Calumet Eyes U.S. SAF Growth Amid Rocky Global Refining Market

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

While the Middle East conflict is upending the global market for base oils, specialty refiner Calumet is upbeat in its assessment of the SAF market, for which it is boosting capacity in the U.S.

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Flying High with SAF

Calumet Incorporated, which operates four refineries and two lube-oil processors in the U.S., is optimistic about the future of sustainable aviation fuel (SAF), for which it is adding capacity at one of its major facilities. However, executives acknowledged ongoing violence in the Middle East is affecting the market for base oils. Industrial Info Resources is tracking more than $900 million worth of active and proposed projects from Calumet, about 75% of which is attributed to its refinery in Great Falls, Montana.

The Great Falls Refinery is home to Montana Renewables, a Calumet subsidiary that produces renewable diesel and SAF from feedstock such as soybean oil, canola oil, corn oil and beef tallow. During the second quarter, "Montana Renewables completed the first stage of our MaxSAF 150 expansion and is advancing toward a faster, highly capital-efficient next stage expansion," said Todd Borgmann, the chief executive officer of Calumet, in a quarterly earnings-related press release.

The first stage of the project is expected to bring the facility's actual SAF production to "over 120 million gallons by the spring of 2027," Borgmann said in the earnings call; when completed, the full expansion (to be called MaxSAF 300) is expected to bring to as much as 300 million gallons per year.

Earlier this year, Montana Renewables announced a three-year agreement with low-carbon solutions provider World Energy Clean Fuels LLC that will deliver more than 70 million gallons of the SAF produced at Great Falls to the market. Technology provided by World Energy Clean Fuels is designed to reduce up to 600,000 metric tons of carbon dioxide (CO2) emissions.

Industrial Info Resources offers more information on this ongoing development in its Global Market Intelligence (GMI) Petroleum Refining Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

According to Industrial Info Resources data, $570 million worth of development is ongoing as part of the MaxSAF project. Related projects include a new, 40 million-standard-cubic-foot-per-day hydrogen unit; an expansion to an existing hydrogen unit; and the addition of a 20-megawatt (MW) cogeneration unit. Readers can learn more about these developments from a detailed list of project reports.

By the Numbers

• More than $900 million: Total value of active and proposed projects from Calumet
• More than 120 million gallons: Total SAF expected to be produced at Great Falls by the spring of 2027
• $570 million: Total value of ongoing development as part of the MaxSAF project

Staying in Touch with the 'Base'

Calumet reported a net loss of $95.9 million for second-quarter 2026, compared with a net loss of $147.9 million in the same period last year. Total sales stood at $1.45 billion, a 40.8% increase from second-quarter 2025.

Much of the net loss was attributed to the U.S. Environmental Protection Agency's (EPA) decision earlier this year to effectively increase renewable volume obligations (RVOs), thus increasing prices associated with Renewable Identification Numbers (RINs). For more details, see June 24, 2026, article - EIA: Some RIN Prices Double in 2026 with Higher Blending Requirements.

In a quarterly earnings-related conference call, Borgmann also pointed to the global market for paraffinic base oils, which are mineral oils derived from petroleum crude oil that feature a chemical structure made of alkanes. More than 10% of the global capacity for paraffinic base oils is offline due to the ongoing conflict in the Middle East, leaving the market structurally imbalanced, Borgmann said.

Calumet's sales volumes for the second quarter averaged 87,722 barrels per day (bpd), a 1.2% drop from the same period last year; for the first half of 2026, sales volumes averaged 87,377 bpd, statistically unchanged from the first half of 2025. Among Calumet's stronger-performing products in the second quarter was lubricating oils, which saw an average 13,318 bpd in the second quarter and 12,827 bpd in the first half of 2026, representing year-over-year increases of 11.5% and 10%, respectively.

Calumet is looking into upgrades at its refined lubricants plant in Karns City, Pennsylvania. In addition to a series of piping upgrades set to kick off later this year, the company is evaluating a proposed unit addition and a proposed storage-tank expansion. Karns City has a base oil throughput capacity of 3,000 bpd.

Readers can consult a plant profile and detailed reports on the piping upgrades and proposed unit addition and storage-tank expansion.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for active and proposed projects from Calumet.

Key Takeaways

• Calumet subsidiary Montana Renewables is making rapid progress on its MaxSAF expansion at the Great Falls Refinery.
• Montana Renewables recently announced a three-year agreement that will support SAF production.
• The global market for paraffinic base oils has taken a hit from conflict in the Middle East.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).