Carbon management and environmental-asset monetisation firm DevvStream and US-based biomass fuel producer Southern Energy Renewables Inc., enter into an agreement to combine under a new US-domiciled, Nasdaq-listed company.
Southern Energy Renewables has a flagship Louisiana-based project. It plans to utilise regional wood-waste biomass to deliver green methanol and carbon-negative sustainable aviation fuel (SAF).
“The State of Louisiana continues to serve as an important partner in the development of this initiative, and we expect that it will continue to support the project moving forward,” said Jay Patel, CEO of Southern Energy Renewables.
The new combined company will create an integrated clean-fuels platform using domestic feedstock. This means it can produce carbon-negative SAF and green methanol on a commercial scale. The goal is to help aviation and maritime operators meet tightening global mandates such as ReFuelEU.
“Aviation and maritime operators are facing some of the most ambitious decarbonisation mandates globally,” said Carl Stanton, chairman of DevvStream. “But today’s renewable fuel options remain materially more expensive than fossil fuels, which is slowing adoption.
“This merger matters now because Southern’s technology, low-cost feedstock, and development platform, combined with DevvStream’s environmental-asset capabilities, are aimed at reducing that cost burden and enabling compliance at scale.”
The company will have two operational divisions. The first focuses on climate solutions, while the other develops clean fuels and products.
Management expects to use federal incentives early, and target cost-competitiveness. The company also wants to leverage early airline offtake engagement, reframing alternative fuels to have long-duration revenue potential and scalability.
“Our roadmap is designed to deliver clean fuels at industrial scale with a clear cost advantage, creating an advanced platform with the potential to effectively compete with China and the rest of the world,” said Nevin Smalls, chief strategy officer of Southern Energy Renewables.
“Our biomass-waste-to-methanol-to-SAF pathway relies on proven technologies and integrated carbon capture, targeting one of the lowest lifecycle-carbon profiles in the market.”
Business combination highlights
Upon closing, Southern equity holders will take approximately 70% ownership of the combined company. DevvStream shareholders will take the remaining 30%.
Southern has completed an approximately US$2.0 million investment in DevvStream through the acquisition of 128,370 shares at $15.58 per share.
To accelerate development, Southern has committed to invest significant pre-closing capital to launch front-end engineering for its first commercial plant.
The combination is subject to shareholder, Nasdaq, and other regulatory approvals.
Carl Stanton will be CEO, and the company will operate under the name Southern Energy Renewables. Closing of the business combination should occur in the first half of next year.
