Darling Ingredients Surges on California Proposal
[Stay on top of transportation news: Get TTNews in your inbox.]
Darling Ingredients soared the most in eight years after California signaled it may limit the use of seed oils in green diesel, which would be a boon to companies that use rival feedstocks.
The shares jumped as much as 16% for the biggest intraday advance since 2016. Darling, which produces renewable diesel through its Diamond Green Diesel partnership with Valero Energy Corp., didn’t immediately respond to requests for comment.
Darling ranks No. 30 on the Transport Topics Top 100 list of the largest private carriers in North America.
RELATED: Diesel Price Declines 5.1¢ to $3.704 a Gallon
Under proposed changes to the Golden State’s low-carbon fuel program, the use of soybean and canola oils in green diesel would be capped at 20%. If that limit is ultimately approved by regulators, Darling and other fuel makers that rely on used cooking oil and similar feedstocks would benefit.
Although “significant,” the 20% cap probably wouldn’t take effect until 2028, Bloomberg Intelligence analyst Brett Gibbs wrote in a note.
Want more news? Listen to today's daily briefing below or go here for more info:
