Montana Renewables Announces Innovative, Capital-Efficient Expansion to 200 Million Gallons of Sustainable Aviation Fuel (Form 8-K)

Montana Renewables Announces Innovative, Capital-Efficient Expansion to 200 Million Gallons of Sustainable Aviation Fuel

•SAF production capacity expected to reach approximately 200 million gallon annual run rate by year-end 2028, with total renewable product sales expanded 40% to 17,000 barrels per day

•Remaining project capital for this expansion reduced to $137 million from the $1.2 billion contemplated in the original Phase 2 plan, driven by the repurposing of proven equipment from the adjacent Calumet Montana Refining asphalt facility through a series of quick-payback steps

•No third-party equity requirement provides simple capital structure and eliminates dilution, positioning MRL for future strategic opportunities; expansion is expected to be funded with Montana Renewables earnings alongside a final $34 million draw under a DOE loan

•Calumet Montana Refining will continue to produce retail asphalt and provide shared site cost efficiencies across both businesses, preserving all Great Falls jobs

INDIANAPOLIS - September 1, 2026 - Calumet, Inc. (NASDAQ: CLMT) ("Calumet," "we," "our" or "us") announced today a new flight plan for its MaxSAF® expansion at Montana Renewables, LLC ("Montana Renewables" or "MRL"), an unrestricted subsidiary of Calumet. By repurposing proven, installed refining equipment from the adjacent Calumet Montana Refining ("CMR") facility, Montana Renewables expects to reach approximately 200 million gallons of annual Sustainable Aviation Fuel ("SAF") production and 17,000 barrels per day of total product sales by year-end 2028. The total remaining project capital spend for this expansion is $137 million, compared to the $1.2 billion megaproject contemplated in the original loan issued by the U.S. Department of Energy ("DOE") through its Office of Energy Dominance Financing ("EDF").

Reflecting the dramatically lower capital requirement, Montana Renewables and EDF have amended the Loan Guarantee Agreement ("LGA") originally executed in January 2025. Phase 2 DOE funding is reduced from up to $658 million to a single, final draw of $34 million, with the balance of the expansion self-funded from MRL earnings. The original agreement required the project's full equity to be committed before Phase 2 construction. The amended structure requires no third-party equity, thereby eliminating dilution and preserving a simple capital structure for future strategic opportunities while accelerating the benefits of increased throughput, SAF, improved yields, and reduced unit costs.

The centerpiece of the revised plan is the redeployment of selected CMR assets - a hydrotreater, hydrogen plant, and naphtha splitter - to Montana Renewables under a long-term lease. The tied-in hydrotreater creates a proprietary dual reactor system that runs in a "polishing" service rather than the industry-standard "cracking" service, delivering competitively advantaged SAF yields while lowering by-product production and reducing yield loss. Several additional modular components, including a third renewable fuels reactor currently offsite, provide the ability to expand capacity beyond 200 million gallons over time.

Rather than a single large construction project, the new expansion is structured as six small, controllable, quick-payback projects, each designed to increase returns and reduce construction risk. Following constraint removal completed at the Spring 2026 turnaround, Montana Renewables is currently producing at a run-rate of 60 million gallons of SAF per year; expects to exceed an 80 million gallon run-rate by year-end 2026; surpass 120 million gallons by Spring 2027; and reach approximately 200 million gallons by year-end 2028. The program also captures approximately 20 million gallons per year of renewable propane and butane - previously burned as fuel gas - as saleable product, improves renewable naphtha yields, and reduces unit operating costs through scale and lower water usage.

The reconfiguration represents the next evolution of more than a decade of modernization at the Great Falls site under Calumet's ownership. The turnaround to complete the tie-in is scheduled for the fourth quarter of 2026 - timing that allows CMR to capture approximately $50 million of EBITDA at currently elevated global refining margins before the transition. CMR will remain in service, continuing to produce high-quality retail asphalt, retaining all employees, and providing shared cost efficiencies across the full site.

"Our amended agreement with the DOE facilitates innovative technology and domestic energy security at a fraction of the original cost," said Todd Borgmann, CEO of Calumet. "EDF's willingness to right-size the LGA reflects its ongoing support for Montana's largest agricultural investment. We look forward to our continued collaboration with the DOE on the success of this project."

"We've worked hard to unleash the ingenuity of our engineering and operational teams, and they developed a project that captures approximately 70% of the originally expected benefit while spending only 15% of the originally expected Phase 2 capital," Borgmann continued. "The DOE has kept our nation's energy independence goals at the forefront while demonstrating tremendous flexibility in thoughtfully working with us to adjust the loan. MRL was honored to be the first project to receive the support of the current Administration, and we thank the entire DOE team for its continued commitment to this key component of America's energy infrastructure. With the DOE's support, Montana Renewables continues to strengthen its position as one of the world's largest SAF producers while supporting regional agriculture, the Montana business community, our employees, and our shareholders."

The expansion increases MRL's total feedstock consumption to approximately 2 billion pounds of ranch- and farm-originated feedstocks, converted into American-made renewable jet fuel, diesel, and gasoline annually, while continuing to grow Montana's wage and tax base with highly skilled technical employment in a rural community.

Amended Loan Guarantee Structure

The DOE loan remains structured in two tranches. The first tranche of $782 million was funded in February 2025 and used to recapitalize MRL, including an additional $150 million equity investment by Calumet with cash on hand. Under the amended agreement, the remaining loan availability is reduced to a single, final draw of $34 million - down significantly from the previous additional draw of up to $658 million, which MRL expects to receive shortly, subject to the satisfaction of certain commercial, technical, and legal conditions precedent.

During construction, retained earnings from MRL are expected to supplement DOE funds to maintain debt at less than 55% of eligible spending. The loan retains its 15-year tenor and an annual interest rate of the U.S. Treasury rate plus 3/8%, with servicing of principal and interest deferred until MaxSAF® is commissioned. The March 2029 first servicing date and December 2039 maturity remain unchanged. The amended LGA will be filed with the Securities and Exchange Commission ("SEC"), and investors should refer to the filed agreement for complete terms.

About Montana Renewables

Montana Renewables (MRL) is a leading renewable fuel company located in Great Falls, Montana. We produce Sustainable Aviation Fuel (SAF), Renewable Diesel, Renewable Hydrogen, and Renewable Naphtha. As one of only three SAF producers running at commercial scale in North America, we meet the increasing demand for sustainable jet fuels. 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 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.