The US Department of Energy has given the green light to a loan guarantee that will significantly expand Calumet’s sustainable aviation fuel (SAF) refinery in Montana, a move expected to bolster economic growth and align with President Donald Trump’s energy policy goals.
The expansion project will more than double the refinery’s output, increasing production from 140 million gallons to 315 million gallons of SAF per year.
This enhanced capacity will account for approximately half of the entire continent’s SAF supply, marking a substantial leap in the production of biofuels.
Montana Renewables, the refinery responsible for SAF production, began operations in late 2022.
The refinery utilises feedstocks such as seed oils and tallow to create biofuel that produces significantly lower greenhouse gas (GHG) emissions compared to conventional jet fuel.
The project is anticipated to generate nearly 500 jobs, injecting vitality into the local economy and supporting President Trump’s broader energy objectives.
Republican US Senator Steve Daines of Montana was instrumental in securing the loan’s approval, stating that the refinery expansion directly supports Trump’s vision of “energy dominance.”
The loan guarantee, finalised on January 10, 2025, under the previous Biden administration, was confirmed despite concerns from green energy advocates about potential rollbacks under President Trump.
This confirmation comes after the Inflation Reduction Act, which significantly strengthened the Loan Programs Office’s loan authority by US$100 billion.
A Department of Energy spokeswoman stated that the department is “continuing to conduct a department-wide review of all funding, including grants and loans, to ensure all activities are consistent with the law and in accordance with President Trump’s executive orders and priorities”.
The decision arrives as President Trump unveils plans to maximise oil and gas production, reversing former President Biden’s initiatives to reduce fossil fuel dependence.
Trump’s strategy involves declaring a national energy emergency to expedite permit approvals, weakening environmental protections, and withdrawing the United States from the 2015 Paris climate agreement.
