LOADING

Type to search

U.S DOE Announces $1.67 Billion to Montana Renewables to Expand Sustainable Fuel Production

U.S DOE Announces $1.67 Billion to Montana Renewables to Expand Sustainable Fuel Production

U.S DOE Announces $1.67 Billion to Montana Renewables to Expand Sustainable Fuel Production
Listen to this story:
  • Major SAF Production Boost: Montana Renewables’ expansion will increase biofuel output to 315 million gallons annually, making it a top global SAF producer.
  • Job Creation and Community Impact: The project will create 450 construction jobs and 40 new operational roles, with a focus on local and unionized hiring.
  • Decarbonization Milestone: Supports the Biden Administration’s goal of producing 3 billion gallons of SAF annually by 2030 and 35 billion by 2050.

The Department of Energy (DOE) has closed a $1.67 billion loan guarantee for Montana Renewables, LLC (MRL) to expand its renewable fuels facility in Great Falls, Montana. This expansion aims to produce sustainable aviation fuel (SAF), renewable diesel, and renewable naphtha. According to the DOE, the investment aligns with the Biden-Harris administration’s commitment to build a bioeconomy that reduces emissions and benefits disadvantaged communities.

Why It Matters:

The transportation sector is a major contributor to greenhouse gas emissions. SAF is seen as a critical solution for decarbonizing aviation, which accounts for 11% of U.S. transportation emissions. The MRL facility, operational since late 2022, will increase its biofuel output from 140 million to 315 million gallons per year, with SAF comprising the majority.

Once fully operational, Montana Renewables will supply approximately half of North America’s SAF and 12% globally,” the DOE stated.

Community and Economic Impact:

The project is expected to create 450 construction jobs and 40 permanent operational roles, many filled by local union workers represented by the United States Steelworkers Local 0491. MRL’s parent company, Calumet, has a history of supporting local education initiatives in STEM fields.

Environmental Justice Commitments:

Under the Justice40 Initiative, the DOE aims for 40% of federal climate and clean energy investments to benefit disadvantaged communities. Many neighborhoods near Great Falls are identified as overburdened by pollution and energy costs. MRL has prioritized local hiring and community engagement to address these disparities.

Related Article: U.S DOE Launches $900 Million for Next-Generation Nuclear Technology

The Bigger Picture:

The loan was approved under the DOE’s Energy Infrastructure Reinvestment (EIR) program, which supports projects repurposing existing energy infrastructure. MRL’s initiative involves converting part of an oil refinery to produce renewable fuels and reducing steam production emissions at a neighboring refinery.

What’s Next:

The SAF Grand Challenge aims to increase U.S. production to 3 billion gallons annually by 2030 and 35 billion by 2050. This loan is a key step in meeting those targets as the aviation sector works to meet its decarbonization goals.

Follow ESG News on LinkedIn

Topics

Related Articles