Darling Ingredients closes 2 biodiesel plants in US, Canada with no plans to reopen
Darling Ingredients released its Q4 and full-year 2020 financials on March 2, in which the company disclosed that it has shut down operations at its two biodiesel production facilities in Montreal, Quebec, Canada (Rothsay); and Butler, Kentucky (formerly Griffin Industries renamed Darling Ingredients).
The Rothsay plant was capable of producing approximately 12 MMgy while the Kentucky facility—the first in the nation to produce biodiesel from animal fats—was scaled at roughly 2 MMgy. Darling acquired the Rothsay plant in 2013 and the Kentucky biodiesel facility in 2010.
“We made the decision to shutdown operations of our two biodiesel plants due to unfavorable biodiesel industry economics, and there are no current plans to resume biodiesel production at these facilities in the future,” said Randall C. Stuewe, chairman and CEO of Darling Ingredients. “The closure of the facilities will create additional feedstock for growth of renewable diesel in our Diamond Green Diesel joint venture.”
Stuewe said the Diamond Green Diesel joint venture with Valero met expectations for 2020, selling 288 million gallons of renewable diesel at an average of $2.34 EBITDA per gallon. “The earnings of Diamond Green Diesel have been consistent and steady over the last three years and based on the current environment, we believe that [it] should generate around $2.25 EBITDA per gallon for 2021. Also, we anticipate the startup of the 400-million-gallon expansion in Norco, Louisiana, to commission in the fourth quarter, potentially adding some capacity to finish out the year.”
The company’s 2020 net sales were $3.6 billion with a combined, adjusted EBITDA of $841.5 million. The 288 million gallons of renewable diesel sold in 2020 was a record for Diamond Green Diesel.
For more information about Q4 and full-year 2020 financials, click here.