Update: Montana Renewables receives first drawdown from $1.44-B DOE loan facility
- Initial loan proceeds of $782 MM funded today
- Balance of proceeds to be funded during planned expansion from 2025 through 2028
- DOE loan guarantee facilitates expansion of sustainable aviation fuel capacity to 300 MM gallons per year (gpy)
Calumet Inc. has announced that Montana Renewables LLC (MRL), an unrestricted subsidiary of Calumet, has received its first drawdown of approximately $782 MM from its $1.44-B guaranteed loan facility with the U.S. Department of Energy (DOE) Loan Programs Office (LPO). The loan funds the construction and expansion of the renewable fuels facility owned by Montana Renewables.
The expansion positions Montana Renewables as one of the largest SAF producers globally, enabling an increase in annual production capacity to approximately 300 MMgpy of SAF and 330 MMgpy of combined SAF and renewable diesel (RD). The planned expansion includes several key modular components, which will provide the ability to increase capacity and reduce costs. The most important component is a second renewable fuels reactor, which will allow approximately half of the 300-MMgpy SAF capability to be online by 2026.
"The DOE's mission includes technology and domestic energy security. MRL delivers both," said Bruce Fleming, CEO Montana Renewables. "Over the past three years, the DOE's Loan Program Office conducted a rigorous due diligence process supported by experts in technology, markets, law, underwriting and risk, and MRL qualified on the merits. The incoming administration took time to verify this and we appreciate the office's thoroughness. Today, we are pleased to continue leading Montana's largest biofuels investment and look forward to our continued collaboration with the LPO on the success of this project."
"Montana Renewables has been at the cutting edge of a rapidly developing biofuels market since its inception," said Todd Borgmann, CEO of Calumet. "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. I thank the entire DOE team for its continued commitment to supporting this practical and rapidly growing form of aviation fuel and for taking the time to ensure our nation's investments are prudent ones. The expansion of Montana Renewables into one of the world's largest SAF producers is an exceptional opportunity for regional agriculture, Montana business development, our employees and our shareholders."
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