Developers eye joint low-carbon fuels platform to streamline SAF production

Three North American clean-fuel and carbon-credit developers — XCF Global, Southern Energy Renewables and DevvStream — have agreed to explore creating a joint low-carbon fuels platform that would consolidate sustainable aviation fuel production, feedstock logistics, and environmental-attribute services, the companies said Dec. 12.

The non-binding memorandum of understanding marks an attempt to simplify contracting structures in a fragmented SAF market.

The partnership would combine XCF's HEFA-based SAF model with Southern's biomass-to-methanol-to-jet technology and DevvStream's environmental attribute services, including carbon credits, CORSIA units, and LCFS credits.

The companies said the structure could streamline procurement and expand long-term offtake options for airlines and industrial buyers.

These parties will assess the commercial viability of the proposed Louisiana HEFA project, known as New Rise Louisiana, which would be comparable in scale to XCF's 38 million gal/year New Rise Reno plant.

The review will cover engineering, permitting, feedstock integration, logistics and financing, including potential municipal-bond pathways. Louisiana's Community Development Authority has previously authorized up to $402 million in revenue bonds for Southern's separate biomass-to-fuel project.

Southern is developing a biomass-to-fuel plant in Louisiana expected to produce about 28 million gal/year of SAF and 220,000 mt/year of methanol, backed by an estimated $1.4 billion investment.

The MOU also includes exploring a long-term offtake structure under which XCF could purchase SAF from Southern, subject to commercial terms.

The collaboration targets growing demand as the US SAF market is projected to reach about $7 billion by 2030 and global demand more than 5.5 billion gal/year, the companies said.

XCF ramps up broader SAF expansion strategy

The MOU comes as XCF pursues aggressive capacity expansion.

The company announced Dec. 5 that it will invest $300 million to build New Rise Reno 2, an 80 million gal/year SAF facility adjacent to its existing Reno complex, which currently produces renewable diesel at around 2,000 b/d during a SAF ramp-up review. XCF expects to resume SAF production at the first Reno plant in Q1 2026.

XCF has also signed MOUs this year with trader BGN to develop a global SAF logistics network and with New Rise Australia to deploy three renewable fuel plants using its modular production model.

The company aims to develop up to 160 million gal/year of SAF and renewable diesel capacity by 2028 under a $1 billion US and international investment plan.

Spot sustainable aviation fuel prices in Europe continued to decline in the week to Dec. 10, flattening the backwardated curve, as mandated volumes look to be well covered.

Platts, part of S&P Global Energy, assessed the SAF (HEFA-SPK) FOB FARAG premium to jet barges down $225/mt, or 12%, in the week to Dec. 10, closing at $1,645/mt.