Montana Renewables, a subsidiary of Calumet, Inc., announced on February 18 receiving the first drawdown of $782 million from its $1.44 billion loan guarantee from the U.S. Department of Energy (DOE) Loan Programs Office. This funding marks a significant step towards MRL’s goal of becoming one of the world’s largest producers of Sustainable Aviation Fuel (SAF).

The substantial loan will fuel the construction and expansion of MRL’s renewable fuels facility in Great Falls, Montana. The expansion project, dubbed MaxSAF, will dramatically increase the facility’s annual production capacity to approximately 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel. The project will be rolled out in phases, with approximately half of the 300 million gallon SAF capacity expected to be online by 2026, thanks to the addition of a second renewable fuels reactor. The complete project is anticipated to be finished in 2028.

The loan guarantee is structured in two tranches. The initial $782 million will cover eligible expenses already incurred by MRL. Concurrently with this first tranche, Calumet has invested an additional $150 million in equity. The remaining loan proceeds, up to $658 million, are expected to be disbursed through a delayed draw construction facility between 2025 and 2028, coinciding with the MaxSAF project’s construction.

These disbursements are contingent upon meeting specific commercial, technical, and legal conditions. MRL anticipates supplementing the DOE funds with retained earnings to maintain a debt-to-capitalization ratio of 55% during the MaxSAF construction. The loan carries a 15-year term with an annual interest rate tied to the U.S. Treasury rate plus 3/8%. Principal and interest payments will be deferred until MaxSAF is commissioned.

The project is expected to have a significant positive impact on the Montana economy. An economic impact study by the University of Montana Bureau of Business and Economic Research projects substantial benefits in terms of job creation, income generation, increased government revenues, and overall economic output. By 2028, the Great Falls site’s economic activity is projected to support a population of 4,400 Montanans.

MRL anticipates that the expansion will stimulate further regional development, particularly in the sourcing of renewable feedstocks from local farms and ranches. The company envisions creating a large-scale, end-to-end SAF industry in Montana and the Pacific Northwest, involving both public and private partners, similar to the Minnesota SAF Hub. The MRL expansion is projected to create 450 construction jobs and up to 40 permanent operations jobs.