Washington: The U.S. Department of Energy under President Donald Trump has approved the disbursement of a loan guarantee for Calumet to expand a sustainable aviation fuel (SAF) refinery in Montana. The loan, originally finalised just days before Trump took office, will help increase production at the Montana Renewables refinery in Great Falls, reports Reuters.
The refinery, which began operations in late 2022, currently produces about 140 million gallons of biofuels annually. With this loan, production will expand to 315 million gallons per year, making up nearly half of North America’s SAF supply. SAF, made from seed oils and animal fats, emits fewer greenhouse gases compared to conventional jet fuel.
The loan was initially finalised by the Biden administration on January 10. However, concerns arose among green energy advocates that funding from the Department of Energy’s Loan Programs Office (LPO) could be reversed due to spending cuts proposed by Elon Musk’s Department of Government Efficiency. The LPO had received a $100 billion boost under Biden’s Inflation Reduction Act.
Despite approving the Montana loan, the Energy Department stated that it is reviewing all grants and loans to ensure they align with President Trump’s policies and executive orders.
U.S. Senator Steve Daines, a Montana Republican, said he pushed the White House to approve the loan, arguing that the expansion supports Trump’s goal of “energy dominance.” He also noted that the refinery’s growth is expected to create nearly 500 jobs.
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