(NYSE: FF) (“FutureFuel” or the “Company”), a manufacturer of custom and performance chemicals and biofuels, today announced certain matters relating to its biodiesel production. production.
In late December 2024, FutureFuel initiated an annual maintenance and overhaul of its biodiesel plant. The overhaul proved to be more extensive than anticipated. As a result, the Company currently believes that the overhaul will continue through February 2025. Biodiesel production will not commence until the overhaul is completed.
Biodiesel production is supported by the Section 40(A) (Blender’s Tax Credit), which expires on December 31, 2024. This key incentive program has been replaced by the producer tax credit, IRA 45Z, which is effective January 1, 2025. However, sufficient details of IRA 45Z have not yet been released by the relevant government agencies. This has created a degree of uncertainty for the biodiesel industry, causing other biodiesel producers and their capacity to go offline. The Company will monitor this matter closely as it considers its biodiesel production methods and its role in the biofuels market.