Calumet Specialty Products Partners announced that its subsidiary Montana Renewables LLC (MRL) closed the previously announced US$50 million project financing for building the renewable hydrogen plant in Great Falls, Montana, US.
The transaction is related to Stonebriar Commercial Finance LLC. MRL signed the US$50 million letter of intent with Stonebriar Commercial Finance in November 2021. The purpose was to finance a renewable hydrogen plant to maximise renewable diesel production and further reduce MRL products’ carbon intensity (CI).
In November 2021, Calumet announced a series of strategic transactions connected with its Renewable Diesel business, which also resulted in the establishment of Montana Renewables, LLC as an unrestricted pure-play renewables subsidiary of Calumet.
Calumet’s operations in Montana include two fully independent business lines: Renewables through MRL and conventional Canadian crude refining through Calumet Montana Refining LLC.
MRL closed on a US$300 million convertible debt investment from funds managed by Oaktree Capital Management, L.P. MRL also closed on a $145 million preferred equity investment by Calumet, where Calumet owns 100% of the equity of MRL.
Once the project is completed, the renewable hydrogen plant will allow increased production of renewable diesel and further reduce the carbon intensity of products from MRL. The renewable hydrogen plant has an expected operational startup in Q4 2022.