US renderer and renewable diesel producer Darling Ingredients has agreed to sell around US$60M in production tax credits – generated under the Inflation Reduction Act (IRA) by the company’s 50/50 joint venture Diamond Green Diesel (DGD) – to a corporate buyer.
The proceeds of the sale were expected to be received by 31 December once funding conditions were met, the company said on 4 December.
DGD produces renewable diesel and sustainable aviation fuel (SAF) from recycled animal fats and used cooking oil (UCO).
In September, the company announced it had sold US$125M in production tax credits, bringing its total production credit sales in 2025 to US$185M.
The credits are Clean Fuel Production Tax Credits under Section 45Z of the Internal Revenue Code, created by the Inflation Reduction Act (IRA). They are earned by producers of low-carbon transportation fuels, including renewable diesel, based on the lifecycle greenhouse gas emissions of the fuel compared with petroleum diesel. These credits can be sold to unrelated corporate buyers, who use them to offset their federal tax liability.
Darling Ingredients operates 260 plants in 15 countries and repurposes nearly 15% of the world’s meat industry waste streams into value-added products, such as green energy, renewable diesel, collagen, fertiliser, animal proteins and meals and pet food ingredients.
