Calumet to begin renewable diesel production this fall

Calumet Specialty Products Partners L.P. expects to begin producing renewable diesel at its facility in Great Fall, Montana, within the next 60 to 70 days, according to comments made by CEO Todd Borgmann during a second quarter earnings call on Aug. 5.

Calumet in February 2021 announced plans to produce renewable diesel at its petroleum refinery in Great Falls. The company is working to reconfigure its oversized hydrocracker to process up to 15,000 barrels per day of renewable feedstocks, producing renewable diesel and sustainable aviation fuel (SAF).

According to Borgmann, the renewable diesel and SAF output from the facility has been sold at commercial terms superior to what the company expected in its financial models. He noted that off-take contracts have been executed with three primary customers, including Phillips 66 and Chevron Renewable Energy Group.

Borgmann also said that feedstock purchasing for the facility is continuing “to progress much better than anyone expected.” A supply of feedstock for startup has been secured, he added, noting that the company recently brought a couple hundred rail cars into service that started delivering renewable feedstock in June.