WASHINGTON, Feb 11 (Reuters) - President Donald Trump's

energy department said on Tuesday it approved the disbursement

of a loan guarantee that had been finalized days before he took

office to Calumet for the expansion of a sustainable

aviation fuel refinery in Montana.

The Montana Renewables refinery in Great Falls opened in

late 2022 and produces about 140 million gallons a year of

biofuels. The loan will allow it to expand production to 315

million gallons per year, and produce about half of North

American SAF, a fuel made from fats from seed oils and tallow

that is lower in greenhouse gas emissions than conventional jet

fuel.

President Joe Biden's administration had finalized the loan

on January 10.

But there have been widespread worries among green energy

backers that finalized loans of the department's Loan Programs

Office would be clawed back by the Trump administration given

efforts by billionaire Elon Musk's Department of Government

Efficiency to cut spending. Biden's Inflation Reduction Act

boosted LPO's loan authority by $100 billion.

Although it approved the disbursement of the Montana loan,

the energy department "is continuing to conduct a

department-wide review of all funding, including grants and

loans, to ensure all activities are consistent with the law and

in accordance with President Trump's executive orders and

priorities," a spokeswoman said.

U.S. Senator Steve Daines, a Republican from Montana, said

the approval only happened after he pressed the White House and

emphasized that it helped reach Trump's goal of "energy

dominance."

Daines said the expansion is expected to create close to 500

jobs.