Randall Stuewe: Yes. That’s true, Manav. I mean, we’re just — until we get antitrust clearance and know the exact close date, I’m just not willing to put a number out there. But we’re telling you that it should contribute between $75 million and $100 million this year if we get to close that we can — that we think we’re going to get here.
Operator: And our next question will be from Matthew Blair from Tudor, Pickering & Holt.
Matthew Blair: Randy, I was wondering if you’ve been following the recent LCFS workshops from CARB? And if so, do you have any updated thoughts on where these future LCFS credits are headed?
Randall Stuewe: Yes. And I’ll — I’m excited about it, and — but I’ll let Sandy answer it.
Sandra Dudley: Yes. I think we’re very excited about the proposed increased stringency among the CARB program, going from 20% in 2030 to a reduction of 30%. As you know, as you look at what CARB’s model that sell in ’24, I think they’re around 110 per metric ton and then going in 2026 to the 200,000 are meeting the cap and then beyond that further. So I think that, that’s very positive in terms of credit prices. I think that it’s very positive in terms of green premiums for us. And obviously, we’re very supportive of that. There was another thing that CARB also proposed that I think that we’re really excited about, and that’s the LCFS obligation for intrastate flights. I think that, that would really support our SAF market. And when we come online in 2025, provide just additional demand, et cetera, from that program.
And I believe that the jet market there is about 400 million to 425 million gallons. So we’re excited about both of those things. And that, that’s only good news for DGD and Darling.
John Bullock: Can I add here? I think one of the really interesting things that there’s always so much wringing of the hands on what’s happening with LCFS credits in California, whether or not we’re going to get an extra couple of hundred million on the RINs market. The reality is when you look at what’s happening on the policy front around the world, Europe, Canada, California, increasing their LCFS credits, Washington State coming on, New Mexico considering, New York considering implementing on a regulatory basis, a variety of tax credits that are going in, in places like Illinois regarding SAF and other states are considering similar. We are in an explosion environment on the demand for low-carbon fuels. And what the marketplace has seen is that they can source low carbon fuels without the credit prices being massively high.
This is great news for Darling and great news for Diamond Green Diesel. It’s more demand for the waste fats in our base business. And what it means for Diamond Green Diesel, which quite frankly, when you take all these announcements and so forth that are out there, if you believe those announcements, there would be a massively more renewable diesel in the marketplace today that there is. The reality is there’s more renewable diesel in the marketplace today because of Diamond Green Diesel 2 and Diamond Green Diesel 3. And there’s not much else out there right now. So the fact of the matter is we see these policy developments as absolutely being perfect for the vertically integrated low-carbon strategy we put in place. I’m a little surprised that there’s not more excitement about the low carbon demand market that’s developing out there than there is.
We seem to assess all the details and kind of miss the forest on this.
