On Friday, the shares of Darling Ingredients (DAR) rallied 7.8% after the Biden administration unveiled guidance on a tax credit for Sustainable Aviation Fuel (SAF). Today the shares are adding another 1% in early trading.

Diamond Green, Darling's joint venture with Valero Energy (VLO), was slated as of October to begin producing SAF at its Texas plant by the end of 2024. The factory will eventually be able to manufacture up to approximately 235 million gallons per year of SAF.

Among the airlines that have agreed to buy Diamond Green's SAF are Southwest (LUV) and JetBlue (JBLU).

The Biden Administration's Guidance

The Biden administration on Friday disclosed that the tax credit for the production of SAF would be in effect in 2025. Additionally, the administration decided that SAF which "has a lifecycle greenhouse gas emissions rate....of not greater than 50 kilograms ..of carbon dioxide equivalent based on relative global warming potential (CO2e) per million British thermal units " would be eligible to qualify for the credit.

Diamond Green has stated that "Renewable fuel produced at Diamond Green Diesel meets the most stringent low-carbon fuel standards."

Finally, the administration released "a notice of intent to propose regulations on the" tax credit, suggesting that additional criteria on the tax break will be released by the incoming Trump administration.

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Disclosure: None. This article is originally published at Insider Monkey.