Calumet Announces $1.44bn Us DOE Loan to Support Expansion Plans

Calumet reported that the US Department of Energy’s (DOE’s) Loan Programs Office (LPO) has provided a conditional commitment for a loan guarantee of up to $1.44bn to support the construction and expansion of a renewable fuels facility operated by its subsidiary, Montana Renewables (MRL).

The expansion aims to make Montana Renewables one of the largest producers of sustainable aviation fuel (SAF) worldwide, with an expected production capacity of approximately 300 million gallons of SAF and a total of 330 million gallons when combined with renewable diesel (RD).

Montana Renewables CEO Bruce Fleming said: “We would like to thank the DOE LPO team for its dedication and partnership during this process.

“Furthermore, our commitment to expanding SAF supply benefits the local community, the State of Montana, and the Pacific Northwest economic region. We are grateful for the steadfast support received from Great Falls, Cascade County, the State of Montana and Congressional officials and authorities.”

MRL plans to carry out a series of individual projects, including the addition of a second renewable fuels reactor, which will enable approximately half of the 300-million-gallon SAF capacity to be operational by 2026.

Other projects include reducing bottlenecks in the existing renewable fuels and feedstock pretreatment units, installing SAF blending and logistics assets, increasing renewable hydrogen production, adding cogeneration for renewable electricity and steam, implementing on-site water treatment and recycling capabilities, and making other site improvements.

Fleming added: “Our MaxSAF planned expansion is fully aligned with strategic national interest in low-emission sustainable alternatives.

“The expansion will directly replace fossil jet and diesel; reduce MRL’s carbon footprint by producing more renewable hydrogen and electricity; and contribute to regional economic development.”

MRL anticipates the expansion will promote additional regional development, particularly for renewable feedstocks sourced from local farms and ranches.

By fostering infrastructure growth in transportation, agriculture, and energy-related sectors, similar to the Minnesota SAF Hub, MRL aims to establish a large-scale, end-to-end SAF industry involving both public and private partners across Montana and the Pacific Northwest.

The expansion is expected to generate up to 450 construction jobs at its peak and approximately 40 permanent operations jobs.

The Conditional Commitment outlines a loan guarantee structured in two phases. The first phase, approximately $778m, is expected to close in the fourth quarter of this year, with the remaining funds to be disbursed through a delayed draw construction facility starting in 2025, continuing through the expected completion of the MaxSAF project in 2028.