Montana Renewables Secures $1.44 Billion Loan to Boost Renewable Fuel Production

Montana Renewables Expands Sustainability Efforts with Major Loan

In a significant move towards sustainability, Calumet, Inc. announced the closing of a remarkable $1.44 billion loan facility, guaranteed by the U.S. Department of Energy (DOE). This funding will facilitate the construction and expansion of the renewable fuels facility operated by Montana Renewables, a subsidiary of Calumet. This substantial injection of capital is aimed at scaling up their production capacity, enhancing their status as a competitive player in the renewable fuels industry.

The expansion will position Montana Renewables as one of the world's largest producers of Sustainable Aviation Fuel (SAF), targeting an annual production capacity of approximately 300 million gallons of SAF alone. This ambitious project not only includes the addition of a second renewable fuels reactor but also enhances existing facilities through debottlenecking, installation of SAF blending technologies, and the development of renewable hydrogen production capabilities. This holistic approach reinforces Montana's commitment to innovation and sustainability in a rapidly evolving energy landscape.

Bruce Fleming, CEO of Montana Renewables, emphasized the historic significance of this expansion, highlighting it as the largest agricultural investment in Montana's history. "This expansion will double our purchases of seed oils and tallow, scaling from 1.5 billion pounds per year to 3 billion pounds post-expansion. Our partnership with the DOE has propelled us forward after extensive due diligence, positioning Montana as a global leader in renewable fuels, with technology that has been effectively developed and tested within the U.S.," he stated.

The expansion of Montana Renewables is poised to catalyze regional economic development, creating approximately 450 construction jobs and up to 40 operational positions. This initiative aims to support local farmers and ranchers by enhancing the availability and accessibility of renewable feedstocks that are essential for fuel production. By fostering partnerships with local agricultural entities, Montana Renewables is committed to building a sustainable supply chain that benefits the community and contributes to the local economy.

According to Todd Borgmann, CEO of Calumet, this investment serves as a critical milestone in their vision for growth and sustainability. "With this DOE loan, we are reaffirming our commitment to renewable fuels while enhancing shareholder value through strategic expansion. Our goal is to transition from being a first mover to one of the largest independent SAF producers in the globe. The MaxSAF expansion will allow us to remain competitive in a booming industry, ensuring our place in the market while delivering on our economic promises."

The loan structure allows for an initial funding increase of about $782 million for MRL to cover previously incurred expenses. Following this, Calumet is set to invest an additional $150 million from its current funds, making sure that the financing aligns with the strategic objectives laid out for the project\. This construction phase is projected to extend from 2025 to 2028, leading to full operational status for the MaxSAF project.

In addition to job creation and economic growth, Montana Renewables anticipates significant improvements in regional transportation infrastructure, agricultural practices, and energy-related businesses. The company's aspirations align closely with the goals of similar initiatives, such as the Minnesota SAF Hub, which focuses on creating a comprehensive SAF ecosystem involving public and private sectors in Montana and the Pacific Northwest.

Overall, the Montana Renewables expansion represents a significant stride towards addressing the rising demand for sustainable fuels, supporting economic development, and contributing positively to the community. As the operations unfold in Great Falls, Montana, it will not only chart a promising future for the company but will also decisively mark Montana's emergence as a hub for renewable energy innovation.