Calumet eyes renewable diesel production at Great Falls, Montana, refinery

Calumet Specialty Products Partners L.P. hinted at the possibility of future renewable diesel production at its Great Falls, Montana, refinery, according to a mid-February press release the company issued.

The company stated it believes Great Falls presents one of the most compelling opportunities for renewable diesel in North America, as it connects western agriculture with West Coast and Canadian clean product markets.

Calumet said the oversized hydrocracker built in 2016 can be reconfigured to process between 153 and 184 MMgy of renewable feedstock “at the lowest capital cost per barrel of any announced industry project,” adding that hydrocracker conversions are “typically faster to market, cheaper, and less technically challenging.”

In addition, the company said “the planned configuration could retain [153 to 184 MMgy] low-cost Canadian crude processing, providing Montana customers with clean energy and our unique specialty asphalt. Future dual train operations are currently estimated to generate $220 million to $260 million of adjusted EBITDA assuming mid-cycle market prices and existing environmental market structure (BTC, RINs, LCFS).”

Calumet expects to utilize third-party equity, not its own funds, for this “unique opportunity,” given the strong investor interest in renewables.

Biobased Diesel Daily called Calumet for further details, such as more information on the technical aspects of its plans, a timeline, and what feedstocks it intends to use in Great Falls, Montana, but a representative could only say more information may be provided during an earnings call in early March. Updates will be provided when more information is obtained.