Darling Ingredients to Sell $60M in Production Tax Credits

Darling Ingredients Inc. (NYSE: DAR) has revealed plans to sell approximately $60 million worth of production tax credits to a corporate buyer. The credits were generated through the company’s Diamond Green Diesel joint venture, under the Inflation Reduction Act (IRA). The proceeds from this sale are expected to be received by the end of 2025, provided certain funding conditions are met.

In an announcement made in September, the company disclosed that it had already sold $125 million in production tax credits, bringing the total projected credit sales for 2025 to $185 million.

Diamond Green Diesel Background

Diamond Green Diesel (DGD) is a joint endeavor between Darling Ingredients Inc. and Valero Energy Corporation, split evenly. Boasting a production capacity of over 1.2 billion gallons annually, DGD stands as one of the largest producers of renewable diesel and sustainable aviation fuel worldwide.

About Darling Ingredients

Darling Ingredients (NYSE: DAR) is acknowledged as a circularity pioneer, repurposing material from the animal agriculture and food sectors into valuable ingredients. These materials serve to nourish people, feed animals and crops, and provide the world with renewable energy. Darling Ingredients operates in over 260 facilities around the globe in more than 15 countries. It processes approximately 15% of the world’s animal agricultural by-products, manufactures roughly 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and ranks as one of the largest renewable energy producers. For more information, visit darlingii.com. Connect with us on LinkedIn.

Cautionary Statement Regarding Forward-Looking Information

This press release may contain “forward-looking statements” pertaining to the Company’s financial performance, plans, objectives, goals, strategies, future earnings, cash flow, and performance, among other non-historical data. When used in this release, words such as “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “will” and variants of these words or similar expressions are intended to identify these forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. However, the Company cannot guarantee that these expectations will be met or that these beliefs will prove correct. There are several risks and uncertainties that may cause actual results to deviate significantly from those expressed or implied by the forward-looking statements contained in this release. These include issues related to regulations, administration, and guidance associated with biofuel policies, including the Section 45Z Clean Fuel Production Credit, and risks linked to the qualification and sales of such credits, including but not limited to the failure to meet closing conditions to complete such sales. Numerous other factors, many of which are beyond the Company’s control, could also 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.