FutureFuel Halts Biodiesel Output, Could Resume Later Q4

DAVENPORT, FL (DTN) — FutureFuel Corp announced Wednesday (10/15) that it has suspended its biodiesel production operations and consolidated its corporate headquarters to Arkansas as it navigates regulatory uncertainty and elevated feedstock costs.

The company said it expects to restart biodiesel operations sometime during the fourth quarter once market conditions improve.

The diversified chemical manufacturer said the decision to temporarily halt biodiesel production at its Batesville facility was prompted by a lack of clarity in federal policies supporting the industry, as well as historically high input costs.

FutureFuel’s production capacity for biofuel has been reported at 60 million gallons annually.

Along with the suspension in biofuel output that it announced Wednesday, FutureFuel said it has also closed its remote headquarters in St. Louis, Mo., and relocated key staff and corporate functions to Batesville.

The shutdown reflects challenges facing the broader biodiesel sector as producers await details on the reinstatement of the biodiesel blenders tax credit and guidance on Renewable Fuel Standard compliance.

Soybean oil and other feedstock prices have also remained at elevated levels throughout 2024.