05:01 PM EST, 01/10/2025 (MT Newswires) -- Calumet (CLMT) said Friday it closed a $1.44 billion guaranteed loan facility with the US Department of Energy to back the construction and expansion of the renewable fuels facility owned by its subsidiary, Montana Renewables.

The expansion project is set to position Montana Renewables as one of the largest sustainable aviation fuel producers globally, increasing annual production capacity to about 300 million gallons of SAF, according to the company.

The company said that the first tranche of $782 million will fund previously incurred eligible expenses, with additional funds disbursed during construction through 2028.

Calumet shares were rising nearly 8% in after-hours trading.