OKLAHOMA CITY, OKLAHOMA – Comstock Fuels Corporation, a subsidiary of Comstock Inc. (NYSE: LODE), has sealed a $14 million equity investment from Marathon Petroleum Corporation (NYSE: MPC), announced on February 28, 2025, to advance its lignocellulosic biomass refining technology. The infusion—comprising $1 million in cash and $13 million in payment-in-kind assets from Marathon’s renewable fuel demonstration facility in Madison, Wisconsin—positions Comstock Fuels to expand its pilot production capacity beyond its current Wausau, Wisconsin operations. For SAF industry players, this deal underscores a pivotal collaboration with a refining giant to unlock new feedstock potential.
The Madison facility assets, including equipment and intellectual property, will accelerate Comstock Fuels’ path to a 400,000-barrel-per-year commercial demonstration refinery in Oklahoma, with sights set on 200 million barrels annually by 2035—roughly 8.4 billion gallons, a mix of SAF, renewable diesel, and other fuels. By tapping into lignocellulosic biomass, Comstock sidesteps the constraints of conventional feedstocks like corn and soy, which meet only a fraction of U.S. fuel demand. With the U.S. Department of Energy estimating one billion tons of available biomass yearly, Comstock’s technology could yield over 3 billion barrels of fuel, offering SAF buyers a robust, scalable supply alternative.
“We’re excited to collaborate with Marathon’s team as we work to integrate the Madison Facility and advance our unique renewable fuels technology to commercial maturity.” – Kevin Kreisler, Chief Technology Officer, Comstock Fuels
Financially, the deal elevates Comstock Fuels’ growth trajectory while aligning with Marathon’s renewable fuel strategy. The investment secures Marathon board observation rights and sets a May 31, 2025, deadline for finalizing offtake, joint development, and warrant agreements—critical steps to lock in market commitments. “We’re excited to collaborate with Marathon’s team as we work to integrate the Madison Facility and advance our unique renewable fuels technology to commercial maturity,” said Kevin Kreisler, Comstock Fuels’ chief technology officer. This partnership could drive down SAF production costs by leveraging Marathon’s refining expertise and Comstock’s high-yield process, which achieves up to 140 gallons per dry metric ton.
Comstock’s exclusive rights to Hexas Biomass Inc.’s energy crops further bolster its business case, promising up to 100 barrels of fuel per acre annually—a boon for agricultural partnerships and rural economies. For SAF stakeholders, this deal signals a shift toward diversified, high-volume supply chains, potentially reshaping pricing dynamics and investment opportunities as demand surges toward the U.S.’s 35-billion-gallon SAF target by 2050.
