Montana Renewables, World Energy Partner on 70M Gallon SAF Deal

Two major players in the sustainable aviation fuel market, Montana Renewables, LLC (MRL) and World Energy, have announced a significant partnership to deliver over 70 million gallons of Sustainable Aviation Fuel (SAF) over the next three years. This sustainable aviation fuel agreement is designed to scale up the availability of lower-carbon fuels for the aviation industry, a key component of the sector's decarbonization strategy.

The collaboration combines the production capacity of one of North America's largest SAF producers with the market and distribution expertise of the world's first commercial-scale SAF provider. According to a joint press release, the deal is expected to reduce as much as 600,000 metric tons of Carbon Dioxide (CO2) emissions over its duration. This move addresses the growing demand from airlines and corporate clients for solutions to mitigate the environmental impact of air travel.

Partnership Details and Strategic Goals

Under the terms of the agreement, Montana Renewables will supply the SAF, while World Energy will manage its distribution to the market. The partnership leverages the distinct strengths of both companies to enhance efficiency in the SAF supply chain. MRL, an unrestricted subsidiary of Calumet, Inc. (NASDAQ: CLMT), operates a large-scale production facility in Great Falls, Montana.

Bruce Fleming, CEO of Montana Renewables, commented on the market dynamics driving the deal. "Market demand for SAF remains strong, and this agreement is another signal of our commitment to American energy independence and Montana agriculture," Fleming stated.

For World Energy, the agreement secures a substantial volume of SAF to support its growing client base, which uses carbon insets to meet corporate sustainability targets. "Contracting with MRL for SAF production enables us to better support our growing aviation decarbonization business," said Gene Gebolys, CEO of World Energy. "We are serving many of the most recognized and respected brands in the world in sectors including tech, pharma, aviation, finance, business services, and others to meet their decarbonization commitments."

Scaling Production with Government Support

The ability of Montana Renewables to commit to such a large volume is partly facilitated by significant government investment in scaling up domestic biofuel production. In January 2025, the U.S. Department of Energy (DOE) provided a $1.67 billion loan guarantee to Montana Renewables. According to the DOE's Loan Programs Office, this financial backing is intended to facilitate a major expansion of the Great Falls facility.

The expansion project is projected to increase MRL's annual production capacity to approximately 300 million gallons of SAF. This positions the company as a critical node in the domestic supply chain for advanced biofuels and supports broader federal goals for reducing reliance on fossil fuels in the transportation sector.

Industry Context and Market Growth

The aviation industry accounts for approximately 2% of all global CO2 emissions, creating intense pressure on airlines and their corporate customers to find viable decarbonization pathways. SAF is currently seen as the most promising near-term solution, as it can be used as a "drop-in" fuel in existing aircraft and infrastructure without requiring significant modifications.

The market for these fuels is expanding rapidly. Industry analysis projects the sustainable aviation fuel market will grow from USD 2.06 billion in 2025 to USD 25.62 billion by 2030, reflecting a compound annual growth rate (CAGR) of 65.5%. This growth is fueled by a combination of regulatory mandates, airline commitments, and corporate demand for lower-carbon travel options, often facilitated through carbon inset programs pioneered by firms like World Energy.

The details of the collaboration were outlined in a press release from the companies.

Why This Matters

This partnership between Montana Renewables and World Energy represents a significant step in the maturation of the SAF market. It demonstrates a move from pilot projects and small-batch production to long-term, high-volume supply agreements essential for industry-wide adoption. The deal underscores the increasing integration of production, finance, and distribution, signaling to the broader aviation and energy sectors that SAF is becoming a commercially viable and scalable component of climate strategy.

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