FutureFuel Idles Biodiesel Production Amidst Regulatory Uncertainty, Shifts Full Focus to Specialty Chemicals Growth

Core Viewpoint - FutureFuel Corp. has decided to temporarily idle its biodiesel production despite the U.S. EPA's proposed increase in biomass-based diesel mandates for 2026 and 2027, due to uncertainty regarding the Clean Fuel Producers Tax Credit [1][2][3]. Company Actions - The company will complete its remaining contractual obligations for biodiesel production by the end of June 2025 [1]. - FutureFuel plans to redirect certain production capacity from biodiesel to enhance its specialty chemicals business [4]. - The company anticipates new product capacity investments to come online in mid-2025 and is actively pursuing a pipeline of chemical projects for the latter half of 2025 and 2026 [4]. Industry Context - The EPA has proposed increasing biomass-based diesel mandates to 7.12 billion RINs for 2026 and 7.50 billion RINs for 2027, a significant increase from 3.35 billion gallons in 2025 and 5.36 billion gallons in 2026 [2]. - The uncertainty surrounding the Clean Fuel Producers Tax Credit has influenced FutureFuel's decision to pause biodiesel production [3]. Company Overview - FutureFuel is a manufacturer of custom and performance chemicals and biofuels, with a diverse product portfolio that includes specialty chemicals and biodiesel [5]. - The company's Batesville facility has flexible production capacity, allowing it to switch between specialty chemicals and biodiesel [3].