Calumet reaches key application milestone for DOE loan guarantee

By Calumet Specialty Products Partners L.P. | March 29, 2023

Calumet Specialty Products Partners L.P. announced March 27 that its Montana Renewables subsidiary has been invited by the U.S. Department of Energy to submit a Part II Application for a $600 million loan guarantee through the Title XVII Innovative Clean Energy Loan Guarantee Program.

Established via Title XVII of the Energy Policy Act of 2005, the DOE-guaranteed loan if awarded would finance the manufacturing of 18,000 barrels per day of renewable diesel, sustainable aviation fuel, and renewable naphtha utilizing Haldor Topsoe's HydroFlex technology. Achieving this invitation to the Part II process is a key milestone for Calumet in the Department of Energy's Loan Programs Office (LPO) process.

DOE's invitation to submit a Part II application is not an assurance that DOE will invite an applicant into the due diligence and term sheet negotiation process, that DOE will offer a term sheet to an applicant, that DOE will issue a loan guarantee, or that the terms and conditions of a loan guarantee will be consistent with terms proposed by an applicant. The foregoing matters are wholly dependent on the results of DOE review and evaluation of a Part II Application, and DOE's determination whether to proceed.

"On behalf of all of Calumet, we thank the LPO for the opportunity to advance to Phase II of the loan application process," said Bruce Fleming, CEO of Montana Renewables LLC. "We truly believe MRL is one of the best renewable diesel and sustainable aviation fuel businesses in the market and we are excited to continue to lead the energy transition in North America."