Calumet, the specialty refiner, has unveiled plans to expand the capacity of its Montana Renewables refinery and increase sustainable aviation fuel (SAF) production pending a final investment decision. The company’s board has approved the addition of 3,000 barrels per day (b/d) to the Great Falls facility, bringing the total capacity to 18,000 b/d. While it remains uncertain whether this additional capacity will be used to produce SAF, Calumet has been evaluating the engineering requirements since August.
The Montana Renewables plant has recently faced some challenges, including a leak in its renewable hydrogen plant’s steam recovery system in August. As a result, repairs are currently underway, with a planned turnaround originally scheduled for early 2024 being brought forward to November of this year. Calumet anticipates completing the repair work in November, and until the scheduled turnaround commences, the refinery will operate at reduced throughputs. Following the completion of the turnaround, production is forecasted to exceed 12,000 b/d by December.
In addition to the issues faced at the Montana Renewables refinery, Calumet’s Shreveport facility in Louisiana underwent maintenance in the third quarter due to a weather-related disruption that occurred in the previous quarter. This maintenance downtime resulted in a decline of 300,000 barrels in lube oil and wax sales in the third quarter. At present, the Shreveport plant is processing a minimum of 45,000 b/d of feedstock.
By expanding its Montana Renewables refinery capacity and potentially maximizing SAF production, Calumet aims to strengthen its position as a specialty refiner. These developments reflect the company’s commitment to meeting the growing demand for renewable energy and sustainable solutions in the aviation sector, aligning with the industry’s broader goals of reducing carbon emissions and environmental impact.
As Calumet awaits a final investment decision on the production of sustainable aviation fuel, the expansion of its Montana Renewables refinery signifies a significant step towards enhancing its capabilities in the renewable energy sector. The company’s efforts to repair and maintain its refining facilities demonstrate its commitment to ensuring safe and efficient operations. Moreover, with the projected completion of the steam recovery system repair in November, Calumet is on track to resume normal production levels and contribute to the domestic supply of refined products.
While the future expansion and potential focus on sustainable aviation fuel production remain pending, Calumet’s decision to explore these opportunities underscores the importance of transitioning to cleaner and greener alternatives in the energy industry. As climate change concerns grow, so does the demand for renewable fuels that can help mitigate the environmental impact of traditional fossil fuels.
In conclusion, Calumet’s plans to expand the capacity of its Montana Renewables refinery and potentially increase sustainable aviation fuel production reflect its commitment to renewable energy initiatives. With repairs underway and the anticipation of a production turnaround, the company remains focused on delivering safe and efficient operations. The continued exploration of sustainable alternatives demonstrates Calumet’s dedication to environmental stewardship and meeting the evolving needs of the energy sector.
