DevvStream, Southern Energy Renewables target low-cost, carbon-negative SAF and green methanol
DevvStream Corp., a leading carbon management and environmental-asset monetization firm, and Southern Energy Renewables Inc., a U.S.-based producer of low-cost fuels made from biomass, with a flagship Louisiana project that plans to utilize regional wood-waste biomass to deliver green methanol and carbon-negative sustainable aviation fuel (SAF) at scale, announced that they have entered into a definitive agreement to combine under a new U.S.-domiciled, Nasdaq-listed company, following customary closing conditions.
The new company plans to help aviation and maritime operators meet tightening global mandates from regulations such as ReFuelEU and organizations such as the International Maritime Organization (IMO) by creating a U.S.–built, integrated clean‑fuels platform anchored in Louisiana, using domestic feedstock and workforce to produce carbon‑negative SAF and green methanol at commercial scale. Operationally, the combined company is expected to have two divisions: one focused on climate solutions that generate environmental assets, and one centered on clean fuels and products, with an initial focus on a previously announced Louisiana biomass-to-fuel facility.
The new platform’s anticipated SAF pathway, combined with DevvStream’s environmental‑asset capabilities, is aimed at reducing the cost burden that slows alternative fuel adoption today. Management expects to utilize federal incentives early while targeting cost‑competitiveness even without these incentives, supported by various co‑products produced during the SAF process. The company also plans to leverage early airline and maritime offtaker engagement. For investors, this reframes DevvStream from a micro‑cap services profile to a financeable, industrial fuels and credits business with long‑duration revenue potential and scalability. The new company is expected to be led by Carl Stanton as CEO and operate under the name Southern Energy Renewables. Closing of the business combination is currently expected to occur in the first half of 2026.
“Aviation and maritime operators are facing some of the most ambitious decarbonization mandates globally, and most of them want to comply,” said Carl Stanton, Chairman of DevvStream. “But today’s renewable fuel options remain materially more expensive than fossil fuels, which is slowing adoption and creating a practical barrier to transitioning at the pace regulators envision. 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 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, Chief Executive Officer of Southern Energy Renewables. “We believe Louisiana’s combination of feedstock availability, logistics infrastructure, and experienced workforce creates a strong platform for long-term competitiveness, and we look forward to expanding our partnership with the State as we work to strengthen the nation’s energy leadership and supply global markets in a way that supports our expanding economy.”
“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.”
Regarding the transaction, Stanton added, “We are excited that Southern has agreed to make an initial approximately $2 million PIPE investment in DevvStream at $15.58 per share. This recognizes DevvStream’s core business and the strategic role its carbon-monetization business plays in lowering effective costs for customers. This also recognizes Southern’s industrial scale and capital intensity while giving DevvStream shareholders a substantial stake in a larger, more diversified platform dedicated to the growing SAF and green methanol markets.”
Business Combination Highlights:
- Ownership Structure: Upon closing, Southern equity holders are expected to own approximately 70% of the combined company, and DevvStream shareholders approximately 30%.
- Initial Investment: Southern has completed an approximately $2.0 million investment in DevvStream through the acquisition of 128,370 shares at $15.58 per share (the PIPE).
- Accelerated Development and Capital Commitment: To accelerate development, Southern has committed to invest significant pre-closing capital to launch front-end engineering for its first commercial plant.
- Approvals and Closing Conditions: The proposed combination is subject to shareholder approvals, Nasdaq and other regulatory approvals, effectiveness of a Form S-4 registration statement, and other customary closing conditions.
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