Calumet closes financing to construct renewable hydrogen plant
Calumet Specialty Products Partners, L.P. announced that Montana Renewables LLC (MRL) has closed the previously announced USD50 million of project financing from Stonebriar Commercial Finance LLC related to the construction of the renewable hydrogen plant for Calumet’s renewable diesel business in Great Falls, Montana, U.S.A.
Once complete, the renewable hydrogen plant will allow increased production of renewable diesel and further reduce the carbon intensity of products from Montana Renewables LLC.
The renewable hydrogen plant has an expected operational startup in the fourth quarter of 2022.
In November 20221, Calumet Specialty Products Partners, L.P. announced a series of strategic transactions in connection with its renewable diesel business. The transactions established Montana Renewables LLC as an unrestricted pure-play renewables subsidiary of Calumet.
Calumet’s operations in Montana now include two fully independent business lines: Renewables through MRL, and conventional Canadian crude refining through Calumet Montana Refining LLC (CMR).
MRL will complete its in-flight capital projects and is expected to become one of the most advantaged renewable diesel producers in North America. MRL’s existing hydrocracker metallurgy of 317L stainless steel is well-suited for renewable feedstock processing; MRL’s unique renewable hydrogen project further lowers carbon intensity and maximizes renewable diesel production; and a new state of the art feedstock pre-treater combined with proximity to temperate oilseeds and low-carbon product markets will provide MRL with significant sourcing and logistics advantages.
Last year, MRL closed on a USD300 million convertible debt investment from funds managed by Oaktree Capital Management, L.P.. MRL also closed on a USD145 million preferred equity investment by Calumet. Calumet owns 100% of the equity of MRL.
CMR will continue to own and operate the conventional Great Falls Specialty Refinery with a reconfigured processing capacity of 12,000 barrels per day of Canadian crude. The refinery is focused on the production of high-quality specialty asphalt, as well as satisfying local demand for conventional fuels. CMR anticipates the refinery will generate 60% of historical (pre-conversion) adjusted EBITDA after the hydrocracker is separated. Calumet owns 100% of the equity of CMR.
