FutureFuel may soon restart biodiesel plant due to greater policy clarity, improved market conditions

Photo: FutureFuel Corp.

Biodiesel producer FutureFuel Corp. announced Oct. 15 that it could restart biodiesel manufacturing at its Batesville, Arkansas, facility sometime in the fourth quarter of this year after idling the plant in June.

The Batesville facility is capable of manufacturing nearly 60 million gallons of biodiesel per year.

“In June, we decided that, given the lack of clarity in the regulatory environment supporting biodiesel production and historic highs in input costs, it was in the company’s best interest to idle our biodiesel production until conditions improve,” the company stated.

Since then, FutureFuel said it has gained greater clarity around the support provided to biodiesel producers under the 45Z clean fuel production credit, which it can now incorporate into its production economics.

“In addition, we have seen a slight improvement in the input market, partially driven by record soybean crops and limited export demand for soybeans,” FutureFuel stated. “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.”

The company also announced the start-up of its new specialty-chemical production investment.

“This capacity will enable us to vertically integrate into one of our key raw materials used on-site, while also making products available to the market,” FutureFuel stated.

“Our production volume will ramp up throughout Q4 and will begin contributing more significantly to our sales starting in Q1 2026,” the company said.

In addition, FutureFuel announced that the company is closing its remote headquarters in St. Louis, Missouri, in order to streamline operations and focus on its main production, technology and administrative site in Arkansas.

As a result, the company will consolidate all corporate activities and key personnel at its Batesville, Arkansas, production facility.