INDIANAPOLIS, Jan. 28,
2025 /PRNewswire/ -- Calumet, Inc. (NASDAQ: CLMT)
("Calumet," the "Company," "we," "our" or "us") has been informed
by the U.S. Department of Energy ("DOE") Loan Programs Office
("LPO") that the first tranche of approximately $782 million under the guaranteed loan facility
that was previously approved for funding today, January 28, will undergo a tactical delay to
confirm alignment with White House priorities. The loan
facility, which closed on January 10,
will fund the construction and expansion of the renewable fuels
facility in Great Falls, Montana,
owned by Montana Renewables, LLC ("Montana Renewables" or "MRL"),
an unrestricted subsidiary of Calumet. The Company was informed
that the delay should be days or weeks.
"We are well aligned with White House priorities to support
domestic agriculture, energy security, technical innovation and
energy independence, all of which play a role in the tremendous
bipartisan support this loan has received since its inception,"
said Todd Borgmann, CEO of
Calumet. "The recently issued Executive Order specifically
highlights the importance of biofuels to our nation's domestic
energy policy and energy independence, and we look forward to a
quick review confirming that we are aligned with the
Administration's goals."
Regional Development
An economic impact study1 produced by the
University of Montana Bureau of
Business and Economic Research (BBER) measured the substantial
benefit to Montana in the form of jobs, income,
government revenues, economic output and population. For example,
by 2028, the economic footprint of the Great Falls site
is expected to support a population of 4,400 Montanans, consisting
primarily of working-aged families and their children.
MRL expects the expansion to catalyze additional regional
development, particularly for renewable feedstocks sourced from
farms and ranches. By driving local infrastructure development in
transportation, agricultural and energy related businesses similar
to the Minnesota SAF Hub, MRL will create a large-scale,
end-to-end SAF industry comprised of public and private partners
in Montana and the Pacific Northwest.
The MRL expansion is expected to create 450 construction jobs
and up to 40 operations jobs.
About Montana Renewables
Montana Renewables is a
leading renewable fuel company located in Great Falls, Montana. MRL produces Sustainable
Aviation Fuel, Renewable Diesel, Renewable Hydrogen and Renewable
Naphtha. As the largest SAF producer in North America (2024), MRL is dedicated to
meeting the increasing demand for sustainable fuels and to
supporting a greener future. As a Great
Falls business leader, MRL offers high-paying jobs and
career opportunities while supporting the local economy and
contributing to the community's overall well-being. Pacific
Northwest farm and ranch operations ultimately provide MRL with
sustainable, renewable, low-carbon feedstocks and agricultural
byproducts including tallow, distillers corn oil, canola oil, used
cooking oil and camelina oil. These feedstocks are converted
to renewable transportation fuels which have lower emissions
compared to conventional fossil fuels. MRL is an unrestricted
subsidiary of Calumet, Inc.
About Calumet
Calumet, Inc. (NASDAQ: CLMT)
manufactures, formulates, and markets a diversified slate of
specialty branded products and renewable fuels to customers across
a broad range of consumer-facing and industrial markets. Calumet is
headquartered in Indianapolis,
Indiana and operates twelve facilities throughout
North America.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements and information in this press
release may constitute "forward-looking statements." The words
"will," "may," "intend," "believe," "expect," "outlook,"
"forecast," "anticipate," "estimate," "continue," "plan," "should,"
"could," "would," or other similar expressions are intended to
identify forward-looking statements, which are generally not
historical in nature. The statements discussed in this press
release that are not purely historical data are forward-looking
statements, including, but not limited to, the statements regarding
(i) our expectations regarding the funding of the loan facility
(the "DOE Facility") that MRL received from the DOE LPO, including
the timing of any disbursements, length of any delays in funding
and the intended use of borrowings under such facility, (ii) our
expectation that the DOE Facility will enable MRL to complete the
MaxSAF™ construction and that such project will be completed on
time and on budget, (iii) our expectation regarding our business
outlook and cash flows, including with respect to the Montana
Renewables business, and (iv) our ability to meet our financial
commitments, debt service obligations, debt instrument covenants,
contingencies and anticipated capital expenditures. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. Our forward-looking statements involve significant
risks and uncertainties (some of which are beyond our control) and
assumptions that could cause our actual results to differ
materially from our historical experience and our present
expectations or projections. Known material factors that could
cause actual results to differ materially from those in the
forward-looking statements include, but not limited to: the overall
demand for renewable fuels, including SAF and RD; our ability to
produce renewable fuel products that meet our customers' unique and
precise specifications; the marketing of alternative and competing
products; the impact of fluctuations and rapid increases or
decreases in renewable fuel margins, including the resulting impact
on our liquidity; our ability to comply with financial covenants
contained in our debt instruments; labor relations; our access to
capital to fund expansions, acquisitions and our working capital
needs and our ability to obtain debt or equity financing on
satisfactory terms; environmental liabilities or events that are
not covered by an indemnity, insurance or existing reserves;
maintenance of our credit ratings and ability to receive open
credit lines from our suppliers; demand for various feedstocks and
resulting changes in pricing conditions; fluctuations in refinery
capacity; our ability to access sufficient feedstocks; the effects
of competition; continued creditworthiness of, and performance by,
counterparties; the impact of current and future laws, rulings and
governmental regulations shortages or cost increases of power
supplies, natural gas, materials or labor; weather interference
with business operations; administration changes in the federal
government and potential legislative enactments, executive orders
and administrative actions; our ability to access the debt and
equity markets; accidents or other unscheduled shutdowns; and
general economic, market, business or political conditions,
including inflationary pressures, instability in financial
institutions, general economic slowdown or a recession, political
tensions, conflicts and war (such as the ongoing conflicts in
Ukraine and the Middle East and their regional and global
ramifications).
For additional information regarding factors that could cause
our actual results to differ from our projected results, please see
our filings with the SEC, including the risk factors and other
cautionary statements in the latest Annual Report on Form 10-K of
Calumet Specialty Products Partners, L.P. (the "Partnership") and
other filings with the SEC by Calumet, Inc. and the
Partnership.
We caution that these statements are not guarantees of future
performance and you should not rely unduly on them, as they involve
risks, uncertainties, and assumptions that we cannot predict. In
addition, we have based many of these forward-looking statements on
assumptions about future events that may prove to be inaccurate.
While our management considers these assumptions to be reasonable,
they are inherently subject to significant business, economic,
competitive, regulatory and other risks, contingencies and
uncertainties, most of which are difficult to predict and many of
which are beyond our control. Accordingly, our actual results may
differ materially from the future performance that we have
expressed or forecast in our forward-looking statements. Readers
are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made. We
undertake no obligation to publicly update or revise any
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise, except to
the extent required by applicable law. Certain public statements
made by us and our representatives on the date hereof may also
contain forward-looking statements, which are qualified in their
entirety by the cautionary statements contained above.
1
https://www.bber.umt.edu/pubs/Econ/Calumet-Impact-Report.pdf
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SOURCE Calumet, Inc.
