The US Department of Energy has approved a loan guarantee for the expansion of Calumet's sustainable aviation fuel (SAF) refinery in Montana.

The loan will facilitate an increase in output from 140 million gallons to 315 million gallons per year, making up about half of the continent's SAF supply.

The Montana Renewables refinery, which commenced operations in late 2022, utilises fats from seed oils and tallow to produce a biofuel with lower greenhouse gas (GHG) emissions than conventional jet fuel.

The expansion is set to create nearly 500 jobs, contributing to economic growth and supporting President Donald Trump's energy policy objectives.

Despite concerns from green energy advocates about potential rollbacks of departmental loans by the Trump administration, the loan guarantee, finalised on 10 January 2025 under former President Biden's tenure, has been confirmed.

This comes in the wake of the Inflation Reduction Act, which bolstered the Loan Programmes Office's loan authority by $100bn.

A spokeswoman was quoted by the news agency as saying that 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".

US Senator Steve Daines from Montana, a Republican, played a key role in securing the loan's approval.

He emphasised that the refinery's expansion aligns with Trump's aim for "energy dominance".

Trump has also unveiled a plan to maximise oil and gas production, reversing former President Biden's efforts to reduce fossil fuel reliance.

The measures include declaring a national energy emergency to fast-track permits, rolling back environmental safeguards and withdrawing from the 2015 Paris climate agreement.