(PRNewswire)—Calumet Specialty Products Partners, L.P. provided an operational update on its Montana Renewables LLC business. Montana Renewables LLC (MRL) estimates adjusted EBITDA of $14.2 MM in July, excluding contributions from the specialty asphalt refinery. MRL's EBITDA was $1.23/gallon (g) overall and $1.35/g on untreated feedstock, in line with guidance. Untreated feedstock comprised 70% of the feed mix in July.

A leak in the steam recovery system on the renewable H₂ plant was identified earlier this month which will limit throughput until repaired. The repair is expected to be completed in late September. Montana Renewables' redundant H₂ systems allow the plant to continue to run, albeit at reduced rates. MRL presently estimates 8,000 bpd–8,500 bpd of renewable product sales for the third quarter, and the plant is currently processing all untreated feed. Pretreater debottlenecking continues, and in August the unit demonstrated the ability to process 11,000 bpd of untreated feedstock. Throughput rates at the legacy specialty asphalt side of the operation remain at full levels.

"We are pleased with a very competitive July margin performance in line with our guidance of $1.25/g–$1.45/g," said Bruce Fleming, CEO Montana Renewables and EVP Corporate Development. "Margin per gallon will continue to increase as the percentage of untreated feed grows and fixed costs spread over a larger throughput volume after the steam system is repaired."

"I'd like to thank our operations team for detecting an issue in the steam system, bringing it down safely, and quickly developing a repair plan that targets resuming full production by the end of this quarter," said Todd Borgmann, CEO Calumet. "July's financial performance is additional confirmation of Montana Renewables' advantaged competitive position, and we remain on track strategically with our MaxSAF engineering, Department of Energy funding process, and ultimate monetization plans all progressing well."