Darling Ingredients Acquires Valley Protein in Move to Target SAF market

Deal gives sustainable energy company low-carbon feedstock that could be used to make sustainable aviation fuel.

Wednesday, December 29, 2021 at 04:42 PM ET

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Darling Ingredients converts food waste into ingredients that can be used for nutrition and sustainable energy. [Courtesy: Darling Ingredients]

Key Takeaways:

Darling Ingredients acquired Valley Proteins for $1.1 billion to expand its supply of low-carbon feedstock (waste fats and greases), aiming to increase renewable diesel production and enter the sustainable aviation fuel (SAF) market.
The company plans to leverage its Diamond Green Diesel (DGD) joint venture with Valero to produce SAF, with future plants like DGD IV being considered for aviation fuels, capitalizing on its strong feedstock supply chain.
Darling is strategically positioned to benefit from favorable government policies and tax credits, including state-level Low Carbon Fuel Standard (LCFS) programs and federal support, which are highly beneficial for SAF producers.

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Darling Ingredients (NYSE: DAR), a Texas-based company that collects and converts food waste into ingredients that can be used for nutrition and sustainable energy, announced Wednesday that it has acquired Virginia-based Valley Proteins for $1.1 billion in cash.

Darling hopes this move will finally help it to pursue the sustainable aviation fuel (SAF) market as chairman and chief executive officer, Randall C. Stuewe pointed out in a statement.