U.S. Department of Energy approves loan for sustainable aviation fuel refinery

The U.S. Department of Energy said on Tuesday it had approved the issuance of a loan guarantee to Calumet Corp (CLMT.O) that was finalized before Trump took office, according to Reuters news.

The renewable energy refinery in Great Falls, Montana, comes online at the end of 2022 and will produce about 140 million gallons of biofuels a year. The loan will help expand its capacity to 315 million gallons per year and make it one of the major SAF (sustainable aviation fuel) suppliers in North America. The fuel is made from seed oils and tallow fats and has lower greenhouse gas emissions than traditional jet fuel.

Although the DOE approved the loan disbursement, a full review of all funding, including grants and loans, is still underway to ensure that all activities are in compliance with the law and in line with President Trump’s executive orders and policy priorities, a spokeswoman said.