A $782 million loan to a Great Falls biofuel plant, Montana Renewables, was put on hold this week following the Trump administration’s directive to freeze federal grants and loans. The delay prompted Calumet, Montana Renewables’ parent company, to notify investors that the delay was to align with White House priorities. Montana Renewables CEO, Bruce Fleming, remains confident that the funds will resume once proper reviews are made.
This loan, part of a $1.67 billion loan guarantee from the U.S. Department of Energy, is meant to support the expansion of the biofuel plant in Great Falls. While the distribution of funds remains on hold, Calumet is hopeful that this pause will only be temporary.
The freeze on funding came after a Trump administration memo calling for a temporary review of all federal grants and loans, causing uncertainty among federal funding recipients. While a federal judge blocked the immediate implementation of the freeze, the Trump administration announced the rescinding of the order, with continued scrutiny of federal funding programs expected.
Montana Renewables plans to leverage area farmers to source feedstock materials for its biofuel production, with a long-term goal of creating a critical processing facility. The expansion of the biofuel plant in Great Falls, dependent on the federal loan guarantee, could potentially produce half of North American sustainable aviation fuel.
Despite the delay in funding, Calumet remains committed to the expansion of its biofuel segment, which is part of its pivot away from traditional oil and gas production. The company is confident that once the loan funds come in, they can move forward with their expansion plans, creating permanent and construction jobs in the process.
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