustainable Aviation Fuel to Florida Through Diamond Green Diesel Joint Venture

Rhea-AI Summary

Darling Ingredients Inc. (NYSE: DAR) has announced that its joint venture, Diamond Green Diesel (DGD), will provide the first regular supply of sustainable aviation fuel (SAF) to Florida through an agreement between World Fuel and DHL Express. Over a two-year period, World Fuel Services will deliver approximately 60 million gallons of blended SAF, including 18 million gallons of neat SAF, produced by DGD from used cooking oil and food waste.

The SAF will have at least 80% lower lifecycle greenhouse gas emissions compared to conventional jet fuel and will be used for DHL Express's GoGreen Plus emission-reduced air transportation services. DGD's Port Arthur plant is expected to be capable of upgrading about 50% of its 470 million gallon annual production capacity to SAF by the fourth quarter of 2024, potentially making it one of the largest SAF manufacturers globally.

Positive

• Agreement to supply 60 million gallons of blended SAF to Florida over two years
• SAF production expected to have 80% lower lifecycle greenhouse gas emissions compared to conventional jet fuel
• DGD Port Arthur plant to upgrade 50% of its 470 million gallon annual production capacity to SAF by Q4 2024
• Potential to become one of the largest SAF manufacturers globally
• Expansion of DGD's SAF sales book and market reach

Negative

• None.

IRVING, Texas, Sept. 25, 2024 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR), the world's leading company turning food waste into sustainable products and producer of renewable energy, today announced that its 50/50 joint venture Diamond Green Diesel (DGD) will provide the first regular supply of sustainable aviation fuel (SAF) to Florida through an agreement between World Fuel and DHL Express.

Under the terms of the agreement, World Fuel Services (World Fuel), a World Kinect Company (NYSE: WKC) will deliver over a two-year period approximately 60 million gallons of blended SAF, of which 18 million gallons will be neat SAF (equaling approximately 227 million liters of blended SAF containing 68 million liters of neat SAF), and will be provided by Valero Marketing and Supply Company (Valero), a subsidiary of Valero Energy Corporation (NYSE: VLO). This agreement marks one of the first regular deliveries of blended SAF into the State of Florida. The neat SAF produced by Diamond Green Diesel, a joint venture between Valero and Darling Ingredients, will be produced from used cooking oil and food waste, certified by International Sustainability & Carbon Certification (ISCC) and have on average at least 80% lower lifecycle greenhouse gas emissions when compared to conventional jet fuel, which will be used to offer DHL Express customers emission-reduced air transportation services via DHL GoGreen Plus. Based on the "book and claim" approach, the SAF uplifted by DHL can be used by DHL's GoGreen Plus customers globally to reduce their CO2e emissions. The reductions achieved (Scope 3) are passed on to customers in the form of certificates. 

"As we continue expanding Diamond Green Diesel's SAF sales book, we're not only increasing market reach but also driving a meaningful shift toward a more sustainable energy landscape," said Randall C. Stuewe, Chairman and CEO. "We feel good about where we're headed — not just in growing our SAF contracts, but in the completion and startup of DGD's SAF operations, which remain on track for fourth quarter. DGD continues to be the lowest-cost, most profitable producer in the market, reinforcing our commitment to delivering both environmental and economic value."

With SAF expected to be on line during fourth quarter 2024, the DGD Port Arthur plant will have the capability to upgrade approximately 50 percent of its current 470 million gallon annual production capacity to SAF. With the completion of this project, DGD is expected to be one of the largest SAF manufacturers in the world.

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 plans, objectives, goals and strategies and other information that is not historical information.  When used in this release, the words "expects" and "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.  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.

Darling Ingredients Contacts

Investors:	Suann Guthrie
	Senior VP, Investor Relations, Sustainability & Communications
	(469) 214-8202; suann.guthrie@darlingii.com
Media:	Jillian Fleming
	Director, Global Communications
	(972) 541-7115; jillian.fleming@darlingii.com

 

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SOURCE Darling Ingredients Inc.

FAQ

What is the volume of SAF Darling Ingredients (DAR) will supply to Florida?

Darling Ingredients' joint venture, Diamond Green Diesel, will supply approximately 60 million gallons of blended SAF, including 18 million gallons of neat SAF, to Florida over a two-year period.

How much lower are the greenhouse gas emissions of Darling Ingredients' (DAR) SAF compared to conventional jet fuel?

The sustainable aviation fuel produced by Darling Ingredients' joint venture is expected to have at least 80% lower lifecycle greenhouse gas emissions compared to conventional jet fuel.

When is Darling Ingredients (DAR) expected to complete its SAF operations at the DGD Port Arthur plant?

Darling Ingredients expects to complete and start up its SAF operations at the Diamond Green Diesel Port Arthur plant in the fourth quarter of 2024.

What percentage of DGD's production capacity will be upgraded to SAF for Darling Ingredients (DAR)?

Approximately 50% of Diamond Green Diesel's current 470 million gallon annual production capacity at the Port Arthur plant will be upgraded to SAF production capability.