FutureFuel Corp. announced certain matters with respect to its Biodiesel production. FutureFuel initiated its scheduled annual maintenance and turnaround of its Biodiesel plant at the end of December 2024.
This turnaround has proven more extensive than expected. Therefore, the Company currently believes the turnaround will continue through February 2025. Biodiesel production will not commence until this turnaround is complete.
Biodiesel production has been enabled through the support of Section 40(A), the Blenders' Tax Credit, whichpired on December 31, 2024. This key incentive program has been replaced by a producer's tax credit, IRA 45Z, which became effective January 1, 2025. However, the applicable government agencies have not yet published sufficient details of the IRA 45Z.
This creates a level of uncertainty for the Biodiesel industry which has caused other Biodiesel producers and their capacity to go offline. The Company will be closely monitoring this as it considers its approach to Biodiesel production and its role in the biofuels market.
