FutureFuel Corp. announced on January 31, 2025, that its scheduled annual maintenance and turnaround of its Biodiesel plant, initiated at the end of December 2024, has proven more extensive than anticipated. The company now believes the turnaround will continue through February 2025, during which time biodiesel production will not commence.
This operational delay is compounded by significant regulatory uncertainty in the biodiesel industry. The Blenders’ Tax Credit (Section 40(A)) expired on December 31, 2024, and has been replaced by the IRA 45Z producer's tax credit, effective January 1, 2025. However, applicable government agencies have not yet published sufficient details for the IRA 45Z.
The lack of clarity surrounding the new tax credit has created a challenging environment for the biodiesel industry, leading other producers to reduce or halt operations. FutureFuel stated it will closely monitor this situation as it considers its approach to biodiesel production and its role in the biofuels market.
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