XCF Global, DevvStream, and Southern Energy Renewables have signed a binding term sheet to merge their operations, creating a platform aimed at expanding sustainable aviation fuel production and carbon management across North America. The merger, pending board approvals and a definitive agreement, will combine XCF’s SAF production scale, Southern’s biomass expertise, and DevvStream’s environmental-asset capabilities.
Chris Cooper, XCF’s CEO, highlighted the strategic opportunity, saying the 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.”
The agreement lays the groundwork for integrating innovative energy solutions, including small modular reactor nuclear power and electro-sustainable aviation fuel pathways, as well as AI-driven energy management. A committed investor will fund upgrades at XCF’s New Rise Reno facility, enhancing mechanical, electrical, and process infrastructure to bring production to sustained commercial levels.
Setting up for a growing SAF market
Sunny Trinh, DevvStream’s CEO, emphasized operational advantages: “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.”
Jay Patel of Southern Energy Renewables added that the merger “could create a U.S.-based platform that can compete globally,” citing Southern’s biomass feedstock focus as a complement to XCF’s production footprint.
XCF Global has been a leading innovator in the SAF market. After its Nasdaq listing in June 2025 under ticker SAFX, the company launched commercial production at its New Rise Reno facility, which now has a nameplate capacity of 38 million gallons annually. The company has leveraged long-term feedstock and offtake agreements, including a 15-year contract with Phillips 66, to underpin its expansion plans.
The merger occurs amid uncertainty over U.S. federal incentives for SAF, which are set to expire in 2027. State-level programs, such as Nevada’s AB 481, are emerging to support domestic production. Globally, Europe’s stringent SAF mandates and developing policies in Asia are driving growing demand for low-carbon aviation fuel.
Read more: XCF Global Closes Business Combination With Focus Impact BH3, Floats On Nasdaq
