XCF Global (NASDAQ:SAFX), Southern Energy Renewables, and DevvStream Corp. announced a non‑binding memorandum of understanding on December 12, 2025 to jointly explore the development of a next‑generation low‑carbon fuels platform. The partnership seeks to accelerate the adoption of sustainable aviation fuel (SAF) by combining production, logistics, and environmental‑attribute monetization across the three companies’ complementary capabilities.
The collaboration will evaluate a New Rise Louisiana SAF facility that Southern Energy plans to build with a nameplate capacity of roughly 28 million gallons per year and an estimated project cost of $1.4 billion. The proposed plant would also produce 220 kilotons of methanol annually. The Louisiana facility would be smaller than XCF’s existing New Rise Reno plant, which has a capacity of about 38‑40 million gallons per year, but the partnership would allow the three firms to share feedstock, distribution networks, and carbon‑credit revenue streams.
XCF Global’s financial position remains fragile. The company has faced a Nasdaq delinquency notice for delayed filings and is at risk of delisting if its bid price falls below the required threshold. Cash reserves are low, debt is high, and operational disruptions at the Reno plant have delayed production resumption until Q1 2026. These challenges have weighed on investor confidence and underscore the importance of the partnership as a potential source of capital and operational synergies.
DevvStream Corp. reported a net loss of $11.8 million for its fiscal year ending July 31, 2025, up from a $9.9 million loss the year before. The company’s stock has been volatile, trading around $1.82 as of December 12, 2025, and it is pursuing a digital‑asset treasury strategy that includes Bitcoin and Solana holdings. The partnership offers DevvStream a way to monetize its environmental‑attribute expertise in a growing SAF market.
Southern Energy Renewables is focused on biomass‑to‑fuels projects and has secured authorization for up to $402 million in revenue bonds for its Louisiana plant. The company’s strategy centers on producing carbon‑negative SAF and green methanol, positioning it to benefit from regulatory incentives and corporate sustainability mandates.
Management emphasized the strategic value of the collaboration. XCF CEO Chris Cooper said, “By adding a second, fully integrated facility, we are turning New Rise Reno into a major U.S. SAF production center and positioning XCF for sustained, long‑term growth.” DevvStream Chairman Carl Stanton added, “Integrating environmental assets directly into the fuel value chain is essential to accelerating SAF deployment.” Southern Energy’s leadership highlighted the partnership’s potential to secure feedstock supply and expand distribution reach.
Investor reaction to the announcement was cautious. While the partnership signals a bold expansion strategy, XCF’s liquidity concerns and operational delays, combined with DevvStream’s recent losses, tempered enthusiasm. Analysts noted that the collaboration could unlock new revenue streams, but also highlighted the need for clear milestones and financial commitments to realize the projected $7 billion U.S. SAF market opportunity by 2030.
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