FutureFuel sells 2025 clean fuel tax credits, commits to 2026 deal

FutureFuel Corp. (NYSE: FF) has completed the sale of its 2025 Section 45Z Clean Fuel Production and Small Producer Tax Credits to Freepoint Commodities, generating approximately $3 million in cash proceeds before broker fees and transaction costs, according to a press release from the Batesville, Arkansas-based company.

The credits were generated from low-carbon biodiesel produced at FutureFuel's Batesville facility. The $3 million figure meets management's previously issued guidance.

FutureFuel has also committed to selling its 2026 Section 45Z tax credits to Freepoint, with the value of those credits approximated at $19 million. The company said consolidating both transactions with a single buyer minimizes net costs.

"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."

Connor Nix, Managing Director of Biofuels and Renewable Products at Freepoint, described the arrangement as a multiyear agreement. "Freepoint is pleased to partner with FutureFuel to monetize its transferable tax credits through this multiyear agreement," Nix said.

Freepoint Commodities, founded in 2011 and headquartered in Stamford, Connecticut, operates as a global physical commodities merchant with more than 600 employees worldwide.

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