Calumet's (CLMT) Montana Renewables unit plans to expand sustainable aviation fuel, or SAF, production to approximately 200 million gallons per year by the end of 2028 under a revised expansion plan requiring $137 million in remaining capital spending, the company said Tuesday.

The revised plan reduces remaining project capital spending from the $1.2 billion contemplated under Montana Renewables' original Phase 2 plan.

The plan repurposes equipment from Calumet Montana Refining's adjacent asphalt facility and divides the expansion into six small, controllable, quick-payback projects, it said.

Montana Renewables expects SAF production to exceed an 80 million-gallon annual run rate by year-end 2026 and surpass 120 million gallons by spring 2027, while total renewable product sales are expected to reach 17,000 barrels per day by year-end 2028, Calumet said.

Calumet and the US Department of Energy amended their Loan Guarantee Agreement, reducing the remaining funding to a single $34 million draw from up to $658 million previously available, according to a company statement.

Montana Renewables expects to fund the balance of the expansion from its earnings, with no third-party equity requirement, Calumet said.