Montana Renewables expands MaxSAF to 200 MG annually
In Montana, Calumet, Inc. announced a new flight plan for its MaxSAF® expansion at Montana Renewables, LLC, an unrestricted subsidiary of Calumet. By repurposing proven, installed refining equipment from the adjacent Calumet Montana Refining (“CMR”) facility, Montana Renewables expects to reach approximately 200 million gallons of annual Sustainable Aviation Fuel (“SAF”) production and 17,000 barrels per day of total product sales by year-end 2028. The total remaining project capital spend for this expansion is $137 million, compared to the $1.2 billion megaproject contemplated in the original loan issued by the U.S. Department of Energy (“DOE”) through its Office of Energy Dominance Financing (“EDF”).
Reflecting the dramatically lower capital requirement, Montana Renewables and EDF have amended the Loan Guarantee Agreement (“LGA”) originally executed in January 2025. Phase 2 DOE funding is reduced from up to $658 million to a single, final draw of $34 million, with the balance of the expansion self-funded from MRL earnings. The original agreement required the project’s full equity to be committed before Phase 2 construction. The amended structure requires no third-party equity, thereby eliminating dilution and preserving a simple capital structure for future strategic opportunities while accelerating the benefits of increased throughput, SAF, improved yields, and reduced unit costs.
Category: Fuels
