Calumet Specialty Products’ Montana Renewables is constructing a green hydrogen plant that collects the hydrogen gases from its renewable diesel reactor and recycles the hydrogen for reuse within the facility using a technology patent pending as of April 2024.

The new plant will supply hydrogen to the facility’s hydrocracker, which converts renewable feedstocks into renewable fuel products. In August, 2022, Warburg Pincus, a leading global growth investor, agreed to invest $250 million in MRL in the form of a participating preferred equity security, which values MRL at a pre-commissioning enterprise value of $2.25 billion. The preferred equity investment is not interest-bearing and carries certain minimum return thresholds. In connection with the investment, Warburg Pincus will have a representative on MRL’s four-member board of managers.

Calumet also announced that Stonebriar Commercial Finance has invested an additional $350 million through a pair of sale and leaseback contracts on top of its existing $50 million commitment to MRL. The sale and leaseback transactions carry an approximate 12.3% cost of capital and offer certain strategic early termination options. Concurrent with these transactions, the $300 million convertible investment from Oaktree Capital Management L.P.  in MRL has been retired.