Calumet Scales Back Montana Renewables Expansion Strategy

The company aims to reach an annual production capacity of 200 million gallons of sustainable aviation fuel by the end of 2028, targeting 17,000 barrels per day in total product sales. By breaking the expansion into six smaller projects instead of one large-scale build, Calumet expects to accelerate throughput gains and lower unit costs while maintaining a simpler capital structure.

This strategic redirection prompted an amendment to a loan guarantee agreement with the U.S. Department of Energy. While the first tranche of $782 million was already utilized to recapitalize the subsidiary last year, the remaining available funding has been reduced from $658 million to a final draw of $34 million. Chief Executive Todd Borgmann stated the revised plan supports domestic energy security and innovative technology at a significantly lower cost than originally projected.