#United States #Calumet #Sustainable Aviation Fuel #Montana Renewables #Great Falls

Montana Renewables Secures Major Funding for Sustainable Aviation Fuel Expansion

In a significant development for the renewable energy sector, Montana Renewables, a subsidiary of Calumet, Inc. (NASDAQ: CLMT), has successfully drawn $782 million from its $1.44 billion guaranteed loan facility provided by the U.S. Department of Energy (DOE). This funding marks the beginning of an ambitious expansion project aimed at bolstering production capacity for Sustainable Aviation Fuel (SAF).

Context of the Loan

The drawdown is part of a broader strategy to increase the facility's output to approximately 300 million gallons of SAF annually, alongside 330 million gallons of combined SAF and renewable diesel. The first tranche funding activates a transformational expansion at the Great Falls, Montana site, which is poised to emerge as one of the world's premier producers of renewable aviation fuel. The remaining funds from the DOE will be disbursed through a structured system as the project progresses, with completion anticipated between 2025 and 2028.

A Vision for Sustainable Energy

Bruce Fleming, CEO of Montana Renewables, emphasized the importance of this financing in aligning with DOE's mission to enhance technology and energy security domestically. He noted that the stringent due diligence conducted by the DOE showcases Montana Renewables' capability in leading this venture. Indeed, the support from the current administration underlines a commitment to transitioning towards sustainable energy sources.

This expansion not only responds to the growing demand for sustainable fuels but also enhances operational opportunities within Montana's agricultural sector. The plan will enable Montana Renewables to establish a collaborative network with local farms and ranches that will supply the necessary renewable feedstocks.

Job Creation and Economic Impact

An economic impact study commissioned by the University of Montana’s Bureau of Business and Economic Research (BBER) indicates that this expansion could generate significant local benefits. By 2028, the project is expected to support around 4,400 jobs in the Great Falls area, drawing primarily from working-aged families.

Additionally, the project will create 450 construction jobs and up to 40 operational roles at its facility. This underscores Montana Renewables’ commitment to not only expanding its production capabilities but also stimulating regional economic growth through job creation and local partnerships.

Commitment to the Future

The strategic expansion by Montana Renewables illustrates the company’s pioneering position in SAF production. With plans for a second renewable fuels reactor to be operational by 2026, Montana Renewables is well-positioned to meet the future demands for cleaner aviation fuel. This initiative aligns closely with Calumet's broader goal of producing a diverse range of specialty branded products and renewable fuels while contributing positively to regional communities.

As the renewable fuels market continues to grow, Montana Renewables' efforts signify a critical step towards a sustainable future. The project stands as a testament to the potential for innovation and collaboration within the renewable energy sector, paving the way for the increased adoption of sustainable practices in aviation and beyond.

Conclusion

In conclusion, Montana Renewables’ successful drawdown from the DOE loan facility serves as a beacon of progress in the shift towards sustainable fuels. The collaboration between the federal government and private entities like Calumet is crucial in fostering a greener future and securing energy independence. Through continued expansion and collaboration, Montana Renewables not only contributes to environmental goals but also positively impacts the economy and local job market in Great Falls and beyond.