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 waste fats and greases, crucial feedstock for renewable fuels.
This strategic acquisition is aimed at enabling Darling to aggressively pursue the rapidly growing sustainable aviation fuel (SAF) market through its Diamond Green Diesel (DGD) joint venture.
Favorable government policies and tax credits, such as California's Low Carbon Fuel Standard (LCFS) and potential federal incentives, are providing significant tailwinds for Darling's entry and expansion in the SAF sector.

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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.