Source link : https://usa-news.biz/2024/10/19/montana/montana-renewables-gains-boost-from-us-doe-for-exciting-great-falls-saf-expansion/
Calumet’s Montana Renewables Secures Conditional Loan Guarantee from DOE
HOUSTON, Oct. 18— The U.S. Department of Energy (DOE) has granted a conditional‍ loan guarantee of up to $1.44 billion to Montana Renewables LLC (MRL), a division of Calumet Inc., aimed at expanding its renewable fuels manufacturing facility located in Great Falls, Montana.
This funding commitment from the DOE is contingent upon meeting specific technical, legal, environmental, and financial prerequisites. Upon fulfillment of these conditions, the funding could facilitate the commencement of construction for MRL’s ambitious MaxSAF expansion project. This initiative aims to enhance the current production capacity for sustainable aviation fuel (SAF) at Great Falls by over 700%, reaching an estimated output of around 300 million gallons per year.
Projected Increases in Production Capacity
Following the successful implementation of the MaxSAF expansion, MRL anticipates that combined production levels for SAF and renewable diesel will reach approximately 330 million gallons annually. At present, the facility produces about 15,000 barrels per day along with an annual output of 30,000 gallons each for renewable diesel and SAF respectively.
With engineering efforts already underway for this project as reported on July 10, 2023 (OGJ Online), MRL plans a multi-faceted approach during this expansion which includes:
The addition of a second reactor dedicated to renewable fuels that would allow half of its projected SAF production capability to be operational by 2026.Improvements focused on eliminating bottlenecks within existing feedstock pretreatment and renewable fuels units at the biorefinery.The installation of new blending technology and logistic systems related specifically to SAF handling.A boost in hydrogen production capacity designed specifically with renewability in mind.Cogeneration systems aimed at producing renewable electricity and steam concurrently.The establishment of on-site facilities dedicated to water recycling and treatment processes.Additional improvements yet to be detailed publicly but planned during this phase.”A Breakdown of Loan Conditions
The DOE’s proposed conditional financing construct consists primarily of two segments pertaining to loan guarantees that coincide with various stages leading up to project completion slated‌ for late 2028. The initial tranche is anticipated—pending finalization—to be around $778 million closing by Q4 this year; while subsequent funds will be drawn through either delayed draw or revolving credit from early construction periods starting next year through till completion in three years’ time.
If finalized as outlined above, these loans will operate under a fifteen-year framework alongside an interest rate set relative specifically against U.S Treasury rates plus three-eighths percent upon issuance. Moreover, payments concerning both principal repayment along with accrued interest are deferred until full commissioning occurs post-expansion completion according reports shared by MRL representatives.”
Furthermore creating additional support towards financing is a commitment involving $150 million investment equity upon initial closure alongside utilizing retained earnings maintained throughout buildout phases ensuring roughly balanced debt-to-equity ratios where Calumet holds fifty-five percent while publically assistive entities maintain remainder share thirty-five percent options available should future adjustments require altering overall structures surrounding larger sums outlined herein.”
The post Montana Renewables Gains Boost from US DOE for Exciting Great Falls SAF Expansion! first appeared on USA NEWS.
Author : Jean-Pierre CHALLOT
Publish date : 2024-10-20 00:42:08
Copyright for syndicated content belongs to the linked Source.
