Montana Renewables’ $1.44 billion DOE loan guarantee subject to ‘tactical delay’ as it undergoes White House review

January 30, 2025

BY Erin Voegele

Calumet Inc. on Jan. 28 announced disbursement of the first tranche of its $1.44 billion U.S. Department of Energy loan guarantee to support the expansion of sustainable aviation fuel (SAF) production at its Montana Renewables facility will be delayed to allow review by the Trump administration. 

Montana Renewables has been working to expand SAF production through what it calls its MaxSAF initiative for several years. The initiative aims to boost SAF production at the company’s biorefinery from the current capacity of 50 MMgy to 150 MMgy by 2026 and 300 MMgy during the following two years. The company completed the extensive DOE loan guarantee application process last year, with the DOE issuing a conditional commitment for the loan guarantee in October 2024. Calumet closed on the $1.44 billion loan guarantee on Jan. 10. The first tranche of approximately $782 million was scheduled to be disbursed on Jan. 28. 

Calumet on Jan. 28 issued a statement that the first tranche of funding “will undergo a tactical delay to confirm alignment with White House priorities.” The company said it has been informed “the delay should be days or weeks.” 

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"We are well aligned with White House priorities to support domestic agriculture, energy security, technical innovation and energy independence, all of which play a role in the tremendous bipartisan support this loan has received since its inception," said Todd Borgmann, CEO of Calumet.  "The recently issued Executive Order specifically highlights the importance of biofuels to our nation's domestic energy policy and energy independence, and we look forward to a quick review confirming that we are aligned with the administration's goals."

 

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