Montana Renewables receives loan for SAF facility expansion

Montana Renewables LLC, a Great Falls, Montana-based renewable fuel company and an unrestricted subsidiary of Calumet Inc., Indianapolis, has announced the closing of a $1.44 billion loan to fund the construction and expansion of its renewable fuels facility. The guaranteed loan facility comes from the U.S. Department of Energy (DOE) Loan Programs Office.

The expansion will enable an increase in annual production capacity to about 300 million gallons of sustainable aviation fuel (SAF) and 330 million gallons of combined SAF and renewable diesel, positioning Montana Renewables as one of the largest SAF producers globally. The company says the planned expansion includes several key components: a second renewable fuels reactor allowing about half of the 300-million-gallon SAF capability to be online by 2026, debottlenecking of existing units, installation of SAF blending and logistics assets, increased renewable hydrogen production, cogeneration for renewable electricity and steam, and on-site water treatment and recycling capabilities.

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“This is essentially the largest agricultural investment in Montana history and will double our purchases of seed oils and tallow from approximately 1.5 billion pounds per year today to 3 billion pounds per year post-expansion. This is possible through the strong support and partnership of DOE and follows over two years of detailed due diligence,” says Bruce Fleming, CEO of Montana Renewables. “Our MaxSAF expansion drives regional economic development by creating jobs, supporting the broader agricultural industry and positioning the state of Montana as a global leader in renewable fuels in a practical and highly economic way with technology that we have developed and derisked here in the United States.”

The Montana Renewables expansion is expected to create 450 construction jobs and up to 40 operations jobs.

“This investment is a pivotal catalyst for Calumet,” says Todd Borgmann, CEO of Calumet. “Following our conversion to a C-Corporation, we emphasized the importance of the DOE loan as the next major step in Calumet’s vision, and achieving that milestone is a tremendous accomplishment. As Montana Renewables grows from a first mover and innovator in SAF to become one of the largest independent producers in the world, this business continues to competitively position itself for success, which is a critical piece of Calumet’s strategy to deliver ongoing shareholder value.”