Calumet’s Montana Renewables SAF production plant fully operational
Calumet Specialty Products Partners’ subsidiary, Montana Renewables has completed the startup of its Sustainable Aviation Fuel (SAF) and pretreatment units.
Bruce Fleming, CEO, Montana Renewables confirmed that the company’s SAF, renewable diesel, and renewable hydrogen platforms are all fully complete and operational.
“As we ramp up our pre-treater and draw down existing safety stock of clean feed, we reconfirm go-forward EBITDA guidance of $1.25 to $1.45 per gallon based on local sourcing of untreated feedstocks,” he said.
On April 19th, Montana Renewables closed a $75m bridge loan with I Squared Capital. The firm said that it has the flexibility to prepay 50% of the principal under the loan from its cash flow by the end of 2024.
“Our capital markets strategy remains unchanged,” said Fleming. “This transaction provides strategic optionality as we continue to build North America’s largest SAF business.”
Todd Borgmann, CEO, Calumet added that with the site fully operational, the company can now add the full earnings power of Montana Renewables to the company’s portfolio.
“Over the past two years, our Montana Renewables team has quickly launched a leading renewables platform and created a first-mover advantage in SAF,” said Borgmann. “This major accomplishment is the most recent step in our transformational plan to unlock value for Calumet’s unit holders.”
The firm plans to hold an opening ceremony on May 10th.