Calumet was given a loan guarantee to expand a sustainable aviation fuel (SAF) refinery in Montana, according to a Tuesday announcement from President Donald Trump’s energy department. The Trump-approved sustainable aviation fuel refinery loan was finalized just a few days before Trump’s inauguration. Established in late 2022, the Montana Renewables refinery near Great Falls currently produces about 140 million gallons of biofuels per year. The loan will increase production to 315 million gallons annually, accounting for almost half of the SAF supply in North America. Compared to traditional jet fuel, SAF, which is made from fats from seed oils and tallow, produces lower carbon emissions.

Political and Financial Considerations Surrounding the Loan

Green energy advocates were worried about possible clawbacks under the Trump administration, even though the Biden administration had finalized the loan on January 10. These worries were brought on by Elon Musk’s Department of Government Efficiency‘s attempts to cut spending. The loan authority of the Loan Programs Office was expanded by $100 billion through Biden’s Inflation Reduction Act. Although the Montana loan payout was approved by the Energy Department, a representative said that all funding (including grants and loans) was being reviewed department-wide to make sure it was in line with Trump’s executive orders and policy objectives. Notably, the Trump approved sustainable aviation fuel refinery loan was among the key projects under review, given its significant impact on domestic energy production.

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Economic and Political Support for the Expansion

Montana Republican U.S. Senator Steve Daines highlighted his involvement in pushing for the loan’s approval. The expansion, he said, is in line with Trump’s objective of attaining “energy dominance.” The project is also anticipated to generate over 500 jobs in the area, which will further strengthen Montana’s economy.

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