Calumet provides operational update for Montana renewables LLC.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (“Calumet,” “we,” “our” or “us”) provided an operational update on its Montana Renewables LLC business.
Montana Renewables, LLC
Montana Renewables LLC (“MRL”) estimates adjusted EBITDA of $14.2 million in July, excluding contributions from the specialty asphalt refinery. MRL’s EBITDA was $1.23 per gallon overall and $1.35 per gallon on untreated feedstock, in line with guidance. Untreated feedstock comprised 70% of the feed mix in July.
A leak in the steam recovery system on the renewable hydrogen plant was identified earlier this month which will limit throughput until repaired. The repair is expected to be completed in late September. Montana Renewables’ redundant hydrogen systems allow the plant to continue to run, albeit at reduced rates.
MRL presently estimates 8,000 to 8,500 barrels per day of renewable product sales for the third quarter, and the plant is currently processing all untreated feed. Pre-treater debottlenecking continues, and in August the unit demonstrated the ability to process 11,000 barrels per day of untreated feedstock. Throughput rates at the legacy specialty asphalt side of the operation remain at full levels.
Bruce Fleming, CEO Montana Renewables and EVP Corporate Development said:
We are pleased with a very competitive July margin performance in line with our guidance of $1.25 to $1.45 per gallon.
“Margin per gallon will continue to increase as the percentage of untreated feed grows and fixed costs spread over a larger throughput volume after the steam system is repaired.”
Todd Borgmann, CEO Calumet said:
I’d like to thank our operations team for detecting an issue in the steam system, bringing it down safely, and quickly developing a repair plan that targets resuming full production by the end of this quarter.
“July’s financial performance is additional confirmation of Montana Renewables’ advantaged competitive position, and we remain on track strategically with our MaxSAF engineering, Department of Energy funding process, and ultimate monetization plans all progressing well.”
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Calumet Provides Operational Update for Montana Renewables LLC, INDIANAPOLIS, August 31, 2023
