Comstock Fuels Completes Financing with Marathon Petroleum
Comstock Inc. (NYSE: LODE) has secured a strategic investment from Marathon Petroleum for its subsidiary Comstock Fuels The $14 million investment includes $1 million in cash and $13 million in payment-in-kind assets from Marathon's renewable fuel demonstration facility in Madison, Wisconsin.
The collaboration aims to advance Comstock Fuels' lignocellulosic biomass refining technology to commercial maturity. This technology converts previously inaccessible biomass feedstock into 'drop-in' hydrocarbon fuels compatible with existing petroleum infrastructure. According to DOE estimates, the U.S. could produce up to 1 billion tons of biomass annually, potentially yielding over 3 billion barrels of fuel using Comstock's solutions.
The agreement includes board observation rights for Marathon, with plans to finalize offtake, joint development, and warrant agreements by May 31, 2025.
Comstock Inc. (NYSE: LODE) ha ottenuto un investimento strategico da Marathon Petroleum per la sua sussidiaria Comstock Fuels. L'investimento di 14 milioni di dollari comprende 1 milione di dollari in contante e 13 milioni di dollari in beni pagati in natura provenienti dall'impianto di dimostrazione di carburanti rinnovabili di Marathon a Madison, Wisconsin.
La collaborazione mira a far progredire la tecnologia di raffinazione della biomassa lignocellulosica di Comstock Fuels verso una maturità commerciale. Questa tecnologia converte le materie prime di biomassa precedentemente inaccessibili in carburanti idrocarburici 'drop-in' compatibili con l'infrastruttura petrolifera esistente. Secondo le stime del DOE, gli Stati Uniti potrebbero produrre fino a 1 miliardo di tonnellate di biomassa all'anno, con un potenziale di oltre 3 miliardi di barili di carburante utilizzando le soluzioni di Comstock.
L'accordo include diritti di osservazione del consiglio per Marathon, con piani per finalizzare accordi di acquisto, sviluppo congiunto e warrant entro il 31 maggio 2025.
Comstock Inc. (NYSE: LODE) ha asegurado una inversión estratégica de Marathon Petroleum para su subsidiaria Comstock Fuels. La inversión de 14 millones de dólares incluye 1 millón de dólares en efectivo y 13 millones de dólares en activos pagados en especie de la instalación de demostración de combustibles renovables de Marathon en Madison, Wisconsin.
La colaboración tiene como objetivo avanzar la tecnología de refinación de biomasa lignocelulósica de Comstock Fuels hacia la madurez comercial. Esta tecnología convierte la materia prima de biomasa previamente inaccesible en combustibles hidrocarburados 'drop-in' compatibles con la infraestructura petrolera existente. Según las estimaciones del DOE, EE. UU. podría producir hasta 1 mil millones de toneladas de biomasa anualmente, lo que podría generar más de 3 mil millones de barriles de combustible utilizando las soluciones de Comstock.
El acuerdo incluye derechos de observación en la junta para Marathon, con planes para finalizar acuerdos de compra, desarrollo conjunto y warrants para el 31 de mayo de 2025.
Comstock Inc. (NYSE: LODE)는 Marathon Petroleum으로부터 자회사 Comstock Fuels에 대한 전략적 투자를 확보했습니다. 1,400만 달러의 투자에는 100만 달러의 현금과 Wisconsin주 Madison에 있는 Marathon의 재생 가능 연료 시연 시설에서 제공된 1,300만 달러의 현물 자산이 포함됩니다.
이 협력의 목표는 Comstock Fuels의 리그노셀룰로오스 바이오매스 정제 기술을 상업적 성숙도로 발전시키는 것입니다. 이 기술은 이전에 접근할 수 없었던 바이오매스 원료를 기존 석유 인프라와 호환되는 '드롭인' 탄화수소 연료로 변환합니다. DOE의 추정에 따르면, 미국은 매년 최대 10억 톤의 바이오매스를 생산할 수 있으며, Comstock의 솔루션을 사용하여 30억 배럴 이상의 연료를 생산할 수 있습니다.
이 계약에는 Marathon의 이사회 관찰 권리가 포함되어 있으며, 2025년 5월 31일까지 구매, 공동 개발 및 보증 계약을 최종화할 계획입니다.
Comstock Inc. (NYSE: LODE) a sécurisé un investissement stratégique de Marathon Petroleum pour sa filiale Comstock Fuels. L'investissement de 14 millions de dollars comprend 1 million de dollars en espèces et 13 millions de dollars en actifs en nature provenant de l'installation de démonstration de carburants renouvelables de Marathon à Madison, Wisconsin.
La collaboration vise à faire progresser la technologie de raffinage de biomasse lignocellulosique de Comstock Fuels vers une maturité commerciale. Cette technologie convertit des matières premières de biomasse auparavant inaccessibles en carburants hydrocarbonés 'drop-in' compatibles avec l'infrastructure pétrolière existante. Selon les estimations du DOE, les États-Unis pourraient produire jusqu'à 1 milliard de tonnes de biomasse par an, ce qui pourrait donner plus de 3 milliards de barils de carburant en utilisant les solutions de Comstock.
L'accord comprend des droits d'observation au conseil d'administration pour Marathon, avec des plans pour finaliser des accords d'achat, de développement conjoint et de bons de souscription d'ici le 31 mai 2025.
Comstock Inc. (NYSE: LODE) hat eine strategische Investition von Marathon Petroleum für ihre Tochtergesellschaft Comstock Fuels gesichert. Die 14 Millionen Dollar umfassende Investition beinhaltet 1 Million Dollar in bar und 13 Millionen Dollar in Sachleistungen aus Marathons Demonstrationsanlage für erneuerbare Brennstoffe in Madison, Wisconsin.
Die Zusammenarbeit zielt darauf ab, die Technologie zur Raffinierung von lignocellulosehaltiger Biomasse von Comstock Fuels zur kommerziellen Reife zu bringen. Diese Technologie verwandelt zuvor unzugängliche Biomasse-Rohstoffe in 'Drop-in'-Kohlenwasserstoffkraftstoffe, die mit der bestehenden Erdölinfrastruktur kompatibel sind. Laut Schätzungen des DOE könnte die USA jährlich bis zu 1 Milliarde Tonnen Biomasse produzieren, was potenziell über 3 Milliarden Barrel Kraftstoff mit Comstocks Lösungen ergeben könnte.
Die Vereinbarung umfasst Beobachtungsrechte im Vorstand für Marathon, mit dem Ziel, bis zum 31. Mai 2025 Abnahme-, gemeinsame Entwicklungs- und Optionsvereinbarungen abzuschließen.
- Strategic $14M investment from major industry player Marathon Petroleum
- Acquisition of valuable demonstration facility and equipment in Madison
- Technology capable of accessing vast untapped biomass feedstock market
- Potential offtake agreement with Marathon pending finalization
- Technology still in pilot phase, not commercially proven
- Final agreements with Marathon not yet secured, pending May 2025 deadline
- Only $1M received in cash, majority of investment in physical assets
Insights
The $14 million investment from Marathon Petroleum into Comstock Fuels represents a significant capital infusion for Comstock Inc., equivalent to approximately
This transaction delivers multiple strategic benefits beyond the immediate financial impact. The planned offtake agreement, to be finalized by May 31, could secure future revenue streams and provide commercial validation. Marathon's board observation rights indicate a deeper strategic alignment beyond simple financial investment, suggesting potential for expanded collaboration.
For a small-cap company like Comstock, securing a strategic partnership with an industry leader like Marathon Petroleum represents significant external validation of their technology approach and market potential. The deal structure—heavily weighted toward in-kind assets—allows Comstock to accelerate development while conserving cash resources. This partnership specifically addresses two critical barriers to commercialization: production scale capability and market access through an established distribution partner.
Comstock's lignocellulosic biomass refining technology addresses a fundamental limitation in the renewable fuels market. Current biofuel production primarily relies on food-competitive feedstocks (corn, soy, vegetable oils) which represent a tiny fraction of potential demand. In contrast, Comstock targets the estimated 1 billion tons of annual biomass capacity that could theoretically yield 3 billion barrels of fuel yearly.
The acquisition of Marathon's Madison demonstration facility represents an immediate scaling opportunity beyond Comstock's existing Wausau pilot operations. This facility integration should accelerate the technology's commercial timeline while reducing capital expenditure requirements that would otherwise be necessary for equivalent capacity expansion.
What sets Comstock's approach apart technically is its focus on producing "drop-in" hydrocarbon fuels compatible with existing petroleum infrastructure, eliminating the blend wall limitations and infrastructure modification requirements that challenge many alternative fuels. This alignment with conventional petroleum distribution systems is likely what attracted Marathon's interest, as it offers a pathway to meet renewable fuel requirements while leveraging existing assets.
The pending joint development agreement signals potential technology co-development opportunities that could further enhance Comstock's intellectual property portfolio while benefiting from Marathon's extensive refining expertise.
OKLAHOMA CITY, Feb. 28, 2025 (GLOBE NEWSWIRE) -- Comstock Inc. (NYSE: LODE) today announced a new investment and strategic collaboration with Marathon Petroleum Corporation (NYSE: MPC) to advance its lignocellulosic biomass refining solutions to commercial maturity. Comstock Fuels Corporation (“Comstock Fuels”), a subsidiary of Comstock Inc., has entered into a series of definitive agreements with subsidiaries of Marathon Petroleum Corporation (“Marathon”), involving the purchase of
The Investment includes
Comstock Fuels’ advanced lignocellulosic biomass refining solutions are designed to align with oil producers by converting massive supplies of historically inaccessible biomass feedstock into “drop-in” hydrocarbon fuels for use in existing petroleum-based infrastructure.
Most current forms of renewable fuel draw from the same pool of conventional feedstocks, including corn, soy and various vegetable oils in the U.S., and the entire universe of those feedstocks only represents a tiny fraction of the domestic fuel demand. In contrast, the U.S. Department of Energy has previously estimated that America can produce upwards of one billion tons per year of biomass for conversion into fuel. That’s enough untapped feedstock to produce more than 3 billion barrels of fuel per year with Comstock Fuels’ refining solutions.
“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.
The transaction documents included Comstock Fuels’ board observation rights for Marathon and reiterated the parties’ commitment to finalize an offtake agreement, joint development agreement, and warrant agreement on or before May 31, 2025.
Additional information on the transaction documents is available online in Comstock’s February 28, 2025, Current Report on Form 8-K.
About Comstock Fuels Corporation
Comstock Fuels Corporation (“Comstock Fuels”) delivers advanced lignocellulosic biomass refining solutions that set industry benchmarks for production of cellulosic ethanol, gasoline, renewable diesel, sustainable aviation fuel (“SAF”), and other renewable Bioleum™ fuels, with extremely low carbon intensity scores of 15 and market-leading yields of up to 140 gallons per dry metric ton of feedstock (on a gasoline gallon equivalent basis, or “GGE”), depending on feedstock, site conditions, and other process parameters. Comstock Fuels additionally holds the exclusive rights to intellectual properties developed by Hexas Biomass Inc. (“Hexas”) for production of purpose grown energy crops in liquid fuels applications with proven yields exceeding 25 to 30 dry metric tons per acre per year. The combination of Comstock Fuels’ high yield Bioleum refining platform and Hexas’ high yield energy crops allows for the production of enough feedstock to produce upwards of 100 barrels of fuel per acre per year, effectively transforming marginal agricultural lands with regenerative practices into perpetual “drop-in sedimentary oilfields” with the potential to dramatically boost regional energy security and rural economies.
Comstock Fuels plans to contribute to domestic energy dominance by directly building, owning, and operating a network of Bioleum Refineries in the U.S. to produce about 200 million barrels of renewable fuel per year by 2035, starting with its planned first 400,000 barrel per year commercial demonstration facility in Oklahoma. Comstock Fuels also licenses its advanced feedstock and refining solutions to third parties for additional production in the U.S. and global markets, including several recently announced and other pending projects. To learn more, please visit www.comstockfuels.com.
About Comstock Inc.
Comstock Inc. (NYSE: LODE) innovates and commercializes technologies that are deployable across entire industries to contribute to energy abundance by efficiently extracting and converting under-utilized natural resources, such as waste and other forms of woody biomass into renewable fuels, and end-of-life electronics into recovered electrification metals. Comstock’s innovations group is also developing and using artificial intelligence technologies for advanced materials development and mineral discovery for sustainable mining. To learn more, please visit www.comstock.inc.
Comstock Social Media Policy
Comstock Inc. has used, and intends to continue using, its investor relations link and main website at www.comstock.inc in addition to its X.com, LinkedIn and YouTube accounts, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Contacts
For investor inquiries:
RB Milestone Group LLC
Tel (203) 487-2759
ir@comstockinc.com
For media inquiries or questions:
Colby Korsun
Comstock Fuels Corporation
fuels@comstockinc.com
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FAQ
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