FutureFuel Corp. announced on June 17, 2025, its decision to temporarily idle biodiesel production upon completion of its remaining contractual obligations, which is anticipated by the end of June. This strategic move comes despite the U.S. Environmental Protection Agency (EPA) proposing increased biomass-based diesel mandates for 2026 and 2027.
CEO Roeland Polet stated that the primary reason for idling production is the continued lack of clarity on the Clean Fuel Producers Tax Credit (IRA 45Z), which was intended to replace the expired $1 per gallon Blenders Tax Credit (40(A)). The company remains committed to biodiesel production and plans to restart operations once regulatory conditions improve.
FutureFuel's Batesville facility possesses flexible production capacity, allowing it to switch between specialty chemicals and biodiesel. In response to the current challenges in the biodiesel industry, the company will redirect certain capacity to support the growth of its specialty chemicals business. Investment in new product capacity at its facility is expected to come online in mid-2025, with a robust pipeline of chemical projects being pursued for the second half of 2025 and 2026.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.