Calumet leases refinery assets to Montana Renewables for MaxSAF expansion
CLMT•Calumet entered a long-term asset lease supporting Montana Renewables’ MaxSAF expansion, providing approximately $30 million in annual lease income, subject to adjustments. The revised expansion requires $137 million in remaining capital spending and targets annual production of approximately 200 million gallons of sustainable aviation fuel by year-end 2028.
1. Lease and revised spending
Calumet entered a long-term asset lease supporting Montana Renewables’ MaxSAF expansion, which is expected to provide approximately $30 million in annual lease income, subject to adjustments. The revised expansion requires $137 million in remaining capital spending, compared with the $1.2 billion project originally contemplated.
2. Ownership and targets
Production targets remain approximately 200 million gallons of sustainable aviation fuel annually and 17,000 barrels daily in total product sales by year-end 2028. Warburg Pincus will exchange its 13.17% ownership for warrants covering up to 8% of Montana Renewables Holdings’ common equity above $750 million. Its preferred return rate will rise to 11.5% from 8% under the amended agreement.
