Darling Ingredients announces agreement to bring SAF supply to Chicago Midway

Darling Ingredients (DAR) announced that its 50/50 joint venture Diamond Green Diesel will provide supply of neat sustainable aviation fuel, to be blended with conventional jet fuel, for delivery to Chicago Midway International Airport. As part of the two-year supply agreement between Valero Marketing and Supply Company, a subsidiary of Valero Energy Corporation (VLO) and Southwest Airlines Co. (LUV), Southwest will purchase a minimum of 3.6 million gallons of neat SAF for use in its operations as early as fourth quarter 2024, with the option to purchase up to 25 million gallons of neat SAF over the agreement’s term. The neat SAF is expected to be produced from waste-based feedstocks, such as used cooking oil, animal tallow, and distiller’s corn oil, with a lifecycle greenhouse gas emission reduction up to 80% compared to conventional jet fuel. Furthermore, the SAF is expected to be certified by a CORSIA-approved Sustainability Certification Scheme at the batch level, providing Southwest with third-party verification that the SAF meets or exceeds all the requirements of Southwest’s SAF policy.