Montana Renewables to add 150 MMgy of SAF capacity by 2026
SOURCE: Calumet Inc.
November 12, 2024
BY Erin Voegele
Calumet Inc. on Nov. 8 released third quarter financial results and outlined plans for the development of Montana Renewables’ MaxSAF initiative, which will be supported by a U.S. Department of Energy loan guarantee.
The DOE in mid-October issued Montana Renewables a conditional commitment for a loan guarantee of up to $1.44 billion to fund the construction and expansion of its biorefinery located in Great Falls, Montana.
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According to Calumet, the expansion project would position Montana Renewable as one of the largest sustainable aviation fuel (SAF) producers in the world with production capacity of approximately 300 MMgy of SAF and 330 MMgy of combined SAF and renewable diesel.
Todd Borgmann, CEO of Calumet, explained the MaxSAF project is designed to be modular—a set of discrete projects developed in a series. The initial expansion project is expected to take approximately two years and will boost the facility’s SAF capacity to 150 MMgy. That capacity is currently expected to be operational by 2026.
Further expansions will take longer to engineer and install, Borgmann added, noting they will include an expansion of renewable hydrogen production, expanded feedstock pretreatment capacity, a new wastewater system, renewable electricity and steam via cogeneration, enhanced SAF truck loading capabilities and other efficiency improvements.
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Regarding current operations at Montana Renewables, David Lunin chief financial officer at Calumet, said the facility processed nearly 12,000 barrels per day of renewable feedstock during the third quarter. SAF production increased to 2,500 barrels per day, up from 1,700 barrels per day during the second quarter. SAF production was at 3,200 barrels per day in September.
Montana Renewables is conducting a planned turnaround in November to change catalyst. The timing allows completion prior to the winter season and was planned to coincide with a period of margin uncertainty as the blenders tax credit is expected to change to the production tax credit.
Montana Renewables reported $12.7 million of adjusted EBITDA during the third quarter, down from $38.2 million during the same period of last year. Calumet said third quarter results reflect improved operating results, higher volumes from its renewable business, and a new high point for SAF production.
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