FutureFuel Corp. on Oct. 15 announced that the company is optimistic it will be able to restart its 59 MMgy biodiesel plant in Batesville, Arkansas, during the fourth quarter due to improving economics and regulatory clarity.
FutureFuel in June announced a decision to temporarily idle the Batesville plant, citing a lack of clarity regarding the 45Z clean fuels production credit and market factors. In its second quarter earnings release, released Aug. 11, the company confirmed the plant remained idle due in part to on-going abnormally high feedstock prices.
With feedstock prices dropping and improved 45Z clarity, the facility may be in a position to resume production before the end of the year. “Since June, we have gained greater clarity around the support provided to biodiesel producers under IRA 45Z, which we can now incorporate into our production economics,” FutureFuel said its Oct. 15 statement. “In addition, we have seen a slight improvement in the input market, partially driven by record soybean crops and limited export demand for soybeans. We have become a bit more optimistic that, subject to market conditions, we will be able to procure the inputs needed to restart biodiesel production sometime in Q4 2025.”
