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 secure additional low-carbon feedstocks, bolstering its capacity to produce renewable diesel and expand into the rapidly growing sustainable aviation fuel (SAF) market.
The company's strategic advantage lies in its Diamond Green Diesel (DGD) joint venture with Valero Energy, which combines Darling's low-cost feedstock supply with Valero's refining expertise to be a leading low-cost producer of renewable fuels.
Darling is well-positioned to capitalize on favorable regulatory environments, including state-level Low Carbon Fuel Standard (LCFS) programs and federal legislation, which offer significant tax credits and incentives for sustainable fuel production.

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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.