Trump administration approves sustainable aviation fuel refinery loan

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February 11, 2025 5:25 PM EST

FILE PHOTO: U.S. Sen. Steve Daines (R-MT) speaks to reporters, next to U.S. Senate Minority Leader Mitch McConnell (R-KY), following the weekly Senate caucus luncheons on Capitol Hill in Washington, U.S., September 24, 2024. REUTERS/Piroschka van de Wouw/

By Timothy Gardner

WASHINGTON (Reuters) - President Donald Trump's energy department said on Tuesday it approved the disbursement of a loan guarantee that had been finalized days before he took office to Calumet for the expansion of a sustainable aviation fuel refinery in Montana.

The Montana Renewables refinery in Great Falls opened in late 2022 and produces about 140 million gallons a year of biofuels. The loan will allow it to expand production to 315 million gallons per year, and produce about half of North American SAF, a fuel made from fats from seed oils and tallow that is lower in greenhouse gas emissions than conventional jet fuel.

President Joe Biden's administration had finalized the loan on January 10.

But there have been widespread worries among green energy backers that finalized loans of the department's Loan Programs Office would be clawed back by the Trump administration given efforts by billionaire Elon Musk's Department of Government Efficiency to cut spending. Biden's Inflation Reduction Act boosted LPO's loan authority by $100 billion.

Although it approved the disbursement of the Montana loan, the energy department "is continuing to conduct a department-wide review of all funding, including grants and loans, to ensure all activities are consistent with the law and in accordance with President Trump’s executive orders and priorities," a spokeswoman said.

U.S. Senator Steve Daines, a Republican from Montana, said the approval only happened after he pressed the White House and emphasized that it helped reach Trump's goal of "energy dominance."

Daines said the expansion is expected to create close to 500 jobs.

(Reporting by Timothy Gardner; Editing by Bill Berkrot)


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