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Sustainable Aviation Fuel

Montana Renewables begins commercial operations

Montana Renewables begins commercial operations
The Calumet Montana facility operates in two services, 12 000 bpcd crude refinery (Calumet Montana Refining - CMR) and 12 000 bpcd renewables (Montana Renewables - MRL), the latter of which has started up sustainable aviation fuel (SAF) production (photo courtesy Calumet).

US-headed Calumet Specialty Products Partners, L.P. (Calumet), a leading independent producer of specialty hydrocarbon and fuels products has recently announced that its Montana Renewables LLC subsidiary (MRL) completed the startup of its sustainable aviation fuel (SAF) and pretreatment units.

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Headquartered in Indianapolis, Indiana (IN), Calumet currently operates twelve facilities throughout North America.

The company’s operations in Montana (MT) include two fully independent business lines: renewables through Montana Renewables, LLC (MRL), and conventional Canadian crude refining through Calumet Montana Refining LLC (CMR).

We are pleased to report that our leading Sustainable Aviation Fuel, Renewable Diesel, and Renewable Hydrogen platform is fully complete and operating. As we ramp up our pre-treater and draw down existing safety stock of clean feed, we reconfirm go-forward EBITDA guidance of US$1.25 to US$1.45 per gallon based on local sourcing of untreated feedstocks, said Bruce Fleming, CEO of Montana Renewables.

On April 19, MRL closed a US$75 million bridge loan with I Squared Capital. The bridge loan bears a variable rate of interest at SOFR plus 6.0 to 7.3 percent per annum and MRL have the flexibility to prepay 50 percent of the principal under the bridge loan from free cash flow by the end of 2024.

Our capital markets strategy remains unchanged. This transaction provides strategic optionality as we continue to build North America’s largest SAF business, Bruce Fleming said.

Following a year in which we’ve demonstrated the power of Calumet’s legacy Specialty business, we can now add the full earnings power of Montana Renewables. Over the past two years, our Montana Renewables team has quickly launched a leading renewables platform and created a first-mover advantage in SAF. This major accomplishment is the most recent step in our transformational plan to unlock value for Calumet’s unitholders, said Todd Borgmann, CEO of Calumet.

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