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Diamond Green Diesel to Enhance Distribution Logistics Per Agreement With St. Rose IMTT Terminal

Darling International Inc. (PRNewsfoto/Darling International Inc.)

News provided by

Darling Ingredients Inc.

Feb 25, 2020, 08:00 ET

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IRVING, Texas, Feb. 25, 2020 /PRNewswire/ -- Darling Ingredients Inc. (NYSE:DAR) today announced that its joint venture with Valero Energy Corporation, Diamond Green Diesel ("DGD"), has entered into a long-term lease agreement with IMTT. The agreement will allow DGD access and use of the St. Rose IMTT Terminal as a logistics hub for DGD's existing and expanding renewable diesel facility located in Norco, LA. IMTT will, pursuant to the agreement, construct two 5-mile long pipelines connecting its St. Rose, LA terminal with the DGD Norco, LA renewable diesel facility. IMTT will also repurpose approximately 790,000 barrels of existing storage capacity from heavy and residual petroleum service to storage of renewable diesel feedstock and finished product as a part of the project. The pipeline build and the storage capacity transition are expected to be in service prior to the end of 2021, coinciding with the anticipated startup of DGD's current 400-million-gallon expansion project.

"We are extremely pleased to be working with IMTT. What is so often overlooked when discussing the critical success components of renewable diesel economics is the supply chain, which is both complicated and costly to manage," said John Bullock, EVP, Chief Strategy Officer for Darling Ingredients. "Having a world-class terminal like IMTT St. Rose accessible by pipeline with the capability to receive feedstocks and ship product via multiple modes of transport creates a significant competitive advantage for us. DGD has been a leader in the industry and developing a sophisticated and flexible supply chain is a continuation of our leadership position. We would not be in this business without a thorough plan that provides for flexibility in raw material sourcing and finished product marketing. This agreement places us in a position to economically source renewable diesel feedstock while allowing us to supply the best markets for our renewable diesel and naphtha."

About Darling

Darling Ingredients Inc. is a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and specialty solutions for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries.  With operations on five continents, the Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides.  The Company also recovers and converts recycled oils (used cooking oil and animal fats) into valuable feed and fuel ingredients and collects and processes residual bakery products into feed ingredients. In addition, the Company provides environmental services, such as grease trap collection and disposal services to food service establishments. The Company sells its products domestically and internationally and operates within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. For additional information, visit the Company's website at http://www.darlingii.com and to review the Company's Environmental, Social and Governance (ESG) Factsheet at http://www.commitment.darlingii.com/metrics/esgfactsheet.

About IMTT

IMTT, International-Matex Tank Terminals (IMTT) is headquartered in New Orleans, Louisiana and is an industry leader in the handling and storage of bulk liquid products through its ownership and operation of 19 terminals throughout North America. The terminals handle petroleum, biofuels, commodity/specialty chemicals, and vegetable/tropical oil products for customers including refiners, commodities traders and chemical manufacturers and distributers.

Darling Ingredients contacts

Investors:
James Stark, Vice President Investor Relations   Email: [email protected]   Phone:  972-281-4823

Media:
Melissa A. Gaither, VP Global Communications & Sustainability   Email: [email protected]   Phone:  972-281-4478

Cautionary Statements Regarding Forward-Looking Information:

{This media release contains "forward-looking" statements regarding the business operations and prospects of Darling Ingredients Inc., including its Diamond Green Diesel (DGD) joint venture, and industry factors affecting it. These statements are identified by words such as "believe," "anticipate," "expect," "estimate," "intend," "would," "could," "may," "will," "should," "planned," "potential," "continue," "momentum," "assumption," and other words referring to events that may occur in the future.  These statements reflect Darling Ingredient's current view of future events and are based on its assessment of, and are subject to, a variety of risks and uncertainties beyond its control, each of which could cause actual results to differ materially from those indicated in the forward-looking statements.  These factors include, among others, changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the Renewable Fuel Standards Program (RFS2), low carbon fuel standards (LCFS) and tax credits for biofuels both in the Unites States and abroad; and risks associated with the DGD renewable diesel plant in Norco, Louisiana, including possible unanticipated operating disruptions and issues related to the announced expansion project. Other risks and uncertainties regarding Darling Ingredients Inc., its business and the industries in which it operates are referenced from time to time in the Company's filings with the Securities and Exchange Commission.  Darling Ingredients Inc. is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.}

SOURCE Darling Ingredients Inc.

Related Links

http://www.darlingii.com

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