DevvStream, Southern Energy, Frontline sign biomass fuel development deal

DevvStream Corp. (NASDAQ: DEVS) signed a term sheet with Southern Energy Renewables Inc. and Frontline BioEnergy to advance development of Southern's biomass-to-fuels platform in Louisiana, the company announced.

The collaboration will expand Frontline's existing clean-syngas demonstration unit in Nevada, Iowa, with two additional pilot-scale units: a syngas-to-methanol process demonstration unit and a methanol-to-hydrocarbons process demonstration unit. These units are intended to support production of bio-methanol and conversion of methanol into sustainable aviation fuel and other hydrocarbon products.

Southern expects to provide up to $2.05 million to fund the design, construction and commissioning of the new demonstration units, with Frontline expected to perform most engineering, procurement, fabrication and construction activities. Southern will own the equipment and materials purchased with its funding.

Under the agreement, Frontline is expected to serve as Southern's exclusive gasification provider for a five-year period for commercial deployment, subject to definitive agreements and performance terms. DevvStream will serve as the exclusive carbon credit and environmental-asset manager for Southern's commercial projects. XCF Global Inc. (NASDAQ: SAFX) is anticipated to contribute downstream fuels expertise and execution support.

The collaboration supports objectives described in a previously announced binding term sheet regarding a potential three-party merger among DevvStream, Southern and XCF Global.

"This collaboration is designed to convert innovation into bankable execution," said Sunny Trinh, chief executive officer of DevvStream. "For DevvStream shareholders, our exclusive role in the environmental-asset layer is intended to create an additional, scalable value stream tied to project performance and market demand."

DevvStream focuses on development, investment and sale of environmental assets including carbon credits and renewable energy certificates.

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