XCF Global, BGN sign MOU to build global SAF logistics network as demand accelerates

US-based XCF Global and energy trader BGN signed a memorandum of understanding to jointly develop production, distribution and logistics infrastructure for sustainable aviation fuel and other renewable fuels, the companies said Nov. 17.

The non-binding agreement aims to build a global supply chain for SAF, renewable diesel and renewable naphtha, with an initial focus on Europe and the Middle East. The framework includes potential offtake deals, co-branded distribution channels and joint development of new renewable fuel production capacity.

XCF said the partnership is designed to extend its international footprint and support the commercialization of its SAF, while leveraging BGN's trading network, risk management capabilities and logistics operations across more than 120 countries.

"This collaboration represents a critical step in expanding the global reach of renewable fuels," XCF Global CEO Chris Cooper said.

BGN President Cenan Ozmeral said combining XCF's modular production model with BGN's supply chain would help airlines access SAF at scale as they face tightening decarbonization targets.

The partnership comes as SAF demand and prices continue to climb.

Tight prompt supply, blending bottlenecks, and obligated demand pushed European SAF prices to record highs in the week ending Nov. 13.

Platts assessed the SAF (HEFA-SPK) FOB Farag outright price at $2,889/mt, up by $29/mt in the week to Nov. 12. The SAF premium to fossil jet barges rose to $2,079/mt, while the CIF cargo premium was assessed $10/mt higher at $2,089/mt.

Platts is part of S&P Global Energy.