Called MaxSAF, the expansion project will lift annual production capacity to about 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel. (Source: Shutterstock)
Calumet subsidiary Montana Renewables closed a $1.44 billion guaranteed loan facility from the U.S. Department of Energy’s Loan Programs Office (LPO) to help finance expansion of the company’s renewable fuels facility in Great Falls, Montana.
Montana Renewables is expected to produce about half of North America’s sustainable aviation fuel (SAF) and about 12% of the SAF produced globally when the expansion project reaches full capacity, the LPO said Jan. 10.
“As the aviation sector aims to meet its decarbonization goals, SAF will become increasingly vital,” the LPO said. “SAF is one of the only viable near-term options to decarbonize the airline industry, which is responsible for 11% of U.S. transportation emissions or 3.3% of total U.S. emissions.”
Called MaxSAF, the expansion project will lift annual production capacity to about 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel, Calumet said.
That’s up from about 140 million gallons per year of biofuels, mostly renewable diesel, produced today.
“This is essentially the largest agricultural investment in Montana history and will double our purchases of seed oils and tallow from approximately 1.5 billion pounds per year today to 3 billion pounds per year post expansion,” said Montana Renewables CEO Bruce Fleming. “This is possible through the strong support and partnership of DOE and follows over two years of detailed due diligence.”
The initial tranche of about $782 million is expected in January with the balance of proceeds funded through the planned construction period, according to a news release. The project is scheduled to begin coming online in 2026.
Recommended Reading
1Q25 Trend: US Producers Pivot on Market Uncertainty, Cut Capex and Rigs
2025-05-14 - Macro volatility and price uncertainty topped most discussions in first-quarter earnings calls as companies including Diamondback Energy, Occidental Petroleum and Coterra Energy reduce spending and rig counts.
EQT Buys Private Marcellus E&P Olympus Energy for $1.8B
2025-04-23 - EQT’s acquisition from Blackstone-backed Olympus adds 90,000 net Marcellus and Utica acres and 500 MMcf/d of production.
Exxon-Led Consortium's 2024 Profit in Guyana Rose 64% to $10.4B
2025-06-03 - The profit of a consortium by oil producers Exxon Mobil, Hess and CNOOC in Guyana increased 64% last year to $10.4 billion, Exxon said on June 3, amid facility updates that allowed a sustained expansion of output.
Pension Funds Eye Oil ETFs Amid Volatility, Middle East Tensions
2025-07-02 - Investors in energy ETFs should be wary of short-term volatility in commodity-linked ETFs amid geopolitical tensions in the Middle East.
Shell CEO Prefers Share Buybacks Over a Bid for BP, FT reports
2025-05-04 - Shell has been persistently linked to a bid for its smaller rival BP as the latter lost more than 30% of its value in the past 12 months, the Financial Times reported.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.