IRVING, Texas, Jan. 31, 2023 /PRNewswire/ -- Darling Ingredients
Inc. (NYSE: DAR) and Valero Energy Corporation (NYSE: VLO), today
announced that the companies have made the final investment
decision on a Sustainable Aviation Fuel (SAF) project at the
Diamond Green Diesel (DGD) Port
Arthur plant, which is owned and operated by Diamond Green
Diesel Holdings LLC, a 50/50 joint venture between Valero and
Darling.
Upon completion of the project, which is expected in 2025, 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. The project's estimated cost is
approximately $315 million, with half
of that attributable to Darling Ingredients. With the completion of
this project, DGD is expected to be one of the largest SAF
manufacturers in the world.
"As one of the largest and most-successful producers of
renewable diesel for nearly a decade, it's exciting to enter the
next phase of our growth in the aviation market,"
said Chairman and CEO Randall C.
Stuewe. "Darling Ingredients' global supply chain of waste
fats and oils, combined with our partner's operational and
technical expertise, position us as a leader in decarbonization
solutions."
About Darling Ingredients
Darling Ingredients Inc.
(NYSE: DAR) is the largest publicly traded company turning edible
by-products and food waste into sustainable products and a leading
producer of renewable energy. Recognized as a sustainability
leader, the company operates more than 270 facilities in 17
countries and repurposes approximately 15% of the world's meat
industry waste streams into value-added products, such as green
energy, renewable diesel, collagen, fertilizer, animal proteins and
meals, and pet food ingredients. To learn more, visit
darlingii.com. Follow us on LinkedIn.
Cautionary Statements Regarding Forward-Looking
Information:
This media release contains "forward-looking"
statements regarding the business operations and prospects of
Darling Ingredients Inc. and industry factors affecting it. These
statements are identified by words such as "believe," "anticipate,"
"expect," "estimate," "intend," "could," "may," "will," "should,"
"planned," "potential," "continue," "momentum," "combined adjusted
EBITDA guidance" and other words referring to events that may occur
in the future. These statements reflect Darling Ingredient's
current view of future events and are based on its assessment of,
and are subject to, a variety of risks and uncertainties beyond its
control, each of which could cause actual results to differ
materially from those indicated in the forward-looking
statements. These factors include, among others, existing and
unknown future limitations on the ability of the Company's direct
and indirect subsidiaries to make their cash flow available to the
Company for payments on the Company's indebtedness or other
purposes; global demands for bio-fuels and grain and oilseed
commodities, which have exhibited volatility, and can impact the
cost of feed for cattle, hogs and poultry, thus affecting available
rendering feedstock and selling prices for the Company's products;
reductions in raw material volumes available to the Company due to
weak margins in the meat production industry as a result of higher
feed costs, reduced consumer demand or other factors, reduced
volume from food service establishments, or otherwise; reduced
demand for animal feed; reduced finished product prices, including
a decline in fat and used cooking oil finished product prices;
changes to worldwide government policies relating to renewable
fuels and greenhouse gas("GHG") emissions that adversely affect
programs like the U.S. government's renewable fuel standard, low
carbon fuel standards ("LCFS") and tax credits for biofuels both in
the United States and abroad;
possible product recall resulting from developments relating to the
discovery of unauthorized adulterations to food or food additives;
the occurrence of 2009 H1N1 flu (initially known as "Swine Flu"),
Highly pathogenic strains of avian influenza (collectively known as
"Bird Flu"), severe acute respiratory syndrome ("SARS"), bovine
spongiform encephalopathy (or "BSE"), porcine epidemic diarrhea
("PED") or other diseases associated with animal origin in
the United States or elsewhere,
such as the outbreak of African Swine Fever ("ASF") in China and elsewhere; the occurrence of
pandemics, epidemics or disease outbreaks, such as the current
COVID-19 outbreak; unanticipated costs and/or reductions in raw
material volumes related to the Company's compliance with the
existing or unforeseen new U.S. or foreign (including, without
limitation, China) regulations
(including new or modified animal feed, Bird Flu, SARS, PED, BSE,
ASF or similar or unanticipated regulations) affecting the
industries in which the Company operates or its value added
products; risks associated with the DGD Joint Venture, including
possible unanticipated operating disruptions and issues relating to
the announced capital project; risks and uncertainties relating to
international sales and operations, including imposition of
tariffs, quotas, trade barriers and other trade protections imposed
by foreign countries; difficulties or a significant disruption in
our information systems or failure to implement new systems and
software successfully, risks relating to possible third party
claims of intellectual property infringement; increased
contributions to the Company's pension and benefit plans, including
multiemployer and employer-sponsored defined benefit pension plans
as required by legislation, regulation or other applicable U.S. or
foreign law or resulting from a U.S. mass withdrawal event; bad
debt write-offs; loss of or failure to obtain necessary permits and
registrations; continued or escalated conflict in the Middle East, North
Korea, Ukraine or
elsewhere, including the Russia-Ukraine war; uncertainty regarding the exit of
the U.K. from the European Union; and/or unfavorable export or
import markets. These factors, coupled with volatile prices for
natural gas and diesel fuel, climate conditions, currency exchange
fluctuations, general performance of the U.S. and global economies,
disturbances in world financial, credit, commodities and stock
markets, and any decline in consumer confidence and discretionary
spending, including the inability of consumers and companies to
obtain credit due to lack of liquidity in the financial markets,
among others, could cause actual results to vary materially from
the forward looking statements included in this release or
negatively impact the Company's results of operations. Among other
things, future profitability may be affected by the Company's
ability to grow its business, which faces competition from
companies that may have substantially greater resources than the
Company. The Company's announced share repurchase program may be
suspended or discontinued at any time and purchases of shares under
the program are subject to market conditions and other factors,
which are likely to change from time to time. Other risks and
uncertainties regarding Darling Ingredients Inc., its business and
the industries in which it operates are referenced from time to
time in the Company's filings with the Securities and Exchange
Commission. Darling Ingredients Inc. is under no obligation to (and
expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.
Darling Ingredients Contacts
Investors:
|
Suann
Guthrie
|
|
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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