XCF, DevvStream, Southern Energy Renewables partner to bring transferable 45Z clean fuel credits to market
XCF Global, Inc., a key player in decarbonizing the aviation industry through sustainable aviation fuel (SAF), and DevvStream Corp., a leading carbon management and environmental-asset monetization firm, announced that as part of their previously announced three-party Business Combination Agreement (BCA) with Southern Energy Renewables Inc (Southern) the combined entity will explore the development of an integrated platform designed to generate, verify, and market 45Z Clean Fuel Production Credits generated through XCF's production of SAF.
If successfully developed, we believe this platform would represent an industry-first model in which a SAF producer and a dedicated environmental attribute monetization firm operate as a single, vertically integrated entity, linking domestic clean fuel production directly with structured transfer and sale of clean fuel tax credits.
Strategic Highlights:
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XCF's New Rise Reno facility has a permitted nameplate production capacity of 38 million gallons per year and produces SAF using domestic non-food waste for feedstocks, qualifying the company as a registered clean fuel producer under Section 45Z, which provides potential eligibility of up to $.60 per gallon in transferable tax credits for qualifying SAF production through Dec 31, 2029.
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DevvStream's environmental-asset monetization infrastructure is expected to provide the verification, recordkeeping, and buyer-matching capabilities needed to market 45Z credits under Section 6418 to unrelated corporate buyers seeking to reduce their U.S. tax liability.
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At projected SAF production volumes, and subject to facility qualifications and regulatory finalization, the combined platform could generate meaningful annual 45Z credit values, subject to final regulations, verification, and market conditions as XCF scales its planned production capacity.
Environmental Asset Bundling Opportunity
In addition to the monetization of 45Z Clean Fuel Production Credits, the combined platform intends to explore the creation of integrated environmental asset bundles that combine 45Z credits with high-quality carbon credits derived from the lifecycle emissions reductions associated with SAF production.
This approach is designed to enhance overall asset value by:
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Combining transferable tax credits (45Z) with carbon credits aligned with voluntary and compliance markets,
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Creating a multi-layered environmental product that can be structured and sold to corporate and institutional buyers seeking both tax efficiency and emissions reduction outcomes;
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Enabling portfolio-level aggregation, allowing multiple SAF facilities and environmental attributes to be bundled into larger, institutional-grade offerings with improved pricing, liquidity, and market access.
By integrating these environmental attributes into a unified offering, the combined entity aims to create a differentiated value proposition that extends beyond traditional fuel and tax credit monetization, positioning XCF's SAF production as a source of scalable, high-integrity environmental assets.
"As we bring XCF and DevvStream together, we see a compelling opportunity to create value that neither company could deliver alone. XCF is working to generate high-quality SAF from domestic feedstocks that qualify for the 45Z credit and generate carbon credits. DevvStream aims to bring the infrastructure, expertise, and market relationships to monetize environmental attributes. Together we believe we can build a first of its kind, fully integrated 45Z credit marketing capability that delivers real, measurable value to customers." Chris Cooper, CEO of XCF Global
"DevvStream was built to solve exactly this problem, helping organizations that create environmental value actually capture that value in the market. XCF's domestic SAF production is precisely the kind of verified asset our platform is designed to support. We look forward to leveraging our synergies with XCF and developing a structured 45Z and carbon credit marketing capability that can serve as a model for the industry as the credit market continues to mature." Sunny Trinh, CEO, DevvStream Corp.
Approvals and Closing Conditions
The transaction is subject to various closing conditions, including shareholder approvals, SEC registration statement effectiveness on Form S-4, stock exchange approvals including Nasdaq listing, completion of financing, plant conversion and commercial milestones and fairness opinions.
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