Comstock Fuels Secures Strategic Investment from Marathon Petroleum

Comstock Fuels Corporation (Comstock Fuels), a subsidiary of Comstock Inc. (NYSE: LODE), has announced a strategic investment and collaboration with Marathon Petroleum Corporation (NYSE: MPC) to advance its lignocellulosic biomass refining solutions to commercial maturity. The $14 million investment, comprising $1 million in cash and $13 million in payment-in-kind assets, represents a significant milestone for Comstock Fuels and its parent company.

The investment includes the acquisition of Marathon's renewable fuel demonstration facility in Madison, Wisconsin, which will be used to increase Comstock Fuels' current pilot production capabilities in Wausau, Wisconsin. This strategic move allows Comstock Fuels to accelerate its commercial timeline and reduce capital expenditure requirements by leveraging existing infrastructure and intellectual property.

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 compatible with existing petroleum-based infrastructure. According to the U.S. Department of Energy, America can produce upwards of one billion tons per year of biomass for conversion into fuel, enough to produce more than 3 billion barrels of fuel per year using Comstock Fuels' refining solutions.

The transaction documents include Comstock Fuels' board observation rights for Marathon, with plans to finalize an offtake agreement, joint development agreement, and warrant agreement on or before May 31, 2025. These agreements will provide Comstock Fuels with secure future revenue streams, commercial validation, market access, and potential for expanded collaboration with Marathon Petroleum.



The strategic investment from Marathon Petroleum into Comstock Fuels represents a significant capital infusion for Comstock Inc., equivalent to approximately 22% of its current $64.2 million market capitalization. The structure of this investment, heavily weighted toward in-kind assets, allows Comstock to accelerate development while conserving cash resources. The acquisition of Marathon's Madison demonstration facility provides an immediate scaling opportunity beyond Comstock's existing Wausau pilot operations, which should accelerate the technology's commercial timeline while reducing capital expenditure requirements.

In conclusion, the strategic investment and collaboration between Comstock Fuels and Marathon Petroleum represent a significant step forward for Comstock Inc. and its innovative lignocellulosic biomass refining solutions. This partnership addresses two critical barriers to commercialization: production scale capability and market access through an established distribution partner. With the support of Marathon Petroleum, Comstock Fuels is well-positioned to bring its unique renewable fuels technology to market more quickly and efficiently.