Department of Energy Offers Conditional Commitment for a Loan Guarantee with Respect to Proposed Renewable Diesel Project
IRVING, Texas, Jan. 20, 2011 - Darling International Inc. (NYSE: DAR),a leading provider of rendering, recycling and recovery solutions to the nation's food industry, today announced that the U.S. Department of Energy (DOE) has formally offered a conditional commitment for a $241 million loan guarantee for Darling's proposed joint venture project with Valero Energy Corporation to build a renewable diesel facility.
Randall C. Stuewe, Chairman and CEO of Darling, said, "We are pleased to work with both the Department of Energy's Loan Programs Office and Valero on reaching this milestone and look forward to finalizing this process and commencing construction."
If finalized, the loan guarantee will support the construction of a facility capable of producing over 9,300 barrels/day or 137 million gallons per year of renewable diesel on a site adjacent to Valero's St. Charles refinery near Norco, Louisiana. The facility will convert grease, primarily animal fats and used cooking oil supplied by Darling, and potentially other feedstocks that become economically and commercially viable into renewable diesel. Commencement of the project is contingent, among other things, on the execution by the parties of a definitive loan guarantee agreement, an acceptable final cost estimate for construction of the facility and the final approval of Darling's and Valero's respective boards of directors.
Darling International Inc. is the nation's largest and only publicly traded provider of rendering and bakery waste recycling solutions to the nation's food industry. The Company recycles beef, pork and poultry waste streams into useable ingredients such as tallow, feed-grade fats, meat and bone meal, poultry meal and hides. The Company also recovers and transforms used cooking oil and commercial bakery waste into valuable feed and fuel ingredients. These products are primarily sold to agricultural, pet food, leather, oleo-chemical and bio-diesel manufacturers around the world. In addition, the Company provides grease trap collection services and sells used cooking oil collection equipment to restaurants.
Valero Energy Corporation is an international manufacturer and marketer of transportation fuels, other petrochemical products and power. Its assets include 14 petroleum refineries with a combined throughput capacity of approximately 2.6 million barrels per day, 10 ethanol plants with a combined production capacity of 1.1 billion gallons per year and a 50-megawatt wind farm. Valero is also one of the largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under the Valero, Diamond Shamrock, Shamrock, Ultramar and Beacon brands. Based in San Antonio, Valero is a Fortune 500 company with approximately 20,000 employees. Please visit www.valero.com for more information.
For additional information, visit the Company's web site at www.darlingii.com.
SOURCE Darling International Inc.
CONTACT:John O. Muse,Executive Vice President of Finance and Administration,orBrad Phillips,Treasurer,+1-972-717-0300,both of Darling International Inc.
Web Site: www.valero.com
