Great Falls, Montana – Montana Renewables, LLC, a subsidiary of Calumet, Inc., has received a conditional commitment for a $1.44 billion loan guarantee from the U.S. Department of Energy’s (DOE) Loan Programs Office. The funding will support the construction and expansion of the company’s renewable fuels facility, which will position Montana Renewables as one of the largest producers of Sustainable Aviation Fuel (SAF) globally, with an annual production capacity of 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel.
Expanding SAF Production
The expansion of Montana Renewables will have a significant impact on the aviation industry’s efforts to decarbonize. SAF, a low-carbon alternative to traditional jet fuel, is key to reducing the aviation sector’s carbon footprint. The facility’s production capacity will make a substantial contribution to achieving U.S. SAF targets, which are outlined in the DOE’s SAF Grand Challenge. By 2028, the facility aims to reach full operational capacity.
Bruce Fleming, CEO of Montana Renewables, emphasized the importance of this expansion: “Our commitment to expanding SAF supply not only benefits the local community and the State of Montana but also strengthens the Pacific Northwest’s position in the renewable fuels market. We are grateful for the steadfast support we’ve received from Great Falls, Cascade County, the State of Montana, and our Congressional officials.”
“This investment allows us to leverage our first-mover advantage and transform Montana Renewables into a world-scale SAF producer.” — Todd Borgmann, CEO of Calumet
Boosting Regional Development
In addition to its environmental benefits, the expansion will have a positive economic impact on the region. A study by the University of Montana Bureau of Business and Economic Research (BBER) highlighted the potential for significant job creation and economic growth. By 2028, the Great Falls site is expected to support a population of 4,400, driven primarily by working-aged families. The expansion is also expected to create 450 construction jobs at its peak and up to 40 permanent operations jobs.
Montana Renewables’ strategic location in the Pacific Northwest provides access to sustainable, renewable feedstocks sourced from local farms and ranches. The facility will process agricultural byproducts such as tallow, used cooking oil, and camelina oil into renewable transportation fuels with lower emissions compared to fossil fuels.
Conditional Commitment and Funding Structure
The $1.44 billion conditional commitment will be structured in two tranches. The first tranche, worth $778 million, is expected to close in the fourth quarter of 2024. The balance will be disbursed throughout the MaxSAF™ project, which is scheduled for completion by 2028. The loan will have a 15-year tenor, with servicing of principal and interest deferred until the facility is commissioned.
In addition to the DOE funding, Montana Renewables will make a $150 million equity investment at the initial closing. Retained earnings from the facility will supplement the DOE funds, maintaining a 55/45 debt-to-equity ratio during the construction phase.
Todd Borgmann, CEO of Calumet, expressed excitement about the project: “This investment allows us to build on our first-mover advantage and leverage our renewable hydrogen and pretreatment technologies to transform Montana Renewables into a world-scale SAF producer. This expansion demonstrates U.S. leadership in the global transition to renewable aviation fuels, a sector that is critical to achieving long-term decarbonization goals.”
About Montana Renewables
Montana Renewables is a leading renewable fuel producer based in Great Falls, Montana. The company specializes in producing SAF, renewable diesel, renewable hydrogen, and renewable naphtha. As North America’s largest SAF producer, Montana Renewables is dedicated to supporting the aviation industry’s transition to low-emission fuels while contributing to the local economy.
