XCF Global, Inc. (NASDAQ: SAFX), DevvStream Corp. (NASDAQ: DEVS) and Southern Energy Renewables Inc. have signed a binding term sheet that will create a single low‑carbon fuels company. The agreement, executed on January 26 2026, outlines the framework for a three‑party merger that will combine XCF’s New Rise Reno sustainable aviation fuel (SAF) facility, DevvStream’s environmental‑asset monetization platform and Southern’s biomass‑to‑fuel projects in Louisiana and Texas.
The combined entity will accelerate SAF production through multiple pathways—hydroprocessed esters and fatty acids (HEFA), e‑methanol and e‑methanol‑to‑jet—and will explore the integration of small modular reactor (SMR) nuclear power and AI‑driven data‑center power. The merger positions the new company as a leading U.S. SAF producer and expands its footprint across North America and emerging markets.
An investor, EEME Energy SPV I LLC, has agreed to provide up to $10 million in equity financing to XCF. The capital will fund near‑term operations and critical upgrades at the New Rise Reno facility, which has a permitted nameplate capacity of 38 million gallons of SAF per year. The investment is intended to bring the refinery into sustained commercial production and support the ramp‑up of SAF output.
Management highlighted the complementary strengths of the three firms. XCF CEO Chris Cooper said the term sheet “formalizes a structure that is very accretive and an excellent opportunity.” DevvStream CEO Sunny Trinh noted that the merger will bring together “complementary strengths” that will accelerate growth in the low‑carbon fuels space.
Southern Energy Renewables has been advancing commercial‑scale projects in Louisiana and Texas, with the Louisiana Community Development Authority authorizing up to $402 million in revenue bonds for its Louisiana Fuel Project. The merger will allow the combined company to leverage Southern’s project pipeline and XCF’s production capacity to meet growing demand for sustainable aviation fuel.
The binding term sheet is subject to definitive agreements, regulatory approvals and other closing conditions. No definitive closing date has been set, but the parties expect to complete the transaction once the necessary approvals are obtained.
The merger reflects a broader industry trend toward decarbonization in aviation and the increasing demand for sustainable aviation fuel. By combining production, monetization and project development capabilities, the new entity will be better positioned to scale SAF production and explore complementary low‑carbon technologies.
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