XCF Global and BGN sign SAF tolling partnership in US, aim to scale supply

XCF Global has signed a binding term sheet with BGN INT US to develop a renewable fuels tolling and distribution partnership, as the companies position to scale sustainable aviation fuel supply amid tightening global energy markets and rising demand.

The proposed framework centers on a tolling arrangement at XCF's New Rise Renewables Reno facility in Nevada, with potential expansion to additional assets.

The agreement covers SAF, renewable diesel and renewable naphtha and includes plans for offtake structures, co-branded distribution and joint development of production capacity across multiple regions, XCF said in an April 10 statement.

The partnership builds on a prior memorandum of understanding focused on the US and extends collaboration to Europe and the Middle East, reflecting growing demand for SAF and broader low-carbon fuels.

The development comes as tightening crude supply routes and geopolitical risks have pushed jet fuel prices sharply higher in recent weeks, exposing vulnerabilities in conventional aviation fuel supply chains linked to petroleum markets.

XCF said on April 13 that waste-based SAF, produced from feedstocks such as used cooking oil, offers a structurally distinct supply chain less directly exposed to crude oil extraction and global shipping disruptions. The company positioned domestic SAF production as a potential buffer against ongoing fuel price and availability risks.

The Reno facility has a nameplate capacity of 38 million gallons/year of neat SAF, with scope for higher blended output. The companies said the partnership aims to integrate XCF's production platform with BGN's global trading, logistics and distribution network to support commercialization at scale.

"When jet fuel prices can nearly double in a matter of weeks, it exposes just how fragile crude‑based aviation fuel supply chains remain," Chris Cooper, CEO of XCF Global, said. "Waste‑based SAF starts with domestic materials, domestic infrastructure, and domestic labor. That structural difference matters, not only for decarbonization, but for fuel security and reliability when global energy systems are under stress."

The term sheet also includes provisions for co-branded distribution, joint development of additional production capacity, and engagement across industry networks to support SAF adoption.

Global SAF demand is expected to expand significantly, with industry estimates indicating a requirement of around 165 billion gal/year by 2050 to meet aviation decarbonization targets.

XCF Global's perspective builds on the company's March statement addressing the initial impacts of Middle East‑related disruptions on aviation fuel markets. Since then, volatility has continued, with airlines confronting continued uncertainty around fuel pricing and availability, the April 13 statement said.

While SAF prices can reflect broader market dynamics, the underlying supply chain for waste‑based SAF remains structurally distinct from petroleum jet fuel. Crude oil disruptions affect conventional jet fuel immediately and directly, while waste‑based SAF is not exposed to the same upstream risks, providing a meaningful layer of supply‑chain resilience.

Separately, XCF said its subsidiary has received notice of termination of a supply and offtake agreement with Phillips 66, effective May 1, 2026.