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Montana Renewables Announces Closing of $1.44 Billion DOE Loan Facility for Renewable Fuels and Biomass Energy Facility
CLMTCalumet Specialty Products Partners(CLMT) Prnewswire·2025-01-10 21:07

Loan Facility and Expansion - Calumet Inc closed a 1.44billionguaranteedloanfacilitywiththeUSDepartmentofEnergytofundtheconstructionandexpansionofMontanaRenewables′renewablefuelsfacility[1]−TheexpansionwillpositionMontanaRenewablesasoneofthelargestSustainableAviationFuel(SAF)producersglobally,increasingannualproductioncapacitytoapproximately300milliongallonsofSAFand330milliongallonsofcombinedSAFandrenewablediesel[2]−Theexpansionincludesasecondrenewablefuelsreactor,debottleneckingofexistingunits,installationofSAFblendingandlogisticsassets,increasedrenewablehydrogenproduction,cogenerationforrenewableelectricityandsteam,andon−sitewatertreatmentandrecyclingcapabilities[2]RegionalandEconomicImpact−TheexpansionwilldoubleMontanaRenewables′purchasesofseedoilsandtallowfrom1.5billionpoundsperyearto3billionpoundsperyearpost−expansion[3]−Theprojectisexpectedtocreate450constructionjobsandupto40operationsjobs[8]−By2028,theeconomicfootprintoftheGreatFallssiteisexpectedtosupportapopulationof4,400Montanans,primarilyworking−agedfamiliesandtheirchildren[5]−Theexpansionisexpectedtocatalyzeadditionalregionaldevelopment,particularlyforrenewablefeedstockssourcedfromfarmsandranches,andcreatealarge−scale,end−to−endSAFindustryinMontanaandthePacificNorthwest[7]LoanStructureandFunding−Theloanguaranteeisstructuredtoreleaseafirsttrancheofapproximately1.44 billion guaranteed loan facility with the US Department of Energy to fund the construction and expansion of Montana Renewables' renewable fuels facility [1] - The expansion will position Montana Renewables as one of the largest Sustainable Aviation Fuel (SAF) producers globally, increasing annual production capacity to approximately 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel [2] - The expansion includes a second renewable fuels reactor, debottlenecking of existing units, installation of SAF blending and logistics assets, increased renewable hydrogen production, cogeneration for renewable electricity and steam, and on-site water treatment and recycling capabilities [2] Regional and Economic Impact - The expansion will double Montana Renewables' purchases of seed oils and tallow from 1.5 billion pounds per year to 3 billion pounds per year post-expansion [3] - The project is expected to create 450 construction jobs and up to 40 operations jobs [8] - By 2028, the economic footprint of the Great Falls site is expected to support a population of 4,400 Montanans, primarily working-aged families and their children [5] - The expansion is expected to catalyze additional regional development, particularly for renewable feedstocks sourced from farms and ranches, and create a large-scale, end-to-end SAF industry in Montana and the Pacific Northwest [7] Loan Structure and Funding - The loan guarantee is structured to release a first tranche of approximately 782 million to fund eligible expenses previously incurred by Montana Renewables [4] - Calumet expects to make an additional $150 million equity investment with funds it currently holds [4] - The balance of the guaranteed loan proceeds is held in a delayed draw construction facility, with the second tranche expected to be disbursed during construction beginning in 2025 through the anticipated completion of the MaxSAF project in 2028 [4] - The loan has a 15-year tenor and an annual interest rate at the US Treasury rate plus 3/8%, with servicing of principal and interest deferred until MaxSAF is commissioned [4] Company Overview - Montana Renewables is a leading renewable fuel company located in Great Falls, Montana, producing Sustainable Aviation Fuel, Renewable Diesel, Renewable Hydrogen, and Renewable Naphtha [9] - As the largest SAF producer in North America (2024), Montana Renewables is dedicated to meeting the increasing demand for sustainable fuels and supporting a greener future [9] - Calumet Inc manufactures, formulates, and markets a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets [10]