Calumet, Inc. announced today that its subsidiary, Montana Renewables, LLC (MRL), has secured a conditional commitment from the U.S. Department of Energy (DOE) Loan Programs Office for a loan guarantee of up to $1.44 billion. The funding will support the construction and expansion of MRL’s renewable fuels facility in Great Falls, Montana, positioning the site as one of the world’s largest producers of Sustainable Aviation Fuel (SAF) by 2028.
The planned expansion aims to increase MRL’s production capacity to approximately 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel (RD). This investment, if finalized, will place Montana Renewables at the forefront of the global push for sustainable aviation fuels, offering a low-emission alternative to traditional fossil fuels in one of the transportation sector's most challenging areas to decarbonize.
Economic and regional benefits
Bruce Fleming, CEO of Montana Renewables, expressed gratitude to the DOE and local partners, emphasizing the project’s positive impact on the region’s economy. "Our commitment to expanding SAF supply benefits the local community, the State of Montana, and the Pacific Northwest economic region," Fleming said. An economic impact study by the University of Montana’s Bureau of Business and Economic Research projects that the Great Falls facility will support a population of approximately 4,400 by 2028, creating opportunities for working-age families.
The project is also expected to generate 450 construction jobs at its peak and up to 40 long-term operational jobs. Additionally, the expansion will foster infrastructure development for renewable feedstocks sourced from local farms and ranches, catalyzing further regional economic development in transportation, agriculture, and energy sectors.
Key features of the expansion
The expansion includes several key projects:
- A second renewable fuels reactor to bring half of the planned 300-million-gallon SAF capacity online by 2026
- Debottlenecking of existing renewable fuel production and pretreatment units
- Installation of SAF blending and logistics systems
- Increased renewable hydrogen production and cogeneration for renewable electricity and steam
- On-site water treatment and recycling capabilities
The facility’s development will contribute significantly to reducing fossil fuel reliance and greenhouse gas emissions. By producing renewable hydrogen and electricity on-site, Montana Renewables aims to lower its carbon footprint while advancing regional economic development.
Strategic national alignment
Calumet’s CEO Todd Borgmann emphasized that the project aligns with national goals to lead the world in the production of sustainable aviation fuel. “This investment allows us to leverage our first-mover advantage and transform Montana Renewables into a world-scale SAF producer," Borgmann said. He highlighted the DOE’s commitment to innovation, noting that the project will reinforce the U.S.’s position as a global leader in renewable aviation fuel.
Loan commitment and next steps
The conditional loan commitment is structured into two tranches. The first tranche of $778 million is expected to close by the fourth quarter of 2024, with the remaining funds disbursed as the project progresses, beginning in 2025 and completing by 2028. A $150 million equity investment will be made at the initial closing, and retained earnings from MRL will supplement DOE funds to maintain a 55/45 debt-to-equity ratio during construction.
While the loan guarantee marks a significant milestone, the completion of the deal is contingent upon satisfying technical, legal, environmental, and financial conditions before funding is finalized.
With this expansion, Montana Renewables aims to be a key player in the global SAF market, advancing the U.S.’s leadership in renewable fuel innovation and positioning Montana as a hub for sustainable energy.
