Montana Renewables Receives $1.44 Billion Conditional Commitment from DOE for Renewable Fuels and Biomass Energy Facility
Calumet (NASDAQ: CLMT) announced that its subsidiary, Montana Renewables (MRL), has received a $1.44 billion conditional commitment from the U.S. Department of Energy for a loan guarantee to expand its renewable fuels facility. The expansion aims to increase MRL's Sustainable Aviation Fuel (SAF) production capacity to 300 million gallons per year, making it one of the largest SAF producers globally.
The loan is structured in two tranches, with the first $778 million expected to close in Q4 2024. The expansion project, dubbed MaxSAF™, is set to be completed by 2028. It will include various enhancements such as a second renewable fuels reactor, increased renewable hydrogen production, and cogeneration capabilities. The project is expected to create 450 construction jobs and up to 40 operations jobs at its peak.
An economic impact study predicts substantial benefits for Montana, including supporting a population of 4,400 Montanans by 2028. The expansion aligns with national interests in low-emission sustainable alternatives and is expected to catalyze additional regional development in renewable feedstocks and related industries.
Calumet (NASDAQ: CLMT) ha annunciato che la sua sussidiaria, Montana Renewables (MRL), ha ricevuto un impegno condizionale di 1,44 miliardi di dollari dal Dipartimento dell'Energia degli Stati Uniti per una garanzia di prestito per espandere la sua struttura di produzione di carburanti rinnovabili. L'espansione mira ad aumentare la capacità di produzione di carburante per aviazione sostenibile (SAF) di MRL a 300 milioni di galloni all'anno, rendendola uno dei maggiori produttori di SAF a livello globale.
Il prestito è strutturato in due tranche, con i primi 778 milioni di dollari che si prevede vengano finalizzati nel quarto trimestre del 2024. Il progetto di espansione, denominato MaxSAF™, dovrebbe essere completato entro il 2028. Includerà vari miglioramenti, come un secondo reattore per carburanti rinnovabili, un aumento della produzione di idrogeno rinnovabile e capacità di cogenerazione. Si prevede che il progetto creerà 450 posti di lavoro per la costruzione e fino a 40 posti di lavoro operativi al suo apice.
Uno studio sull'impatto economico prevede sostanziali benefici per il Montana, inclusa la sostenibilità per una popolazione di 4.400 montanesi entro il 2028. L'espansione è in linea con gli interessi nazionali per alternative sostenibili a basse emissioni e si prevede che catalizzerà ulteriore sviluppo regionale per le materie prime rinnovabili e industrie correlate.
Calumet (NASDAQ: CLMT) anunció que su subsidiaria, Montana Renewables (MRL), ha recibido un compromiso condicional de 1.44 mil millones de dólares del Departamento de Energía de los Estados Unidos para una garantía de préstamo con el fin de expandir su instalación de combustibles renovables. La expansión tiene como objetivo aumentar la capacidad de producción de Combustible de Aviación Sostenible (SAF) de MRL a 300 millones de galones por año, convirtiéndola en uno de los mayores productores de SAF a nivel mundial.
El préstamo está estructurado en dos tramos, con los primeros 778 millones de dólares que se espera que cierren en el cuarto trimestre de 2024. Se espera que el proyecto de expansión, denominado MaxSAF™, se complete para 2028. Incluirá diversas mejoras como un segundo reactor de combustibles renovables, un aumento en la producción de hidrógeno renovable y capacidades de cogeneración. Se prevé que el proyecto genere 450 empleos de construcción y hasta 40 empleos operativos en su punto máximo.
Un estudio de impacto económico predice beneficios sustanciales para Montana, incluyendo el apoyo a una población de 4,400 montañeses para 2028. La expansión se alinea con los intereses nacionales en alternativas sostenibles de bajas emisiones y se espera que catalice un desarrollo adicional regional en materias primas renovables e industrias relacionadas.
칼루메트(CALUMET)(NASDAQ: CLMT)는 자회사인 몬태나 리뉴어블스(MRL)가 미국 에너지부로부터 14억 4천만 달러의 조건부 약속을 받았다고 발표했습니다. 이 대출 보증은 재생 가능 연료 시설 확장을 위한 것입니다. 확장의 목표는 MRL의 지속 가능한 항공 연료(SAF) 생산 능력을 연간 3억 갤런으로 늘리는 것이며, 이는 전 세계에서 가장 큰 SAF 생산업체 중 하나로 만들 것입니다.
대출은 두 개의 트랜치로 구성되며, 첫 번째 7억 7천 8백만 달러는 2024년 4분기에 마무리될 것으로 예상됩니다. '맥SAF™'라는 이름의 확장 프로젝트는 2028년까지 완료될 예정입니다. 이 프로젝트는 두 번째 재생 가능한 연료 반응기, 증가된 재생 가능한 수소 생산 및 공동 발전 능력과 같은 다양한 개선 사항을 포함할 것입니다. 이 프로젝트는 최고의 경우 450개의 건설 일자리와 최대 40개의 운영 일자리를 창출할 것으로 예상됩니다.
경제적 영향 연구는 2028년까지 몬태나에서 4,400명의 주민을 지원하는 등 상당한 혜택을 예측합니다. 이 확장은 저배출 지속 가능한 대안의 국가적 관심에 부합하며, 재생 가능한 원료 및 관련 산업의 추가 지역 발전을 촉진할 것으로 기대됩니다.
Calumet (NASDAQ: CLMT) a annoncé que sa filiale, Montana Renewables (MRL), a reçu un engagement conditionnel de 1,44 milliard de dollars du Département de l'Énergie des États-Unis pour garantir un prêt visant à étendre son installation de carburants renouvelables. L'extension vise à augmenter la capacité de production de Carburant d'Aviation Durable (SAF) de MRL à 300 millions de gallons par an, faisant d'elle l'un des plus grands producteurs de SAF au monde.
Le prêt est structuré en deux tranches, dont les premiers 778 millions de dollars devraient être finalisés au quatrième trimestre 2024. Le projet d'extension, surnommé MaxSAF™, devrait être achevé d'ici 2028. Il comprendra diverses améliorations telles qu'un deuxième réacteur pour carburants renouvelables, une augmentation de la production d'hydrogène renouvelable et des capacités de cogénération. Le projet devrait créer 450 emplois dans la construction et jusqu'à 40 emplois opérationnels à son apogée.
Une étude d'impact économique prévoit des avantages considérables pour le Montana, y compris le soutien d'une population de 4 400 Montanains d'ici 2028. L'expansion est en adéquation avec les intérêts nationaux pour des alternatives durables à faibles émissions et devrait catalyser un développement régional supplémentaire dans les matières premières renouvelables et les industries connexes.
Calumet (NASDAQ: CLMT) hat angekündigt, dass seine Tochtergesellschaft Montana Renewables (MRL) eine bedingte Zusage in Höhe von 1,44 Milliarden US-Dollar vom US-Energieministerium für eine Kreditgarantie zur Erweiterung ihrer Anlage für erneuerbare Brennstoffe erhalten hat. Die Erweiterung zielt darauf ab, die Produktion von nachhaltigem Flugkraftstoff (SAF) von MRL auf 300 Millionen Gallonen pro Jahr zu steigern, wodurch sie zu einem der größten SAF-Produzenten weltweit wird.
Der Kredit ist in zwei Tranchen strukturiert, wobei die ersten 778 Millionen US-Dollar voraussichtlich im vierten Quartal 2024 abgeschlossen werden. Das Erweiterungsprojekt namens MaxSAF™ soll bis 2028 abgeschlossen sein. Es wird verschiedene Verbesserungen umfassen, darunter einen zweiten Reaktor für erneuerbare Brennstoffe, eine erhöhte Produktion von erneuerbarem Wasserstoff und Kraft-Wärme-Kopplung. Es wird erwartet, dass das Projekt 450 Bauarbeiten und bis zu 40 Betriebsjobs in der Hochphase schafft.
Eine wirtschaftliche Auswirkungen Studie prognostiziert erheblichen Nutzen für Montana, einschließlich der Unterstützung einer Bevölkerung von 4.400 Montana-Bewohnern bis 2028. Die Erweiterung entspricht den nationalen Interessen an nachhaltigen, emissionsarmen Alternativen und wird voraussichtlich zusätzliche regionale Entwicklungen in erneuerbaren Rohstoffen und verwandten Industrien anstoßen.
- Received $1.44 billion conditional commitment from DOE for loan guarantee
- Expansion to increase SAF production capacity to 300 million gallons per year
- Project expected to create 450 construction jobs and up to 40 operations jobs
- Economic impact study predicts substantial benefits for Montana
- Aligns with national interests in low-emission sustainable alternatives
- Expected to catalyze additional regional development in renewable feedstocks
- Loan guarantee is still conditional and subject to various conditions
- Project completion not expected until 2028
- Requires $150 million equity investment at initial closing
Insights
This $1.44 billion conditional loan commitment from the DOE is a major catalyst for Calumet and its Montana Renewables subsidiary. The funding will significantly expand SAF production capacity to 300 million gallons annually, positioning MRL as a global leader in this fast-growing market. Key financial implications include:
- Favorable loan terms with a 15-year tenor and interest rate of ~
4.375% , below typical corporate borrowing costs - Deferred principal and interest payments until project completion, preserving near-term cash flow
$150 million equity investment required, with retained earnings funding the remainder of the 45% equity portion- Potential for substantial revenue growth and margin expansion as SAF demand increases
While execution risks remain, this backing from the DOE significantly de-risks the expansion project financially. The long-term economics look promising given growing regulatory support for SAF adoption.
This expansion marks a pivotal moment for the SAF industry in North America. Key points to consider:
- MRL's 330 million gallon combined SAF/renewable diesel capacity will be transformative for the sector
- The project leverages innovative technologies like renewable hydrogen production and cogeneration
- It aligns with national interests in decarbonizing aviation, one of the hardest sectors to abate
- The regional development aspect, including feedstock sourcing from local farms, creates a comprehensive SAF ecosystem
This project could serve as a blueprint for large-scale SAF production in the U.S., potentially accelerating the industry's growth. The integration of renewable hydrogen and electricity production also enhances the overall sustainability profile. Investors should note the potential for MRL to capture significant market share as airlines increasingly seek to reduce their carbon footprint.
- Montana Renewables to expand Sustainable Aviation Fuel capacity by 300 million gallons per year
The expansion would position Montana Renewables as one of the largest Sustainable Aviation Fuel ("SAF") producers globally with production capacity of approximately 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel ("RD").
"We would like to thank the DOE LPO team for its dedication and partnership during this process," said Bruce Fleming, CEO of Montana Renewables. "Furthermore, our commitment to expanding SAF supply benefits the local community, the
MRL expects to execute a sequence of discrete individual projects including: a second renewable fuels reactor (allowing approximately half of the 300 million gallon SAF capability to be online by 2026); debottlenecking of the existing renewable fuels and feedstock pretreatment units; installation of SAF blending and logistics assets; increased renewable hydrogen production; addition of cogeneration for renewable electricity and steam; on-site water treatment and recycling capabilities; and other site enhancements.
"Our MaxSAF™ planned expansion is fully aligned with strategic national interest in low-emission sustainable alternatives," Fleming continued. "The expansion will directly replace fossil jet and diesel; reduce MRL's carbon footprint by producing more renewable hydrogen and electricity; and contribute to regional economic development."
Regional Development
An economic impact study1 produced by the University of Montana Bureau of Business and Economic Research (BBER) measured the substantial benefit to
MRL expects the expansion to catalyze additional regional development, particularly for renewable feedstocks sourced from farms and ranches. By driving local infrastructure development in transportation, agricultural and energy related businesses similar to the Minnesota SAF Hub, MRL will create a large-scale, end-to-end SAF industry comprised of public and private partners in
The MRL expansion is expected to create, at its peak, 450 construction jobs and up to 40 operations jobs.
Conditional Commitment Framework
The Conditional Commitment contemplates a loan guarantee structured in two tranches. The first tranche of approximately
If finalized, the loan will have a 15-year tenor and an annual interest rate at the
A
While this conditional commitment represents a significant milestone and demonstrates DOE's intent to finance the project, certain technical, legal, environmental and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding of the loan guarantee.
"Through our collaboration with the
About SAF
Sustainable Aviation Fuel (SAF) is a combination of synthetic paraffinic kerosene (SPK) and conventional jet fuel meeting ASTM D7566 and ASTM D1655 specifications. Designed to reduce the aviation industry's carbon footprint, SAF is drop-in compatible with existing aviation fueling infrastructure and aircraft engine technology. SAF volumes in this press release refer to
About Montana Renewables
Montana Renewables is a leading renewable fuel company located in
About Calumet
Calumet, Inc. (NASDAQ: CLMT) manufactures, formulates, and markets a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. Calumet is headquartered in
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "will," "may," "intend," "believe," "expect," "outlook," "forecast," "anticipate," "estimate," "continue," "plan," "should," "could," "would," or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements regarding (i) our expectations regarding the loan facility (the "DOE Facility") that MRL expects to receive from the DOE LPO, including the timing, size and intended use of borrowings under such facility, (ii) our expectation that the DOE Facility will enable MRL to complete the MaxSAF™ construction and that such project will be completed on time and on budget, (iii) whether and when the DOE Facility will be funded, including whether and when certain conditions such as negotiation of definitive financing documents will be satisfied, (iv) our expectation regarding our business outlook and cash flows, including with respect to the Montana Renewables business, and (v) our ability to meet our financial commitments, debt service obligations, debt instrument covenants, contingencies and anticipated capital expenditures. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause our actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include, but not limited to: the overall demand for renewable fuels, including SAF and RD; our ability to produce renewable fuel products that meet our customers' unique and precise specifications; the marketing of alternative and competing products; the impact of fluctuations and rapid increases or decreases in renewable fuel margins, including the resulting impact on our liquidity; our ability to comply with financial covenants contained in our debt instruments; labor relations; our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit ratings and ability to receive open credit lines from our suppliers; demand for various feedstocks and resulting changes in pricing conditions; fluctuations in refinery capacity; our ability to access sufficient feedstocks; the effects of competition; continued creditworthiness of, and performance by, counterparties; the impact of current and future laws, rulings and governmental regulations shortages or cost increases of power supplies, natural gas, materials or labor; weather interference with business operations; our ability to access the debt and equity markets; accidents or other unscheduled shutdowns; and general economic, market, business or political conditions, including inflationary pressures, instability in financial institutions, general economic slowdown or a recession, political tensions, conflicts and war (such as the ongoing conflicts in
For additional information regarding factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including the risk factors and other cautionary statements in the latest Annual Report on Form 10-K of Calumet Specialty Products Partners, L.P. (the "Partnership") and other filings with the SEC by Calumet, Inc. and the Partnership.
We caution that these statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties, and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. While our management considers these assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in our forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by applicable law. Certain public statements made by us and our representatives on the date hereof may also contain forward-looking statements, which are qualified in their entirety by the cautionary statements contained above.
1 https://www.bber.umt.edu/pubs/Econ/Calumet-Impact-Report.pdf
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SOURCE Calumet, Inc.
FAQ
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