Comstock Secures $14M Investment from Marathon for Biofuel Expansion

Comstock Inc. (NYSE: LODE) has received a significant boost to its biofuel operations with a $14 million investment from Marathon Petroleum Corporation (NYSE: MPC). The strategic collaboration will enable Comstock Fuels, a subsidiary of Comstock Inc., to advance its lignocellulosic biomass refining solutions to commercial maturity. The investment includes $1 million in cash and $13 million in payment-in-kind assets, comprising equipment, intellectual properties, and other materials from Marathon's renewable fuel demonstration facility in Madison, Wisconsin.



The Madison Facility will be used to increase Comstock Fuels' current pilot production capabilities in Wausau, Wisconsin, accelerating the technology's commercial timeline and reducing capital expenditure requirements. Comstock's advanced lignocellulosic biomass refining solutions are designed to convert massive supplies of historically inaccessible biomass feedstock into "drop-in" hydrocarbon fuels compatible with existing petroleum-based infrastructure. This alignment with oil producers like Marathon offers a pathway to meet renewable fuel requirements while leveraging existing assets.

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 with secure future revenue streams, commercial validation, market access, and potential for expanded collaboration with Marathon Petroleum. The $14 million 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 strategic implications of this investment structure are substantial for Comstock's future growth and cash flow management. By acquiring Marathon's Madison demonstration facility, Comstock gains immediate access to existing infrastructure and intellectual property, reducing capital expenditure requirements and accelerating the technology's commercial timeline. Additionally, the planned offtake agreement, joint development agreement, and warrant agreement provide Comstock with secure future revenue streams, commercial validation, market access, and potential for expanded collaboration with Marathon Petroleum.

In conclusion, Comstock's $14 million investment from Marathon Petroleum Corporation has a substantial impact on its market capitalization and valuation, and the investment structure allows Comstock to accelerate its growth and manage its cash flow more effectively. The strategic implications of this investment include access to existing infrastructure, intellectual property, and potential future revenue streams, which will help Comstock bring its renewable fuels technology to market more quickly and efficiently.