Montana Renewables Receives First Drawdown from $1.44 Billion DOE Loan Facility
Calumet (NASDAQ: CLMT) announced that Montana Renewables (MRL), its unrestricted subsidiary, has received its first drawdown of $782 million from a $1.44 billion DOE guaranteed loan facility. The loan will fund the construction and expansion of MRL's renewable fuels facility, positioning it as one of the largest global Sustainable Aviation Fuel (SAF) producers.
The expansion will increase annual production capacity to approximately 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel. The project includes several modular components, with a second renewable fuels reactor enabling half of the SAF capability to be online by 2026.
The loan is structured in two tranches: the first $782 million tranche was released for previously incurred expenses, accompanied by Calumet's $150 million equity investment. The second tranche of approximately $658 million will be disbursed during construction from 2025 through 2028. The 15-year loan carries an interest rate of U.S. Treasury rate plus 3/8%, with principal and interest payments deferred until project completion.
Calumet (NASDAQ: CLMT) ha annunciato che Montana Renewables (MRL), la sua sussidiaria non vincolata, ha ricevuto il primo prelievo di 782 milioni di dollari da un prestito garantito dal DOE di 1,44 miliardi di dollari. Il prestito finanzierà la costruzione e l'espansione dell'impianto di combustibili rinnovabili di MRL, posizionandolo come uno dei maggiori produttori globali di Sustainable Aviation Fuel (SAF).
L'espansione aumenterà la capacità di produzione annuale a circa 300 milioni di galloni di SAF e 330 milioni di galloni di SAF e diesel rinnovabile combinati. Il progetto include diversi componenti modulari, con un secondo reattore di combustibili rinnovabili che consentirà di avere metà della capacità di SAF operativa entro il 2026.
Il prestito è strutturato in due tranche: la prima tranche di 782 milioni di dollari è stata rilasciata per spese precedentemente sostenute, accompagnata da un investimento azionario di Calumet di 150 milioni di dollari. La seconda tranche di circa 658 milioni di dollari sarà erogata durante la costruzione dal 2025 al 2028. Il prestito di 15 anni prevede un tasso d'interesse pari al tasso del Tesoro statunitense più 3/8%, con il pagamento del capitale e degli interessi posticipato fino al completamento del progetto.
Calumet (NASDAQ: CLMT) anunció que Montana Renewables (MRL), su subsidiaria sin restricciones, ha recibido su primer desembolso de 782 millones de dólares de una línea de crédito garantizada por el DOE de 1.44 mil millones de dólares. El préstamo financiará la construcción y expansión de la instalación de combustibles renovables de MRL, posicionándola como uno de los mayores productores globales de Sustainable Aviation Fuel (SAF).
La expansión aumentará la capacidad de producción anual a aproximadamente 300 millones de galones de SAF y 330 millones de galones de SAF y diésel renovable combinados. El proyecto incluye varios componentes modulares, con un segundo reactor de combustibles renovables que permitirá que la mitad de la capacidad de SAF esté operativa para 2026.
El préstamo está estructurado en dos tramos: el primer tramo de 782 millones de dólares se liberó para gastos previamente incurridos, acompañado de una inversión de capital de Calumet de 150 millones de dólares. El segundo tramo de aproximadamente 658 millones de dólares se desembolsará durante la construcción entre 2025 y 2028. El préstamo a 15 años tiene una tasa de interés igual a la tasa del Tesoro de EE. UU. más 3/8%, con el pago de capital e intereses diferido hasta la finalización del proyecto.
Calumet (NASDAQ: CLMT)는 그 자회사인 Montana Renewables (MRL)가 7억 8천 2백만 달러의 첫 차압을 14억 4천만 달러의 DOE 보증 대출 시설에서 받았다고 발표했습니다. 이 대출은 MRL의 재생 연료 시설 건설 및 확장을 자금 지원하여, 이를 세계 최대의 지속 가능한 항공 연료(SAF) 생산업체 중 하나로 자리매김하게 할 것입니다.
이번 확장은 연간 생산 능력을 약 3억 갤런의 SAF 및 3억 3천만 갤런의 SAF와 재생 디젤을 결합하여 증가시킬 것입니다. 이 프로젝트는 여러 모듈형 구성 요소를 포함하며, 두 번째 재생 연료 반응기가 2026년까지 SAF 용량의 절반이 가동될 수 있도록 할 것입니다.
이 대출은 두 개의 트랜치로 구성되어 있습니다: 첫 번째 7억 8천 2백만 달러의 트랜치는 이전에 발생한 비용을 위해 해제되었으며, Calumet의 1억 5천만 달러의 자본 투자와 함께 제공됩니다. 약 6억 5천 8백만 달러의 두 번째 트랜치는 2025년부터 2028년까지 건설 중에 지급될 것입니다. 15년 대출은 미국 재무부 금리에 3/8%를 더한 금리를 적용하며, 프로젝트 완료 시까지 원금 및 이자 지급이 연기됩니다.
Calumet (NASDAQ: CLMT) a annoncé que Montana Renewables (MRL), sa filiale non contrainte, a reçu son premier tirage de 782 millions de dollars d'une ligne de crédit garantie par le DOE de 1,44 milliard de dollars. Ce prêt financera la construction et l'extension de l'installation de combustibles renouvelables de MRL, la positionnant comme l'un des plus grands producteurs mondiaux de Sustainable Aviation Fuel (SAF).
L'extension augmentera la capacité de production annuelle à environ 300 millions de gallons de SAF et 330 millions de gallons de SAF et de diesel renouvelable combinés. Le projet comprend plusieurs composants modulaires, avec un deuxième réacteur de combustibles renouvelables permettant à la moitié de la capacité de SAF d'être opérationnelle d'ici 2026.
Le prêt est structuré en deux tranches : la première tranche de 782 millions de dollars a été libérée pour des dépenses précédemment engagées, accompagnée d'un investissement en capital de Calumet de 150 millions de dollars. La deuxième tranche d'environ 658 millions de dollars sera versée pendant la construction de 2025 à 2028. Le prêt de 15 ans porte un taux d'intérêt égal au taux du Trésor américain plus 3/8%, avec des paiements de capital et d'intérêts différés jusqu'à l'achèvement du projet.
Calumet (NASDAQ: CLMT) gab bekannt, dass Montana Renewables (MRL), seine ungebundene Tochtergesellschaft, ihre erste Auszahlung von 782 Millionen US-Dollar aus einer vom DOE garantierten Kreditlinie von 1,44 Milliarden US-Dollar erhalten hat. Der Kredit wird den Bau und die Erweiterung der Anlage für erneuerbare Treibstoffe von MRL finanzieren und sie als einen der größten globalen Produzenten von Sustainable Aviation Fuel (SAF) positionieren.
Die Erweiterung wird die jährliche Produktionskapazität auf etwa 300 Millionen Gallonen SAF und 330 Millionen Gallonen kombinierte SAF und erneuerbare Diesel erhöhen. Das Projekt umfasst mehrere modulare Komponenten, wobei ein zweiter Reaktor für erneuerbare Treibstoffe es ermöglichen wird, dass die Hälfte der SAF-Kapazität bis 2026 online ist.
Der Kredit ist in zwei Tranchen strukturiert: Die erste Tranche von 782 Millionen US-Dollar wurde für zuvor angefallene Ausgaben freigegeben, begleitet von Calumets Eigenkapitalinvestition von 150 Millionen US-Dollar. Die zweite Tranche von etwa 658 Millionen US-Dollar wird während der Bauarbeiten von 2025 bis 2028 ausgezahlt. Der 15-jährige Kredit hat einen Zinssatz von dem US-Schatzzins plus 3/8%, wobei die Rückzahlungen von Kapital und Zinsen bis zur Fertigstellung des Projekts ausgesetzt sind.
- Secured $1.44 billion DOE loan facility with favorable terms (Treasury rate + 0.375%)
- Expansion to increase production capacity to 300M gallons of SAF annually
- First tranche of $782M already received
- Project expected to create 450 construction jobs and 40 operations jobs
- Principal and interest payments deferred until project completion
- Additional $150M equity investment required from company cash reserves
- Second tranche disbursement subject to various conditions precedent
- Extended construction timeline through 2028
Insights
The $1.44 billion DOE loan facility represents a game-changing development for Calumet, with several strategic advantages beyond mere capacity expansion. The initial $782 million drawdown, combined with Calumet's $150 million equity investment, provides robust funding for the company's ambitious SAF expansion plans while maintaining a conservative 55% debt capitalization ratio.
The loan's exceptionally favorable terms - 15-year tenor at Treasury rate plus 0.375% - significantly reduce financing costs compared to traditional corporate debt, enhancing project returns. The deferred principal and interest payments until project commissioning provide important flexibility during the construction phase, effectively creating a grace period that preserves cash flow.
The expansion to 300 million gallons of annual SAF capacity positions Calumet as a dominant player in the rapidly growing sustainable aviation fuel market. With the modular approach allowing half of this capacity to come online by 2026, the company can capture early market share while managing execution risk. The project's DOE backing also serves as a powerful validation of the technology and business model, potentially facilitating future partnerships with airlines and other stakeholders.
The economic multiplier effect, as evidenced by the University of Montana study projecting support for 4,400 Montanans by 2028, suggests significant regional development benefits that could create additional business opportunities and political support for future expansions.
- Initial loan proceeds of
$782 million - Balance of proceeds to be funded during planned expansion from 2025 through 2028
- DOE loan guarantee facilitates expansion of Sustainable Aviation Fuel capacity to 300 million gallons per year
The expansion positions Montana Renewables as one of the largest Sustainable Aviation Fuel ("SAF") producers globally, enabling an increase in annual production capacity to approximately 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel ("RD"). The planned expansion includes several key modular components, which will provide the ability to increase capacity and reduce costs. The most important component is a second renewable fuels reactor, which will allow approximately half of the 300-million-gallon SAF capability to be online by 2026.
"DOE's mission includes technology and domestic energy security. MRL delivers both," said Bruce Fleming, CEO Montana Renewables. "Over the past three years DOE's Loan Program Office conducted a rigorous due diligence process supported by experts in technology, markets, law, underwriting, and risk, and MRL qualified on the merits. The incoming administration took time to verify this and we appreciate the office's thoroughness. Today we are pleased to continue leading
"Montana Renewables has been at the cutting edge of a rapidly developing biofuels market since its inception," said Todd Borgmann, CEO of Calumet. "MRL proved itself as an early mover in large scale SAF production, and now we are proud to be the first project to receive the support of our new Administration. I thank the entire DOE team for its continued commitment to supporting this practical and rapidly growing form of aviation fuel and for taking the time to ensure our nation's investments are prudent ones. The expansion of Montana Renewables into one of the world's largest SAF producers is an exceptional opportunity for regional agriculture,
Loan Guarantee Structure
The loan guarantee is structured in two tranches, with the first tranche of approximately
Regional Development
An economic impact study1 produced by the University of Montana Bureau of Business and Economic Research (BBER) measured the substantial benefit to Montana in the form of jobs, income, government revenues, economic output and population. For example, by 2028, the economic footprint of the Great Falls site is expected to support a population of 4,400 Montanans, consisting primarily of working-aged families and their children.
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 Montana and the Pacific Northwest.
The MRL expansion is expected to create 450 construction jobs and up to 40 operations jobs.
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 funding of the second tranche under the loan facility (the "DOE Facility") that MRL received from the DOE LPO and the intended use of borrowings under such facility, (ii) our expectation that the DOE Facility will enable MRL to commission its second renewable fuels reactor by 2026, complete the MaxSAF™ construction by 2028 and that each phase of such project will be completed on time and on budget, (iii) our expectation regarding our business outlook and cash flows, including with respect to the Montana Renewables business, and (iv) 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; administration changes in the federal government and potential legislative enactments and administrative actions; 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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