Calumet, Inc. announced that its unrestricted subsidiary, Montana Renewables, LLC (MRL), has received a conditional commitment for a loan guarantee of up to $1.44 billion from the U.S. Department of Energy (DOE) Loan Programs Office. This substantial funding is designated for the construction and expansion of MRL's renewable fuels facility.
The planned expansion is projected to position Montana Renewables as one of the largest global producers of Sustainable Aviation Fuel (SAF), with an anticipated production capacity of approximately 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel. This significantly advances Calumet's strategic focus on high-growth renewable fuels.
The loan guarantee is structured in two tranches, with the first tranche of approximately $778 million expected to close in the fourth quarter of 2024. The balance will be disbursed through a delayed draw construction facility from 2025 through 2028, supporting the MaxSAF project. The loan features a 15-year tenor and an annual interest rate at the U.S. Treasury rate plus 3/8%, with principal and interest servicing deferred until MaxSAF is commissioned.
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