Diamond Green Diesel receives approval of 45Z registration from IRS

Darling Ingredients Inc. announced Dec. 10 that its 50/50 joint venture Diamond Green Diesel received approval of its excise-tax registration from the Internal Revenue Service.

Registration is one of the requirements for a taxpayer to be eligible to claim the Internal Revenue Code 45Z credit, also known as the clean fuel production tax credit. 

“Obtaining the excise-tax registration is the first step in our ability to monetize the 45Z producers tax credit,” said Randall C. Stuewe, the chairman and CEO of Darling Ingredients.

“We are extremely encouraged by the registration and look forward to guidance concerning 45Z being released in the near future,” he added.

Diamond Green Diesel, a joint venture between Darling Ingredients and Valero, owns and operates two large renewable diesel refineries in Norco, Louisiana, and Port Arthur, Texas.

The Norco plant is scaled at 690 million gallons per year (mgy).

The Port Arthur facility is able to produce 470 mgy of both renewable diesel and sustainable aviation fuel (SAF).

In October, Diamond Green Diesel reached mechanical completion of its SAF project in Port Arthur, allowing up to half of its production capacity to be utilized for SAF manufacturing.

Darling Ingredients operates over 260 facilities in more than 15 countries and processes about 15 percent of the world’s animal agricultural byproducts.