Sustainable aviation fuel (SAF) is seen as a key ingredient for helping to decarbonise the aviation business.
Following the crazy "drill, baby, drill" Trump mantra, his administration has begun exploring whether it can cancel financing for dozens of large-scale clean energy projects. But, thankfully, at least one project - an alternative jet-fuel refinery in Montana - is now moving forward after the DOE lifted its pause on a $1.44 billion loan guarantee.
The manufacturer Calumet said the funding process is back on track for its subsidiary, Montana Renewables, which plans to expand its biofuels facility in Great Falls, Montana. The company currently makes fuel for planes and trucks using seed oils and discarded animal fats. With the expansion, reports Canary Media, the refinery will be able to produce about 315 million gallons of SAF per year - and will be the USA's largest producer.
The Biden administration finalized the loan guarantee on January 10 during its last days in office. Montana Renewables was supposed to get access to an initial $782 million in loan proceeds starting on January 28.
But the funding was “delayed for a tactical review to ensure alignment with the new administration’s energy strategy,” Calumet said in a financial filing. The company said it was recently informed by the DOE that the “review has been successfully completed” and that the first tranche of funding is expected to go through any day now.
U.S. Sen. Steve Daines (R-Montana) said the DOE moved ahead with the Montana Renewables loan guarantee only after he pressed the White House to do so, Reuters reported. Daines said the Biden-backed SAF refinery supports Trump’s goal of “energy dominance” - though the senator has previously described Biden’s climate policies as a “radical anti-energy agenda.”