US Montana Renewables Adjusts MaxSAF Expansion Plan, Remaining Investment Reduced to $137 Million

en.Wedoany.com Reported - On September 1, Montana Renewables, a subsidiary of Calumet, adjusted its MaxSAF sustainable aviation fuel expansion project in Great Falls, Montana, shifting from the originally planned large-scale Phase II expansion to six phased retrofit projects. Following the adjustment, remaining capital expenditures were reduced from approximately $1.2 billion under the original plan to $137 million, with the SAF annual production capacity target revised from roughly 300 million gallons to approximately 200 million gallons by the end of 2028, while the plant's overall renewable product sales capacity is planned to increase by 40% to 17,000 barrels per day.

The new plan will focus on leveraging existing equipment at the adjacent Calumet Montana Refining asphalt refinery. Equipment slated for transfer and retrofit through long-term leasing arrangements includes hydrotreating units, hydrogen production units, and naphtha separation units. Once the existing hydrotreating unit is integrated, Montana Renewables will establish a dual-reactor configuration, with the second reactor primarily handling post-treatment duties. The company also retains the option to incorporate a third renewable fuel reactor currently located off-site into future expansion phases, supporting capacity growth beyond 200 million gallons per year.

Montana Renewables completed a round of debottlenecking retrofits during its spring 2026 turnaround, and current SAF production is running at an annualized rate of approximately 60 million gallons. Under the revised implementation plan, SAF production capacity will exceed 80 million gallons per year by the end of 2026, surpass 120 million gallons per year in spring 2027, and reach approximately 200 million gallons per year by the end of 2028. Some new equipment tie-in work is scheduled to be completed during the fourth-quarter 2026 turnaround.

Upon completion of the expansion, the project also plans to recover approximately 20 million gallons per year of renewable propane and butane previously used as fuel gas, and to increase renewable naphtha yield. Total plant feedstock consumption is expected to reach approximately 2 billion pounds per year, primarily using oil and fat feedstocks from agricultural and livestock sources to produce renewable aviation fuel, diesel, and gasoline products. The adjacent Calumet Montana Refining will continue producing retail asphalt and retain its existing workforce, with the two facilities sharing certain site infrastructure and costs going forward.

The financing plan has also been adjusted accordingly. Montana Renewables and the U.S. Department of Energy have amended the loan guarantee agreement signed in January 2025, reducing the original Phase II DOE funding commitment of up to $658 million to a final draw of $34 million, with the remaining $137 million in expansion capital primarily funded from Montana Renewables' retained earnings, and no longer requiring third-party equity investment. The final $34 million draw remains subject to commercial, technical, and legal conditions.

The first tranche of $782 million from the original DOE loan was disbursed in February 2025, used for Montana Renewables' recapitalization and qualifying prior expenditures, with Calumet concurrently contributing an additional $150 million in cash equity. The amended loan maintains a 15-year term with an annual interest rate of the prevailing U.S. Treasury rate plus 3/8 percentage point. Principal and interest payments continue to be deferred until the MaxSAF project commences operations, with the first debt service date remaining March 2029 and loan maturity in December 2039.