Calumet secures $1.4B loan for Montana Renewables project
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Indianapolis-based Calumet Inc. has closed on a $1.44 billion loan from the U.S. Department of Energy for a major project in Montana.
The company said the loan will support the construction and expansion of a renewable fuels facility owned by subsidiary Montana Renewables LLC.
Calumet said the new facility will increase its annual production of sustainable aviation fuel to about 300 million gallons, as well as about 330 million gallons of combined SAF and renewable diesel fuel.
The expansion is expected to create about 450 construction jobs and 40 permanent operations jobs at the facility.
Calumet announced in October that it had received a conditional commitment for the loan from the DOE’s Loan Programs Office, but certain technical, legal, environmental and financial conditions had to be satisfied before the funding was made available.
Calumet CEO Todd Borgmann said in a news release that the loan guarantee is a pivotal catalyst for the company.
“Following our conversion to a C-Corporation, we emphasized the importance of the DOE loan as the next major step in Calumet’s vision, and achieving that milestone is a tremendous accomplishment,” Borgmann said. “As Montana Renewables grows from a first mover and innovator in SAF to become one of the largest independent producers in the world, this business continues to competitively position itself for success, which is a critical piece of Calumet’s strategy to deliver ongoing shareholder value.”
Construction is slated to begin this year, and the project is expected to be fully completed by 2028.