Montana Renewables' Ambitious Expansion Plan for Sustainable Aviation Fuel Production
Key Ideas
- Calumet Inc. secures a $1.44 billion loan guarantee from the U.S. Department of Energy to support the expansion of Montana Renewables' renewable fuels facility for sustainable aviation fuel production.
- The expansion includes adding a second renewable fuels reactor, enhancing SAF blending and logistics assets, increasing renewable hydrogen production, and creating job opportunities.
- Montana Renewables aims to produce 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel, contributing to reducing carbon footprint and regional economic growth.
- The investment demonstrates the U.S.'s commitment to renewable aviation and highlights innovation in sustainable alternatives for the transportation industry.
Calumet Inc., based in Indianapolis and formerly known as Calumet Specialty Products Partners, has received a conditional commitment for a significant loan guarantee of up to $1.44 billion from the U.S. Department of Energy. This funding is designated to support the expansion of a renewable fuels facility in Montana operated by Calumet's subsidiary, Montana Renewables, focusing on the production of sustainable aviation fuel (SAF). The expansion plans include increasing production capacity to 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel. Montana Renewables' CEO, Bruce Fleming, emphasized that the expansion aligns with national interests in sustainable alternatives, aiming to replace fossil fuels, reduce carbon footprint through renewable hydrogen and electricity production, and contribute to the regional economy.
The expansion project involves various enhancements such as adding a second renewable fuels reactor, installing new SAF blending and logistics assets, boosting renewable hydrogen production, and implementing water treatment and recycling facilities. It is anticipated that this initiative will generate around 450 construction jobs and create 40 permanent operational positions at the facility. The loan guarantee will be provided in two phases, with the initial disbursement of $778 million expected by the end of 2022. Calumet views this investment as an opportunity to establish Montana Renewables as a major SAF producer, showcasing the U.S.'s leadership in renewable aviation solutions and technological innovation. The ultimate goal is to make a significant impact in the transportation sector by providing sustainable alternatives and highlighting the country's commitment to environmental sustainability.
Topics
Production
Job Creation
Renewable Fuels
Economic Development
Expansion
Sustainable Alternatives
Loan Guarantee
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