DevvStream Corp. and Southern Energy Renewables have entered into a definitive agreement to combine into a new US-domiciled, Nasdaq-listed company focused on large-scale production of carbon-negative sustainable aviation fuel (SAF) and green methanol.
The merger brings together DevvStream’s carbon-monetization expertise and Southern’s biomass-to-fuels technology platform, anchored by a flagship project in Louisiana that will convert regional wood-waste biomass into low-carbon fuels.
The combined company, expected to be named Southern Energy Renewables and led by incoming CEO Carl Stanton, aims to build a vertically integrated clean-fuels business serving aviation and maritime operators facing increasingly stringent mandates.
Regulatory pressures from programs such as ReFuelEU and the International Maritime Organization are pushing carriers toward lower-carbon alternatives, but high costs remain a key barrier. Management believes the merger creates a pathway to reduce the effective cost of low-carbon fuels by pairing fuel production with environmental-asset generation.
A Louisiana-Anchored Platform Targeting Cost-Competitive, Carbon-Negative SAF
Southern’s planned Louisiana facility will be the first major project within the combined platform, using waste biomass and integrated carbon capture to produce green methanol and carbon-negative SAF with one of the lowest lifecycle carbon intensities on the market.
The company expects to leverage federal incentives in the near term but is designing the system to achieve long-term cost competitiveness independent of subsidies, supported by co-products generated throughout the process.
Executives emphasized Louisiana’s strategic advantages, including feedstock availability, logistics infrastructure, and an experienced industrial workforce. The State of Louisiana has been an early partner in the project, with both companies signaling continued collaboration as development progresses.
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The transaction also includes a $2 million PIPE investment from Southern into DevvStream at $15.58 per share, an endorsement of DevvStream’s carbon-asset business and its role in lowering effective fuel costs for offtakers.
Upon closing, Southern shareholders are expected to own roughly 70% of the combined company and DevvStream shareholders about 30%.
The merger is anticipated to close in the first half of 2026, subject to shareholder, regulatory, and Nasdaq approvals, as well as effectiveness of the Form S-4 registration.
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