Calumet subsidiary Montana Renewables closed a $1.44 billion guaranteed loan facility from the U.S. Department of Energy’s Loan Programs Office (LPO) to help finance expansion of the company’s renewable fuels facility in Great Falls, Montana.

Montana Renewables is expected to produce about half of North America’s sustainable aviation fuel (SAF) and about 12% of the SAF produced globally when the expansion project reaches full capacity, the LPO said Jan. 10.

“As the aviation sector aims to meet its decarbonization goals, SAF will become increasingly vital,” the LPO said. “SAF is one of the only viable near-term options to decarbonize the airline industry, which is responsible for 11% of U.S. transportation emissions or 3.3% of total U.S. emissions.”

Called MaxSAF, the expansion project will lift annual production capacity to about 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel, Calumet said.

That’s up from about 140 million gallons per year of biofuels, mostly renewable diesel, produced today.

“This is essentially the largest agricultural investment in Montana history and will double our purchases of seed oils and tallow from approximately 1.5 billion pounds per year today to 3 billion pounds per year post expansion,” said Montana Renewables CEO Bruce Fleming. “This is possible through the strong support and partnership of DOE and follows over two years of detailed due diligence.”

The initial tranche of about $782 million is expected in January with the balance of proceeds funded through the planned construction period, according to a news release. The project is scheduled to begin coming online in 2026.

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