DOE closes loan guarantee for Montana Renewables’ biofuels expansion

The Department of Energy’s (DOE) Loan Programs Office (LPO) has closed a $1.67 billion loan guarantee to Montana Renewables, LLC (MRL), including $1.44 billion in principal and $233 million in capitalized interest. 

The loan will support the expansion of MRL’s renewable fuels facility in Montana, which produces sustainable aviation fuel (SAF), renewable diesel, and renewable naphtha from vegetable oils, fats, and greases.

The facility, operational since late 2022, currently produces 140 million gallons of biofuels annually, primarily renewable diesel. 

The expansion, funded by the loan, will increase production to 315 million gallons annually, with SAF making up the majority. 

Once fully operational, the project is expected to contribute to about 50% of North America’s SAF output and 12% of global SAF by 2030.