Trump administration approves sustainable aviation fuel refinery loan

The energy department of President Donald Trump announced on Tuesday that it had approved the disbursement to Calumet of a loan guaranteed which was finalized just days before his election. This loan guarantee is for the expansion of an aviation fuel refinery located in Montana.

Montana Renewables' refinery in Great Falls, Montana, opened its doors in late 2022. It produces biofuels in the amount of 140 million gallons per year. The loan will enable it to increase production to 315 millions gallons per annum and produce approximately half of North American SAF. This fuel is made from fats derived from seed oils and Tallow and emits less greenhouse gases than conventional jet fuel.

The loan was finalized by the administration of President Joe Biden on January 10, 2019.

Green energy supporters have expressed concern that the Trump administration will claw back finalized loans of Department of Government Efficiency, headed by Elon Musk. LPO's lending authority was boosted by $100 billion as a result of Biden's Inflation Reduction Act.

The energy department approved the Montana loan but is still reviewing all funding including grants and loans to make sure that all activities are in compliance with the law, and according to President Trump's priorities and executive orders.

U.S. Steve Daines from Montana is a Republican Senator who said that the White House only agreed to the deal after he asked them and stressed how it would help Trump achieve his goal of "energy dominant."

Daines stated that the expansion will create 500 or more jobs.

(source: Reuters)