New MOU expands DevvStream’s role with Southern’s green methanol platform as proposed XCF-Southern-DevvStream combination advances

DevvStream Corp. highlighted Southern Energy Renewables Inc.’s recently announced Letter of Intent with Hapag-Lloyd AG relating to the potential long-term offtake of green methanol from Southern’s planned Louisiana platform, as well as DevvStream’s new Memorandum of Understanding with Southern to advise on environmental attributes associated with Southern’s green methanol projects.

DevvStream believes Southern’s Hapag-Lloyd announcement is an important market signal for green methanol and further supports the viability of Southern’s development platform. Green methanol is expected to play an important role in the decarbonization of hard-to-abate sectors, including maritime transportation, where customers are increasingly seeking scalable renewable fuel alternatives.

Under DevvStream’s new MOU with Southern, DevvStream will upon finalization be appointed as Southern’s environmental asset advisor for environmental attributes arising from or associated with Southern’s green methanol projects and operations. DevvStream expects to advise Southern on the identification, structuring, commercialization, and monetization of potential environmental attributes, including credits, certificates, book-and-claim attributes, incentives, and other environmental value streams.

DevvStream believes this agreement represents an important extension of its opportunity with Southern’s green methanol platform. By helping monetize environmental attributes associated with renewable fuels, DevvStream believes it can support project economics and help reduce the effective cost of adopting renewable and low-carbon fuels.

“Southern’s announced LOI with Hapag-Lloyd is a strong validation point for green methanol and for Southern’s development strategy,” said Sunny Trinh, Chief Executive Officer of DevvStream. “At the same time, our new MOU with Southern gives DevvStream a direct role in helping identify and potentially monetizing the environmental attributes that can make renewable fuel projects more economic and more scalable.”

Mr. Trinh continued, “These developments further support the strategic rationale for the previously announced proposed business combination among XCF Global, Southern Energy Renewables, and DevvStream. We believe the combination is designed to create a public platform across renewable fuels, infrastructure development, and environmental asset monetization.”

The proposed business combination is intended to bring together XCF’s plans for a public-market platform and SAF business, Southern’s green methanol and clean fuels development platform, and DevvStream’s environmental asset monetization capabilities.

Southern’s LOI with Hapag-Lloyd remains preliminary and subject to milestones, definitive documentation, project development requirements, and other conditions. The DevvStream-Southern MOU is subject to the negotiation of definitive agreements and includes non-binding provisions, except as expressly provided therein. The proposed business combination among XCF, Southern, and DevvStream remains subject to customary closing conditions, regulatory and shareholder approvals, and other requirements, and there can be no assurance that the transaction will be completed on the proposed terms or at all.

Source: BUSINESS WIRE