Federal grant to aid Citgo project in East Chicago

Citgo Petroleum in East Chicago will receive an $18.3 million grant from the U.S. Department of Transportation to establish the Chicago Area SAF Blending Hub-Citgo Terminal in East Chicago.

United States Rep. Frank J. Mrvan, D-Highland, on Thursday announced the grant from the Federal Aviation Administration's Fueling Aviation's Sustainable Transition grant program.

The project is intended to enable the delivery, unloading, blending and use of up to 42,000 gallons per day of sustainable aviation fuel, or SAF.

"Congratulations to Citgo Petroleum on this initiative to further lead Northwest Indiana in the development of sustainable aviation fuels that will reduce emissions and create more economic activity in our region," Mrvan said in a news release announcing the grant. 

Karl Schmidt, Citgo vice president of supply and marketing, said the award is the first step in the company's efforts to enter the sustainable aviation fuel market.

"Our East Chicago terminal is one of our largest and is strategically located in the Midwest, making it an ideal SAF installation and one that we can model as we continue exploring additional SAF opportunities across our refining and marketing system,” Schmidt said.

The FAST grant program was established under the Inflation Reduction Act of 2022.