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FutureFuel to resume biodiesel production as market conditions improve

FutureFuel Corp, a leading manufacturer of custom and performance chemicals and biofuels, shared significant updates regarding its operations, including developments in its specialty chemical production, biodiesel production, and corporate restructuring.

According to the company press release, FutureFuel announced the successful startup of its new specialty chemical production investment. This new capacity is designed to vertically integrate into one of the Company’s key raw materials used on-site. The additional production will also allow FutureFuel to expand its product offerings available to the market.

The Company expects the production volume to gradually ramp up throughout the fourth quarter of 2025, with a more substantial contribution to sales beginning in Q1 2026.

“We are excited about the potential of this new investment, which not only strengthens our internal operations but also expands our market presence in the specialty chemicals sector,” said FutureFuel CEO. “This move is part of our ongoing strategy to increase our operational efficiency and product offerings.”

Regarding its biodiesel production, FutureFuel announced a strategic pause in June 2025 due to uncertainty in the regulatory environment and historically high input costs. At the time, the company determined that it was in its best interest to idle production until market conditions improved.

Since then, however, FutureFuel has gained greater clarity around the support available to biodiesel producers under IRA 45Z. The company now sees an opportunity to integrate these regulatory benefits into its production economics. Additionally, improvements in the input market have been observed, driven partly by record soybean crops and limited export demand for soybeans.

As a result, FutureFuel has grown optimistic about restarting its biodiesel production as early as Q4 2025, contingent upon favorable market conditions and continued improvements in input procurement.

“We are cautiously optimistic about the future of biodiesel production, especially with the recent clarity on regulatory support and improvements in input costs,” said the CEO. “We are hopeful that these conditions will allow us to restart production in the coming months, enabling us to better serve the growing demand for sustainable fuels.”

To streamline operations and focus on its core business activities, FutureFuel also announced the closure of its remote headquarters in St. Louis, Missouri. The Company will consolidate all corporate functions and key personnel at its Batesville, Arkansas production facility.

This move is part of the Company’s effort to enhance operational efficiency and better align its headquarters with its primary production, technology, and administrative operations.

“We believe this consolidation will enable us to operate more effectively and ensure we are strategically positioned for future growth,” the CEO added. “By centralizing our efforts at our Batesville facility, we can improve collaboration across departments and maintain our focus on driving long-term value for our shareholders.”

With the expansion of its specialty chemicals business, the potential restart of biodiesel production, and the consolidation of operations, FutureFuel Corp. is positioning itself for a more efficient and streamlined future. The Company remains committed to providing high-quality chemical and biofuel solutions, leveraging its strong production capabilities and strategic investments to meet market demands.

FutureFuel Corp. continues to monitor market conditions and regulatory developments, particularly in the biofuel sector, and will provide further updates as new opportunities and challenges arise.

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