American EcoFuels eyes Midland-Odessa SAF plant in Texas, airline offtake deals

American EcoFuels said it has produced sustainable aviation fuel in a laboratory setting and is now working with engineering firms to advance commercialization, as the company pursues airline offtake agreements and a series of regulatory milestones to boost its market visibility.

The update, issued in a company press release on Aug. 27, outlines a strategy that hinges on securing offtake agreements to unlock project financing for a planned large-scale production facility in Texas's Midland-Odessa region.

The Southlake, Texas-based company is developing synthetic fuel technologies focused on SAF, synthetic paraffinic kerosene, clean diesel and related engineered hydrocarbon products, the company said.

Executive Chairman Brent Nelson said the company has completed its transition from Eco Innovation Group to American EcoFuels, a rebranding he said reflects a broader strategic focus on commercializing its proprietary fuel technologies and expanding its intellectual property portfolio.

"We've transferred all of our technology assets, including granted patents and pending applications, into American Eco Fuels," Nelson said. "Our patent efforts continue to expand, and investors should expect to see additional patent-related developments as we move forward."

Fuel technology

Nelson said the company has made progress in developing its SAF platform through its relationship with Kepler GTL Technologies, which the company said it has acquired.

The company's technology converts feedstocks, including natural gas, into fuel products through a proprietary process that produces SAF, clean diesel and naphtha, according to the company.

"Our focus is no longer proving the science," Nelson said. "We have produced the fuel. The next phase is advancing engineering and commercialization."

American EcoFuels has begun discussions with airlines regarding potential long-term offtake agreements for SAF production, the company said.

Nelson said potential offtake agreements could play a significant role in supporting future project financing and commercial deployment.

"We believe offtake agreements could help unlock project financing opportunities here in Texas," Nelson said, adding that the company continues to evaluate opportunities to deploy and potentially license its technology.

Regulatory push

The company is nearing completion of a two-year PCAOB audit process and is preparing its Form 10 filing, Nelson said, steps he described as designed to support the company's objective of becoming a fully reporting issuer and pursuing additional capital markets opportunities.

"Our goal is to complete the Form 10 process, pursue a 211 filing, move to the OTCQB, and ultimately seek an uplisting to the Texas Stock Exchange," Nelson said.

Over the next 12 to 24 months, management said it expects investors to monitor several milestones, including potential SAF offtake agreements, project financing initiatives, development of a large-scale production facility in the Midland-Odessa region, expansion of the company's patent portfolio, potential technology licensing opportunities with major industry participants, and completion of its regulatory and uplisting objectives, the company said.

The company said its gas-to-liquids and coal-to-liquids technology platforms and proprietary catalysts are intended to convert natural gas and coal-derived feedstocks into high-performance liquid hydrocarbons designed to meet the energy density requirements of aviation, transportation, defense and industrial applications while utilizing existing engines and fuel infrastructure where applicable, pending required testing and certification.

The company cautioned that its stated plans are forward-looking and subject to significant risks and uncertainties, including whether contemplated patent applications will be filed or granted, whether the PCAOB audit or Form 10 filing will be completed within the anticipated timeframe, whether its technologies will achieve anticipated performance, and whether fuels it develops will obtain required ASTM, governmental, military, aircraft or engine certifications.