Calumet Inc. Announces 2 New Transactions, Boosting Renewable Propane

INDIANAPOLIS (Nov. 5, 2026) — Calumet Inc. announced two transactions designed to support the continued development of Montana Renewables LLC (Montana Renewables or MRL), an unrestricted subsidiary of Calumet, and advance the company’s MaxSAF expansion plans.

First, Calumet Montana Refining, LLC (CMR), a restricted subsidiary of Calumet, entered into a long-term lease agreement with MRL for certain CMR assets used in the expansion. The agreement is expected to provide CMR with approximately $30 million of annual lease income, subject to certain adjustments, while making critical equipment available to MRL for use in producing increased SAF volume, capturing renewable propane, reducing naphtha yield and increasing total throughput.  

In a related transaction, Calumet also amended its existing agreement with Warburg Pincus LLC (Warburg Pincus).

Under the amended agreement, Warburg Pincus will exchange its 13.17% ownership in Montana Renewables Holdings LLC (MRH) for warrants to acquire up to 8% of MRH’s common equity, exercisable above a $750 million common equity value and its preferred return rate will increase to 11.5%. 

“These transactions strengthen our ability to advance Montana Renewables by providing the critical assets essential to the MaxSAF expansion and the capture of 70% of the originally expected economic project benefit for approximately 15% of the planned capital,” said Todd Borgmann, CEO of Montana Renewables. “We appreciate the U.S. Department of Energy and Warburg Pincus, whose continued partnership and support provides additional flexibility as we execute our revised expansion plan. Together, we are strengthening Montana Renewables’ position as one of the world’s largest SAF producers while supporting American agriculture, the Montana business community, our employees, and our shareholders.”

Combined, these agreements support the previously announced MaxSAF expansion plan. The revised plan centers on the redeployment of selected CMR assets to Montana Renewables under a long-term lease, including a hydrotreater, hydrogen plant, naphtha splitter and equipment to recover renewable propane. The tied-in hydrotreater creates a proprietary dual reactor system that runs in a polishing service rather than the industry-standard cracking service, delivering competitively advantaged SAF yields while lowering by-product production and reducing yield loss. As disclosed previously, CMR will continue to operate its asphalt production facility.

Repurposing proven, installed refining equipment from the adjacent CMR facility is the next step in the expansion that ultimately plans to reach approximately 200 million gallons of annual Sustainable Aviation Fuel (“SAF”) production and 17,000 barrels per day of total product sales by year-end 2028. The total remaining project capital spend for this expansion is $137 million, compared to the $1.2 billion megaproject contemplated in the original loan issued by the U.S. Department of Energy (“DOE”) through its Office of Energy Dominance Financing.  

For further resources on renewable propane and sustainable energy solutions, take a look at BPN’s Renewable Propane section.