Marathon Petroleum invests in Comstock Fuels’ technology
Comstock announced that its subsidiary, Comstock Fuels Corporation, has secured a $14m investment from petroleum giant Marathon Petroleum Corporation.
The deal marks a significant step forward in the development of lignocellulosic biomass refining technology.
The investment includes $1m in cash and $13m in payment-in-kind assets, primarily equipment and intellectual property from Marathon’s renewable fuel demonstration facility in Madison, Wisconsin.
Comstock Fuels plans to utilise these assets to expand its current pilot production capabilities in Wausau, Wisconsin.
“We’re excited to collaborate with Marathon’s team as we work to integrate the Madison Facility and advance our unique renewable fuels technology to commercial maturity,” said Kevin Kreisler, Comstock Fuels’ chief technology officer.
Comstock’s technology can convert biomass feedstock into drop-in hydrocarbon fuels compatible with existing petroleum-based infrastructure. Unlike current renewable fuel solutions that rely on limited feedstocks such as corn, soy, and vegetable oils, Comstock’s approach taps into a potentially massive supply chain.
According to estimates from the US Department of Energy, America could produce up to1bn tons of biomass annually for fuel conversion. Using Comstock Fuels’ refining solutions, this untapped resource could yield more than 3 bn barrels of fuel per year.
The agreement includes board observation rights for Marathon and outlines plans to finalise additional arrangements by May 31, 2025, including an offtake agreement, joint development agreement and warrant agreement.
This strategic collaboration represents a significant vote of confidence in Comstock’s innovative approach to renewable fuel production as the energy sector continues to explore sustainable alternatives to traditional petroleum products.
Earlier in February this year, Comstock Fuels announced the signing of definitive agreements with Singapore-based renewable fuel project developer SACL for exclusive marketing agreement for Comstock Fuels’ lignocellulosic biomass refining processes in Australia, New Zealand, Vietnam and Malaysia.