Calumet Inc CLMT and Gevo Inc GEVO shares are on the move in extended trading Wednesday after the companies received conditional commitments from the U.S. Department of Energy (DOE).
What Happened With CLMT: Calumet announced Wednesday that the DOE Loan Programs Office awarded a conditional commitment for a loan guarantee of up to $1.44 billion to fund the construction and expansion of a renewable fuels facility owned by Calumet subsidiary Montana Renewables.
The loan guarantee is structured in two tranches. The first tranche of approximately $778 million is expected to close in the fourth quarter and be disbursed from 2025 through the anticipated completion of the project in 2028. A $150 million equity investment will also be made at the initial closing.
“Through our collaboration with the U.S. Department of Energy, we are thrilled to continue forward on the leading edge of our nation’s Sustainable Aviation Fuel transition,” said Todd Borgmann, CEO of Calumet.
“This investment will allow us to leverage our first-mover advantage and unique renewable hydrogen and pretreatment technologies to transform Montana Renewables into a world scale SAF producer.”
What Happened With GEVO: Gevo was also awarded a conditional commitment for a loan guarantee from the DOE’s Loan Programs Office, with disbursements totaling $1.46 billion. The commitment is related to the construction of the company’s Net-Zero 1 project (NZ1) in South Dakota.
“This marks a watershed moment for the Net-Zero 1 project and a critical step forward in Gevo’s mission to transform the aviation industry by providing a scalable, sustainable, and economical renewable-carbon-based jet fuel — SAF,” said Patrick Gruber, CEO of Gevo.
“This valuable commitment to help finance NZ1, if finalized, should also attract other capital investments to unlock SAF commercialization given the robust due diligence conducted by the agency.”
CLMT, GEVO Price Action: At publication time after market hours, Calumet shares were up 19.74% at $26.26 and Gevo shares were up 46.22% at $3.28, according to Benzinga Pro.
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