#United States #Irving #Darling Ingredients #Diamond Green Diesel #IRS Approval

Darling Ingredients and Diamond Green Diesel's Excise Tax Registration Approval

Darling Ingredients Inc. (NYSE: DAR) has recently made headlines with the announcement that its joint venture, Diamond Green Diesel (DGD), has successfully received the approval for its excise tax registration from the Internal Revenue Service (IRS). This crucial step is part of the criteria required for the eligibility to claim the Internal Revenue Code 45Z credit, which is poised to significantly benefit the company moving forward.

The Significance of the IRS Approval

The excise tax registration approval signifies DGD's readiness to monetize the 45Z Producer's Tax Credit. Randall C. Stuewe, the Chairman and CEO of Darling Ingredients, expressed optimism about this development, highlighting its importance as the first step towards tapping into the tax incentive. Stuewe stated, "We are extremely encouraged by the registration and look forward to guidance concerning 45Z being released in the near future." This sentiment underscores the company's commitment to advancing its renewable diesel production capabilities and maximizing financial benefits from governmental support programs.

Understanding the 45Z Producer's Tax Credit

The 45Z Producer's Tax Credit is a federal incentive designed to promote the production of renewable fuels. The credit is aimed at encouraging environmentally friendly practices in the energy sector, particularly those that utilize waste materials. DGD specializes in converting feedstocks, such as used cooking oils and animal fats, into high-quality renewable diesel fuel, contributing to a reduction in greenhouse gas emissions.

As the world increasingly turns towards sustainable energy sources, the timing of this approval could not be more critical. According to industry analysts, the renewable diesel market is expected to grow substantially in the coming years, as more businesses and governments seek to adopt cleaner energy solutions.

Darling Ingredients: A Leader in Sustainability

With over 260 facilities and operations in more than 15 countries, Darling Ingredients is a recognized leader in sustainability. The company processes approximately 15% of the world's animal agricultural by-products, simultaneously generating renewable energy and valuable nutrients for various industries including feeding livestock and crops. Moreover, they produce about 30% of the world's collagen, used in food, pharmaceuticals, and cosmetics.

Their commitment to circular economy principles sets them apart in the agricultural and energy sectors. By transforming waste into high-value products, Darling Ingredients not only supports sustainable practices but also plays a vital role in addressing global food and energy challenges.

Future Prospects for Diamond Green Diesel

As DGD progresses with the implementation of the excise tax registration, stakeholders eagerly await the IRS guidance related to the 45Z credit. This guidance will be instrumental in detailing the next steps for companies positioned to benefit from the tax advantages.

In addition, the renewable energy sector, especially in the realm of sustainable fuels, is experiencing a surge in investment and interest as part of a broader strategy to meet global climate goals. With the financial backing made possible through programs like the 45Z credit, businesses such as DGD are better equipped to expand their operations and enhance their contributions to reducing carbon footprints.

Interested parties can learn more about Darling Ingredients’ renewable diesel production and its commitment to sustainability on their official website at darlingii.com/DGD.

This recent approval from the IRS serves as a strong signal of Darling Ingredients' forward momentum in the renewable energy space, reinforcing its status as an innovator in the circular economy and sustainable practices.