Darling Ingredients Develops Sustainable Aviation Fuel Supply Chain
Darling Ingredients Inc. (NYSE: DAR), a leader in transforming food waste into sustainable products and renewable energy, is making significant strides in reducing carbon emissions within the aviation sector. Through its strategic partnership with Diamond Green Diesel (DGD), Darling Ingredients announced its commitment to supply sustainable aviation fuel (SAF) blended with conventional jet fuel for Chicago Midway International Airport.
A Sustainable Supply Agreement with Valero and Southwest Airlines
This agreement, formed with Valero Marketing and Supply Company, a subsidiary of Valero Energy Corporation (NYSE: VLO), along with Southwest Airlines Co. (NYSE: LUV), will initiate the purchase of a minimum of 3.6 million gallons of neat SAF. This agreement is particularly exciting as it marks a new phase of sustainable energy use in the aviation industry, demonstrating a proactive approach to tackling climate change.
Commitment to Environmental Standards
The neat SAF supplied is expected to be derived from waste-based sources, including used cooking oil and animal tallow. This innovative approach allows for an impressive reduction of lifecycle greenhouse gas emissions—up to 80% compared to traditional jet fuels. Furthermore, the SAF will adhere to a CORSIA-approved Sustainability Certification Scheme (SCS), ensuring that Southwest Airlines fulfills its sustainability requirements effectively.
Ramp-Up of Production Capacity
Production of SAF at the DGD Port Arthur plant is anticipated to commence in the fourth quarter of 2024, with operational adjustments enabling the plant to convert roughly 50% of its 470 million gallon annual production capacity to include SAF. This substantial production capability positions DGD among the largest SAF manufacturers globally, meeting the growing demand for cleaner fuel alternatives in aviation.
CEO's Vision for Growth in the SAF Market
Randall C. Stuewe, Chairman and CEO of Darling Ingredients, states, "We continue to build momentum in SAF sales, solidifying our position as the producer of choice in the industry." His outlook on the future emphasizes the need for a reliable supply of SAF that meets the market's increasing demands for sustainability, showcasing the company’s dedication to evolving alongside industry standards.
About Darling Ingredients
Darling Ingredients (NYSE: DAR) stands as a pioneer in creating a circular economy through its innovative methods of recycling by-products from the animal agriculture and food industries. The company harnesses these materials to produce essential ingredients for animal feed, human consumption, and renewable energy. Operating more than 260 facilities worldwide, Darling Ingredients processes a significant share of the world's animal agricultural by-products while producing approximately 30% of global collagen. The company not only focuses on returns but is also committed to sustainability and environmental health.
Frequently Asked Questions
What is the significance of Darling Ingredients' agreement with Southwest Airlines?
This agreement marks a substantial commitment to integrating sustainable aviation fuel in the airline's operations, aiming for significant reductions in greenhouse gas emissions.
How is the sustainable aviation fuel produced?
The SAF is produced from waste-based feedstocks, such as used cooking oils and animal tallow, ensuring environmental sustainability while meeting aviation fuel needs.
When is production of the SAF expected to begin?
Production at the DGD Port Arthur facility is expected to start in the fourth quarter of 2024, paving the way for increased SAF availability.
What are the environmental benefits of using SAF?
The sustainable aviation fuel contributes to a reduction of lifecycle greenhouse gas emissions by up to 80% compared to traditional jet fuels, promoting a greener aviation sector.
Where is Darling Ingredients Inc. located?
Darling Ingredients operates over 260 facilities across more than 15 countries, making it a significant player in the global food waste recycling and renewable energy landscape.
