DevvStream Corp., XCF Global Inc. and Southern Energy Renewables Inc. signed a non‑binding memorandum of understanding on December 12 2025 to explore the creation of a unified commercial platform for low‑carbon aviation and industrial fuels. The parties intend to evaluate the construction of a new “New Rise Louisiana” sustainable aviation fuel (SAF) facility that would match the 40‑million‑gallon‑per‑year capacity of XCF’s existing New Rise Reno plant.
The proposed Louisiana site would combine DevvStream’s digital carbon‑credit marketplace, XCF’s production expertise and Southern Energy’s biomass‑to‑fuel technology. Southern’s planned facility is expected to produce 28 million gallons of SAF and 220 kilotons of methanol annually, with a total investment of roughly $1.4 billion. The collaboration would allow the three companies to bundle fuel supply, logistics and environmental‑attribute monetization into a single customer offering, potentially accelerating SAF adoption and expanding domestic capacity.
DevvStream’s financials underscore the strategic importance of the partnership. The company reported a net loss of $11.8 million for the fiscal year ended July 31 2025, up from a $9.9 million loss the year before, largely driven by higher public‑company and professional fees after its Nasdaq listing. XCF Global posted negative earnings, with an EPS of –$0.02 in fiscal 2023 and –$0.06 in the trailing 12 months, while Southern Energy’s financials were not disclosed in the announcement but the company’s large‑scale biomass project signals significant capital needs.
Management commentary highlights the intent behind the collaboration. DevvStream CEO Sunny Trinh said, “Fiscal 2025 was about building the infrastructure for growth: financially, operationally, and technologically. We are now connecting that infrastructure to a commercial low‑carbon fuels platform.” XCF Global CEO Chris Cooper added, “New Rise Reno 2 is the next leap forward in our growth strategy, and exploring a Louisiana facility aligns with our goal of becoming a major U.S. SAF production hub.”
Market reaction to the announcement was mixed. XCF Global’s shares fell sharply on December 12, largely due to a Nasdaq notification that the company had fallen below the minimum bid‑price requirement, a compliance issue that weighed heavily on investor sentiment. DevvStream’s shares saw a modest uptick, but the company’s stock has been on a downward trend over the past year, reflecting ongoing financial losses and investor concerns about its ability to monetize its technology platform.
Strategically, the partnership signals a pivot for DevvStream toward commercializing its carbon‑credit marketplace within the growing SAF market, projected to reach nearly $7 billion in the United States by 2030. The collaboration could accelerate SAF adoption and expand domestic capacity, but the non‑binding nature of the memorandum, DevvStream’s financial challenges, and XCF Global’s Nasdaq compliance issue introduce execution risk. Investors will likely view the announcement as a positive step toward diversification, tempered by the need to see concrete investment commitments and a clear path to profitability.
The collaboration represents a significant strategic move for all three companies, but its ultimate impact will depend on the parties’ ability to transition from exploration to concrete investment and construction. The announcement provides new insight into DevvStream’s growth strategy and the broader SAF market dynamics, offering material information for long‑term investors.
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