Montana Renewables achieves record SAF production in Q3

Calumet Inc. announced Nov. 8 that its Montana Renewables segment reported $12.7 million of adjusted EBITDA during the third quarter of 2024 compared to adjusted EBITDA of $38.2 million in the same period the year before.  

Third quarter results reflect improved operating results, higher volumes from its renewables business, and a new high point for sustainable aviation fuel (SAF) production, the company stated.  

At over 2,500 barrels (105,000 gallons) per day, Montana Renewables achieved record quarterly SAF production.  

Montana Renewables’ third-quarter results relfect approximately a $6 million negative impact to margins from feedstock prices, the company stated.   

The Great Falls facility is conducting a planned turnaround in November to change catalyst.   

This 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 45Z clean fuel production tax credit. 

Regarding the $1.44 billion conditional commitment for a loan gaurantee from the U.S. DOE to fund its MaxSAF™ expansion project, which would boost SAF production to 300 million gallons per year, the company said it expects to executive a sequence of discrete individual projects, including:  

• A second renewable fuels reactor, allowing approximately half of the 300-million-gallon SAF capability to be online by 2026.  

• Debottlenecking of the existing renewable fuels and feedstock pretreatment units.  

• Installation of SAF blending and logistics assets.  

• Increased renewable hydrogen production.  

• Addition of cogeneration for renewable electricity and steam.  

• On-site water treatment and recycling capabilities.  

• And other site enhancements.    

“Calumet continues to execute on our strategic catalysts as planned,” said CEO Todd Borgmann. “We started the quarter with the conversion of Calumet’s structure from a MLP to a C-Corp, and in October we announced the conditional commitment of a $1.44 billion DOE loan guarantee. We remain confident and on-track to close the DOE loan as previously disclosed. Further, we are pleased to report significant progress towards fortifying our operations, with our specialties business achieving a new production record and Montana Renewables reaching a new SAF production high.  These new operational milestones and continued execution against our strategic initiatives support our relentless focus on driving shareholder value. Last, as we’ve previously expressed, we would like to thank the DOE, and we are thrilled to continue forward on the leading edge of our nation’s SAF opportunity. Innovation is at the heart of what we do at Calumet, and we are honored that Montana Renewables can help solidify our nation’s position as a global leader in one of energy’s fastest-growing markets.”  

Overall, Calumet reported a net loss of $100.6 million for the third quarter.