SAF project on track, demand to dictate expansion: Darling Ingredients

Darling Ingredients said that their sustainable aviation fuel (SAF) unit is on track to begin production by the end of 4Q2024 while adding that it is working to secure both domestic as well as international supply opportunities.

Commenting on the SAF market, Robert Day, company’s chief strategy officer while speaking at the earnings call, said that the SAF market is beginning to evolve with EU regulations kicking in next year.

“The SAF picture is quickly evolving as European regulations really come online in 2025. I think the interesting thing there is technically compliance around SAF is required later in the period,” he said.

On the other hand, company’s CEO and chairman Randall Stuewe, in response to a question said that the company is winding down its spending on the SAF project as it nears completion. However, he said that the company is open to expansion provided the demand signals are favourable.

“SAF 2, my colleague at Valero, Lane Riggs [CEO at Valero] and I are sitting here saying, sell out number one and bring us the contracts for more gallons and we’ll commit to you to build SAF 2. It’s engineered. It’s costed out plus or minus 10%, ready to go. But any further investment decision is on hold until we see the lights of the demand here,” added Stuewe.

Valero Energy and Darling Ingredients are jointly developing SAF project at the Diamond Green Diesel (DGD) Port Arthur plant in Texas.

The project is expected to give the DGD plant the optionality to upgrade approximately 50% of its current 470m gallon renewable diesel annual production capacity to SAF.

With the completion of this project, it is expected to become one of the largest manufacturers of SAF in the world.