Core Viewpoint - A Texas refinery supplying green fuel to U.S. airlines has been sourcing animal fat from cattle raised on illegally cleared lands in the Amazon rainforest [1] Group 1: Company Operations - The Texas refinery is involved in the production of green fuel, which is intended for use by U.S. airlines [1] - The refinery's supply chain includes the procurement of animal fat, raising concerns about the sustainability and legality of its sourcing practices [1] Group 2: Environmental Impact - The sourcing of animal fat from cattle on illegally cleared Amazon lands highlights significant environmental issues related to deforestation and illegal land use [1] - This practice poses risks to the reputation of the refinery and the airlines that utilize its green fuel, as it contradicts sustainability goals [1]

Core Insights - The investigation reveals that Diamond Green Diesel, a significant player in the U.S. sustainable fuels market, is sourcing animal fat from cattle raised on illegally cleared lands in the Amazon rainforest, raising concerns about the environmental impact of its supply chain [7][5][3]. Company Overview - Diamond Green Diesel is a joint venture between Darling Ingredients and Valero Energy, with substantial investments in a Texas refinery that converts cattle fat into a cleaner alternative to petroleum-based fuels [6][5]. - The company has received over $3 billion in U.S. tax credits for biofuel production since 2022, indicating its financial backing and growth potential in the sustainable fuels market [5]. Supply Chain Concerns - Reports indicate that at least two Brazilian factories supplying Diamond Green Diesel have sourced cattle fat from slaughterhouses linked to illegally deforested ranches in the Amazon [5][11]. - The tallow trade from these ranches to Diamond Green Diesel has been tracked through various investigative methods, including interviews and government data [8][9]. Market Dynamics - The global market for sustainable jet fuel is projected to be approximately $2.9 billion by 2025, significantly smaller than the $239 billion market for conventional aviation fuel, but expected to grow due to government incentives [3]. - Airlines like JetBlue and Southwest Airlines are under pressure to purchase more green jet fuel to meet net-zero emissions targets by 2050, which may drive demand for tallow as a biofuel [19]. Regulatory and Certification Issues - The International Sustainability and Carbon Certification (ISCC) has certified Diamond's imports from Brazil as sustainable, but it did not investigate the supply chain, considering tallow a byproduct of the beef industry [20]. - Experts have raised concerns that the current sustainability standards may overlook the deforestation linked to the tallow supply chain, as the program assumes that demand for tallow will not incentivize ranchers to clear more land [21].