Montana Renewables Receives First Shipment of Camelina Oil

Calumet Specialty Products Partners LP subsidiary Montana Renewables LLC (MRL) has received its first shipment of camelina oil for its Great Falls renewable fuels facility in Montana.

MRL consumes over 1.5 billion pounds per year rendering wastes and seed oils that are used to produce renewable diesel and sustainable aviation fuel, according to the company.

"We are pleased to add 2023 USA-produced Camelina Oil to our existing feeds which already include canola oil, corn oil, and tallow", MRL CEO Bruce Fleming said in a news release Monday. "Today's deliveries further demonstrate Montana Renewables' feedstock advantage. While our ARA pre-treater technology provides the ability to run feed from anywhere in the world, Camelina is indigenous to Montana.

"The low carbon intensity and non-food nature of this oil makes [sic] Camelina an exciting addition to our already competitively advantaged MRL platform. And by providing a market in Montana we are creating long-term benefits for Montana farm and ranch producers who grow most of the country's Camelina today".

"MRL already supports 1 to 2 million acres of farm and ranch activity in canola, corn, and cattle, but the associated seed crushing and meat packing occurs out of State”, Fleming added. “Our vision is to attract seed crushing and meat packing facilities to Montana to further spread the benefits of lower carbon emissions, lower freight costs, and higher agricultural activity".

MRL said it converts 15,000 barrels per stream day of renewable feedstock into low-emission sustainable alternatives that directly replace fossil fuel products. Commercial operations began in late 2022.  The company says it is the largest sustainable aviation fuel producer in the Western hemisphere, with its renewable products being delivered to Canada and the USA West Coast.

In July, MRL reported an adjusted EBITDA of $14.2 million, 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 its released guidance.  Untreated feedstock comprised 70 percent of the feed mix in July, the company said in an earlier release.

MRL identified a leak in the steam recovery system on the renewable hydrogen plant, which will limit throughput until it is repaired, with repair completion expected in late September. The company’s redundant hydrogen systems allow the plant to continue to run 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, according to the company.

In August the unit demonstrated the ability to process 11,000 barrels per day of untreated feedstock, it said. MRL said throughput rates at the legacy specialty asphalt side of the operation remain at full levels.

"We are pleased with a very competitive July margin performance in line with our guidance of $1.25 to $1.45 per gallon", Fleming said.

"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”.

"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", Calumet CEO Todd Borgmann said. "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”.

To contact the author, email rocky.teodoro@rigzone.com