The US Department of Energy is closing out the $1.67 billion loan guarantee made to Montana Renewables, LLC (MRL) for the company’s expansion of its production facility for renewable fuels in Great Falls, Montana, under the “Investing in America” plan for the Biden-Harris administration. They will make sustainable aviation fuel, renewable diesel, and renewable naphtha from it. This will be an indicator of commitment by the government in support of a bioeconomy that can promote clean sources of energy, curb emissions, and make healthy communities all over the United States.
Enhancing Biofuel Production as an Instrument of Tackling Climate Change
Since the end of 2022, the doubling of MRL’s capacity has been operational. This is one of the most significant measures the US has undertaken to decarbonize transportation and industrial sectors. This loan will help add an increase in the production of biofuel by some 140 million gallons per year to 315 million gallons They will mainly produce SAF from these increased volumes, as SAF is crucial for decarbonizing aviation. Once fully built out, the facility will produce 50% of North American and 12% of global SAF by 2030.
This will align with the expansion of U.S. SAF by the Biden-Harris administration to 3 billion gallons by 2030. SAF from MRL has a lower lifecycle greenhouse gas footprint than jet fuel, which is a clear sustainable solution for aviation.
Economic Opportunities and Employment Generation among the Local Communities
The project supports the Biden administration’s Justice40 Initiative, which channels 40% of federal investment benefits to underserved, environmentally challenged communities. The great majority of the facility’s existing workforce are union members of United Steelworkers Local 0491, working pursuant to a collective bargaining agreement. Calumet, MRL’s parent company, has a good track record of supporting local education, especially STEAM programs in Great Falls schools and colleges.
The project further supports the goals of the Justice40 Initiative issued by the Biden administration, calling for 40% of investments to be made within the benefits accorded to undervalued or environmentally challenged communities. Many communities around Great Falls face disadvantages due to high energy costs and housing expenses. MRL continues to ensure its workforce is majorly recruited from this local area following this initiative response.
Also read: Biden-Harris Administration Invests $14.8 Million to Boost Energy Efficiency
Producers of sustainable aviation fuel will also highly facilitate the reduction of carbon emission in aviation; this accounts for 11 percent of the emissions in transportations within the US.However, the aviation industry has a more extended way to work towards their set decarbonization goals, so the production of SAF will progressively become more pivotal.
MRL will use vegetable oils, fats, and greases to generate sustainable fuels with support for rural economic opportunities along with climate objectives.
The loan guarantee comes through the DOE’s Energy Infrastructure Reinvestment (EIR) program, part of the Title 17 Clean Energy Financing. This initiative finances projects that repurpose existing energy infrastructure to reduce emissions and environmental impact. For the MRL project, they will convert part of an oil refinery to produce renewable fuels and cut steam emissions.