INDIANAPOLIS / WASHINGTON – Montana Renewables, LLC (MRL), a subsidiary of Calumet, Inc. (NASDAQ: CLMT), has received the first $782 million disbursement from a $1.44 billion U.S. Department of Energy (DOE) loan guarantee under the Trump administration. The loan will fund the expansion of MRL’s renewable fuels facility in Great Falls, Montana, increasing its Sustainable Aviation Fuel (SAF) production capacity to 300 million gallons per year by 2028, making it one of the largest SAF producers globally.
The loan was initially approved in the final days of the Biden administration on January 10 but underwent additional review after President Donald Trump took office. Despite concerns that DOE loans approved under Biden could be reconsidered, the Trump administration allowed the funding to proceed following advocacy from U.S. Senator Steve Daines (R-MT), who emphasized the project’s role in achieving Trump’s “energy dominance” strategy.
Project Scope and Economic Impact
MRL’s expansion will add a second renewable fuels reactor, expected to bring half of the 300-million-gallon SAF capacity online by 2026. The project is forecast to create 450 construction jobs and up to 40 permanent operations jobs. An economic impact study from the University of Montana estimates the facility will support 4,400 Montanans by 2028, strengthening local agriculture and renewable feedstock supply chains.
“DOE’s mission includes technology and domestic energy security. MRL delivers both,” said Bruce Fleming, CEO of Montana Renewables. “Over the past three years, DOE’s Loan Program Office conducted a rigorous due diligence process, and MRL qualified on the merits.”
Todd Borgmann, CEO of Calumet, added, “MRL proved itself as an early mover in large-scale SAF production, and now we are proud to be the first project to receive the support of our new Administration. This expansion is an exceptional opportunity for regional agriculture, Montana business development, our employees, and our shareholders.”
Loan Structure and Future Disbursements
The DOE loan is structured in two tranches, with the initial $782 million covering prior eligible expenses. Calumet has also contributed an additional $150 million in equity. The remaining $658 million will be disbursed incrementally through 2028 as construction milestones are met. The loan has a 15-year term with an interest rate set at the U.S. Treasury rate plus 0.375%, with principal and interest deferred until MRL’s MaxSAF™ project is commissioned.
“MRL proved itself as an early mover in large-scale SAF production, and now we are proud to be the first project to receive the support of our new Administration.” – Todd Borgmann, CEO of Calumet
Policy and Market Implications
The Trump administration’s approval of the loan highlights its approach to energy investments—balancing fiscal conservatism with support for strategic infrastructure projects that align with its energy policy goals. While the DOE is reviewing all funding commitments, Montana Renewables’ expansion represents a significant step in boosting domestic SAF production and reducing reliance on traditional jet fuel.
With MRL set to produce nearly half of North America’s SAF supply, this project positions the U.S. as a leader in sustainable aviation fuels under the Trump administration.
