Calumet: Montana Renewables ramps up production in Q1, continues work on proposed MaxSAF initiative
SOURCE: Calumet Specialty Products Partners L.P.
May 13, 2024
BY Erin Voegele
Calumet Specialty Products Partners L.P. on May 10 reported that operations at its Montana Renewables biorefinery improved sequentially through the first quarter and that the facility was operating at planned production levels in April, producing both renewable diesel and sustainable aviation fuel (SAF).
Operations at the Montana Renewables facility were impacted last year by a crack found in the steam drum of the facility’s hydrogen plant. A replacement drum was installed in November and the facility returned to normal operations in December. “Each month has improved sequentially as we've ramped up rates, increased SAF production, reduced our feedstock carbon intensity, and work through the old expensive feed,” said Calumet CEO Todd Borgmann during a first quarter earnings call.
The company in February 2021 first announced plans to produce renewable fuels at its existing refinery in Great Falls, Montana, by reconfiguring its oversized hydrocracker to process up to 15,000 barrels per day of renewable feedstocks, producing renewable diesel and SAF. The facility began producing on-spec renewable diesel in 2022, with plant capacity at 6,000 barrels per day. The Montana Renewables facility commissioned renewable hydrogen, SAF and feedstock pretreatment systems in early 2023, boosting capacity to 12,000 barrels per day. Current SAF capacity in the range of 2,000 to 4,000 barrels per day, but Calumet is considering a move to what its calls MaxSAF, which would boost total capacity to 18,000 barrels per day of renewables, including 15,000 barrels per day of SAF.
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Calumet is pursuing a U.S. Department of Energy loan guarantee to support the development of its proposed MaxSAF initiative. Borgmann said the loan application process is in the late stages and continues to progress well. He said the company is refraining from sharing too much more on the proposed project until it gets to the finish line with the DOE, but stressed Calumet is incredibly excited about the MaxSAF initiative. “SAF is a tremendous opportunity for the world for our industry,” he said, noting SAF is the only way to materially reduce emissions in the airline sector.
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