Green Fuel Powerhouse: Three-Way Merger Aims to Dominate SAF Market

HOUSTON & SACRAMENTO, Calif. – January 26, 2026

In a landmark move poised to reshape the clean energy landscape, sustainable aviation fuel (SAF) producer XCF Global, carbon monetization firm DevvStream, and biomass developer Southern Energy Renewables have announced a binding term sheet for a three-party merger. The deal aims to create a vertically integrated powerhouse designed to accelerate the production of low-carbon fuels and dominate the burgeoning SAF market in North America and beyond.

The proposed combination intends to forge a unified platform that seamlessly integrates feedstock development, large-scale fuel production, and the monetization of environmental credits. This strategic consolidation brings together complementary assets and expertise, creating an end-to-end solution for decarbonizing the hard-to-abate aviation sector. If the merger is successfully consummated, the combined entity would be positioned as a formidable player at a critical moment when global demand for SAF far outstrips supply.

A Vertically Integrated Strategy for SAF Dominance

The core of the merger's strategy lies in combining the distinct strengths of each company into a single, efficient value chain. XCF Global (Nasdaq: SAFX) brings its production capabilities to the table, most notably its New Rise Reno facility, which has a permitted nameplate capacity of 38 million gallons per year. A key component of the agreement is an immediate infusion of capital from an investor to fund critical upgrades at the Reno refinery. These funds are earmarked to complete mechanical and process upgrades, procure necessary catalyst and infrastructure, and finalize commissioning, with the ultimate goal of bringing the facility into sustained commercial production.

Chris Cooper, Chief Executive Officer of XCF, highlighted the strategic fit, stating, “We are excited to formalize a proposed final structure with DevvStream and Southern on what we believe will be a very accretive and excellent opportunity. We believe this combination has the potential to further validate the value XCF brings to the SAF industry while increasing shareholder value and providing alternative clean fuel opportunities. If consummated, this merger has the potential to solidify our footprint in North America as the supreme SAF producer.”

Complementing XCF’s production assets is Southern Energy Renewables, a developer focused on sustainable biomass feedstocks and large-scale projects designed to produce carbon-negative SAF and green methanol. Southern's role is expected to secure and scale the raw material inputs necessary for fuel production, mitigating feedstock volatility and ensuring a stable supply chain—a common bottleneck in the biofuels industry.

“Southern’s approach is centered on sustainable biomass feedstocks and scalable fuel pathways, and we see meaningful potential in combining that focus with XCF’s production footprint and ability to accelerate commercialization,” added Jay Patel, Chief Executive Officer of Southern Energy Renewables.

The final piece of the puzzle is DevvStream (Nasdaq: DEVS), a firm specializing in carbon management and monetizing environmental assets. This integration is crucial for the financial viability of the entire operation, turning green credentials into a tangible revenue stream.

Riding the Green Wave: The Booming SAF Market

The timing of this merger could not be more opportune. The global aviation industry is under immense pressure to decarbonize, with major airlines and industry bodies like the International Air Transport Association (IATA) setting aggressive targets for SAF adoption, aiming for net-zero emissions by 2050. Despite this surging demand, SAF production remains a fraction of the world's total jet fuel consumption. IATA data shows that while SAF production tripled in 2023, it still accounted for a minuscule portion of the industry's needs, highlighting a massive supply gap that the new entity is designed to fill.

Government incentives are fanning the flames of this green-gold rush. In the United States, the Inflation Reduction Act (IRA) provides substantial tax credits, such as the Clean Fuel Production Credit, which significantly improves the economic case for SAF. These policies are designed to bridge the "green premium"—the cost difference between sustainable fuels and their fossil-based counterparts—making projects like the New Rise Reno facility more attractive to investors and customers.

Sunny Trinh, CEO of DevvStream, emphasized the importance of a U.S.-based, integrated platform in this environment. “We believe the next phase of SAF adoption will favor U.S.-based platforms that can move quickly, operate at scale, and better integrate environmental attributes into the fuel value chain to support project economics and customer confidence,” he commented.

The Value of Green: Monetizing Decarbonization

A key differentiator for the proposed merged company is its built-in mechanism for monetizing its environmental benefits, a capability driven by DevvStream. Sustainable aviation fuel production generates valuable environmental attributes beyond the fuel itself. These can include carbon credits from displacing fossil fuels, credits under Low Carbon Fuel Standard (LCFS) programs like California's, and potentially Renewable Energy Certificates (RECs).

DevvStream's expertise lies in navigating the complex landscape of measuring, verifying, and selling these assets on both voluntary and compliance carbon markets. By integrating this function directly into the production lifecycle, the company can create an additional, high-margin revenue stream. This financial strategy not only boosts profitability but also de-risks the capital-intensive business of fuel production. For corporate customers, particularly airlines, this integration offers a more robust and transparent way to meet their own sustainability goals, providing confidence that the environmental claims are verified and credible.

This model, combining industrial production with sophisticated environmental finance, represents a new paradigm for clean energy companies. It moves beyond simply selling a physical commodity to marketing a comprehensive decarbonization solution, where the carbon reductions themselves are a valuable, tradable asset.

Beyond Biofuels: A Glimpse into the Future with SMRs and eSAF

While the immediate focus is on scaling up existing biofuel pathways, the partners have also signaled a far more ambitious, long-term vision. The binding term sheet includes plans to explore the integration of small modular reactor (SMR) nuclear power with the production of electro-sustainable aviation fuel (eSAF), also known as power-to-liquids (PtL).

This forward-looking strategy tackles the primary challenges of next-generation synthetic fuels: the need for immense quantities of clean, reliable, and affordable electricity. eSAF is produced by synthesizing green hydrogen (created via electrolysis using renewable power) with captured carbon dioxide. While considered a pathway to truly net-zero aviation, its production is currently energy-intensive and prohibitively expensive.

SMRs—small, factory-built nuclear reactors—could provide the round-the-clock, carbon-free power and high-temperature heat needed to make eSAF production economically viable at scale. The plan also mentions powering AI data centers, another energy-intensive industry, suggesting a vision for integrated, low-carbon industrial hubs. While the commercial deployment of SMRs and eSAF technology is still several years away and subject to significant regulatory and technological hurdles, its inclusion in the merger's framework underscores a commitment to long-term innovation and industry leadership. This dual strategy of executing on near-term commercial production while simultaneously developing next-generation solutions positions the combined entity to compete not just in today's market, but in the energy landscape of tomorrow.

The successful negotiation and approval of a definitive agreement will be the next critical step for the three companies. If they succeed, their integrated model could set a new standard for how sustainable fuels are produced, financed, and brought to market, providing a significant boost to the aviation industry's challenging journey toward a net-zero future.