FutureFuel monetizes 2025 45Z tax credits, commits to 2026 sale

FutureFuel Corp., a leading manufacturer of specialty chemicals and renewable biofuels, announced July 1 that it has finalized the sale of all its 2025 section 45Z clean-fuel production and small-producer tax credits to Freepoint Commodities.

The credits stem from low-carbon biodiesel produced at the company’s Batesville, Arkansas, facility.

Before broker fees and transaction costs, the deal generates roughly $3 million in cash proceeds for 2025, meeting management’s prior guidance.

Additionally, FutureFuel has committed to selling its 2026 tax credits, approximated at $19 million, to Freepoint.

By structuring the sale of the credits with one party, the net cost to FutureFuel is minimized, according to the company.

“Successfully capitalizing on our section 45Z low-carbon fuel and small-producer tax credits aligns directly with our strategic goals,” said Rose Sparks, FutureFuel’s chief financial officer.

“Monetizing these credits enables funding for our ongoing chemical-expansion initiatives to drive shareholder value,” Sparks added.  

Connor Nix, the managing director of biofuels and renewable products at Freepoint, said, “Freepoint is pleased to partner with FutureFuel to monetize its transferable tax credits through this multiyear agreement. As a leading buyer of transferable tax credits in the renewable fuels sector, Freepoint is committed to helping producers maximize the value of the Inflation Reduction Act’s clean-energy incentives while supporting continued investment in low-carbon fuel production.”