FutureFuel Corp. has finalized the sale of all 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. The credits stem from low-carbon biodiesel produced at the company’s Batesville facility. This transaction meets management’s prior guidance for 2025. Additionally, FutureFuel has committed to selling its 2026 tax credits, estimated at $19 million, to Freepoint. By structuring the sale of the credits with one party, the net cost to FutureFuel is minimized.

The monetization of these tax credits aligns directly with FutureFuel's strategic goals, stated Rose Sparks, Chief Financial Officer of FutureFuel. The proceeds will fund ongoing chemical expansion initiatives to drive shareholder value. Freepoint Commodities, a leading buyer of transferable tax credits in the renewable fuels sector, expressed its commitment to helping producers maximize the value of the Inflation Reduction Act’s clean energy incentives while supporting continued investment in low-carbon fuel production.

Transaction Details

The multiyear agreement with Freepoint Commodities ensures FutureFuel can efficiently monetize its transferable tax credits. The credits are derived from the production of low-carbon biodiesel at FutureFuel's Batesville facility. The transaction structure minimizes net costs by consolidating sales with a single counterparty.

FutureFuel operates as a leading manufacturer of diversified chemical products and biofuels. Its chemicals segment produces custom and performance chemicals, while its biofuels segment primarily manufactures and sells biodiesel. The company’s strategic focus includes leveraging tax credits to support expansion in its chemical operations.

FutureFuel Corp. has declared a cash dividend of U.S. $0.01 per share for the third quarter of 2026, payable to shareholders of record on September 4, 2026. The dividend will be paid on September 18, 2026. The announcement was made by the company, which manufactures custom and performance chemicals and biofuels.

Dividend Details

The declared dividend applies to shareholders holding the stock on the record date. The payment will be made approximately two weeks after the record date.

About FutureFuel Corp.

FutureFuel Corp. is a manufacturer of diversified chemical products, specialty chemical products, and biofuel products. Its chemicals business includes custom chemicals manufactured for specific customers and multi-customer performance chemicals. The custom chemicals portfolio features proprietary intermediates for major chemical companies, as well as chlorinated polyolefin adhesion promoters and antioxidant precursors. The performance chemicals portfolio includes polymer modifiers and small-volume specialty chemicals for diverse applications. The company's biofuels segment primarily produces and sells biodiesel.