DevvStream signs term sheet with Southern Energy Renewables, Frontline BioEnergy

DevvStream (DEVS) announced that it has signed a term sheet with Southern Energy Renewables and Frontline BioEnergy, a trade name of Frontline Group, that outlines an expanded collaboration to support the development and de-risking of Southern’s planned biomass-to-fuels and chemicals platform in Louisiana. Under the term sheet, Southern expects to provide up to $2.05M to fund the design, construction, and commissioning of the MeOH PDU and MTH PDU, with Frontline expected to self-perform most engineering, procurement, fabrication, and construction activities. Southern is expected to own the equipment and materials purchased with Southern funds used to construct the PDUs. Frontline is expected to be affirmed as Southern’s exclusive gasification company and, subject to definitive agreements and performance terms, to serve as Southern’s exclusive gasification provider for a five-year period for commercial deployment. DevvStream is expected to serve as the exclusive carbon credit and environmental-asset manager for SER’s commercial projects. XCF Global (SAFX) (XCF) is anticipated to play a key role in the collaboration, contributing downstream fuels expertise, market and offtake insight, and execution support intended to help translate pilot scale validation into commercial deployment. This collaboration is also intended to support the broader strategic objectives described in a recently announced binding term sheet regarding a potential three-party merger among DevvStream, Southern, and XCF. If the three parties are able to successfully negotiate definitive agreements, DevvStream believes the Frontline pilot-scale program can help validate Southern’s biomass-to-methanol and methanol-to-jet pathways, complement XCF’s downstream SAF production capabilities, and further de-risk commercialization for the proposed Louisiana development pathway.