DevvStream, Southern Energy Renewables (Southern), and XCF Global have signed a non-binding memorandum of understanding (MoU) to examine the joint development of an integrated low-carbon fuels platform.
The proposed collaboration aims to boost the availability of sustainable aviation fuel (SAF) in the US, expand production capacity, and incorporate environmental-attribute monetisation into a single customer solution.
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The companies will evaluate the feasibility of building a “Gen 1” SAF facility in Louisiana using hydroprocessed esters and fatty acids (HEFA). This would complement Southern Energy Renewables’ previously announced biomass-based “Gen 2” SAF gasification plant.
This evaluation is part of ongoing negotiations towards a binding agreement that could see the creation of a commercial platform allowing customers to access fuel, logistics, and environmental attributes through one integrated offering.
DevvStream chairman Carl Stanton said: “Integrating environmental assets directly into the fuel value chain is essential to accelerating SAF deployment.
“This collaboration has the potential to bring together three distinct strengths – XCF’s production expertise, Southern’s developing advanced biomass platform, and DevvStream’s environmental-asset monetisation capabilities – to help improve project economics while giving airlines confidence in the integrity of their SAF purchases.”
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By GlobalDataAccording to the parties, the US market for SAF is projected to reach nearly $7bn by the end of this decade, with global demand forecasted to surpass 5.5 billion gallons and a total market value exceeding $25bn.
Projections for 2050 suggest the global SAF market could surpass $250bn.
The collaboration is intended to support this expected sector growth by increasing long-term supply across various production pathways and advancing the commercialisation and transparency of environmental attributes.
Environmental-attribute integration is expected to play a significant role in the potential collaboration. DevvStream is anticipated to oversee the creation, validation, and commercialisation of environmental assets tied to the platform’s potential low-carbon fuels.
These assets may include compliance and voluntary carbon credits, CORSIA units, renewable energy certificates, digital measurement, reporting, verification (MRV) tools, and tokenised tracking systems.
The companies also intend to jointly assess solutions for helping customers capture, verify, and monetise attributes such as low-carbon fuel standard (LCFS) credits, renewable identification numbers (RINs), and incentives under regulations such as 45Z/45Q.
Further evaluation will cover lifecycle analysis methodologies and carbon-intensity optimisation systems designed to improve project economics and uphold standards in SAF development.
Southern Energy Renewables CEO Jay Patel said: “We believe partnering with XCF and DevvStream would strengthen our ability to scale a multi-pathway SAF strategy grounded in real production capacity and real climate benefit.”
According to statements from the three companies, the MoU indicates an intention to pursue opportunities in sustainable aviation fuel and related low-carbon fuels.
However, all specific transactions or projects remain subject to due diligence, negotiation of final agreements, internal approvals, and any necessary regulatory clearance.
The MoU does not obligate any party to advance with any particular transaction or project at this stage.
XCF Global CEO Chris Cooper said: “This collaboration has the potential to create the foundation for a first-of-its-kind, fully integrated low-carbon fuels platform, linking production, logistics, and environmental-attribute systems into a seamless value chain.”
