DevvStream and Southern merge to create a U.S.-based platform producing carbon-negative SAF and green methanol, targeting global clean-fuel demand and compliance.
DevvStream Corp., a prominent company specializing in carbon management solutions and the monetization of environmental assets, has announced a major strategic step forward by entering into a definitive business combination agreement with Southern Energy Renewables Inc. Southern is a U.S.-based developer of low-cost, biomass-derived clean fuels, best known for its flagship project in Louisiana that plans to transform regional wood-waste feedstock into green methanol and carbon-negative sustainable aviation fuel (SAF) on a large commercial scale. The two organizations will merge under a newly formed, U.S.-domiciled parent company that is expected to be listed on Nasdaq after fulfilling all customary closing requirements.
The new combined entity aims to play a central role in helping global aviation and maritime operators comply with increasingly stringent decarbonization mandates issued under frameworks such as ReFuelEU and by global regulatory bodies like the International Maritime Organization (IMO). By developing a fully integrated clean-fuels platform anchored in Louisiana, the company intends to use domestic resources, secure supply chains, and a local workforce to manufacture carbon-negative SAF and green methanol at competitive prices.
Under the proposed structure, the combined organization will operate through two core divisions. The first will focus on climate-oriented solutions that generate environmental assets such as carbon credits. The second division will concentrate on clean-fuel production, with its initial emphasis on the previously announced Louisiana biomass-to-fuel project. By merging DevvStream's environmental-asset expertise with Southern's biomass-conversion technology, the new company seeks to lower production costs and remove a major barrier that has slowed alternative fuel adoption across the aviation and maritime industries.
Management anticipates that by taking advantage of early federal incentives, combined with co-products generated during fuel production, the platform can ultimately achieve cost competitiveness even without government subsidies. Additionally, the company plans to leverage early engagement from airlines and maritime offtakers who are preparing to meet future carbon-reduction obligations. For investors, this strategic move signifies a transformation of DevvStream—from a smaller services-oriented company into a scalable industrial clean-fuels producer with long-term revenue visibility.
Leadership of the newly formed company is expected to be headed by Carl Stanton, who will assume the role of CEO. The organization will operate under the name Southern Energy Renewables. The transaction is currently expected to close in the first half of 2026, pending regulatory clearances and shareholder approvals.
Stanton highlighted the urgency behind the merger, noting that aviation and maritime companies face some of the most aggressive global decarbonization requirements. He emphasized that despite operators’ willingness to transition, renewable fuels remain significantly more expensive than fossil alternatives—an issue the combined platform aims to solve by pairing Southern’s low-cost feedstock and proven technology with DevvStream’s carbon-credit monetization capabilities.
Jay Patel, CEO of Southern Energy Renewables, underscored Louisiana’s vital role, citing its rich wood-waste feedstock, strong infrastructure, and skilled workforce as the foundation for long-term competitiveness. Meanwhile, Chief Strategy Officer Nevin Smalls emphasized that their biomass-to-methanol-to-SAF pathway integrates proven processes and carbon capture technologies, targeting one of the lowest lifecycle carbon profiles in the market.
Southern has also agreed to an initial $2 million PIPE investment in DevvStream at $15.58 per share, reflecting confidence in DevvStream’s core business and the strategic value it brings to the merged platform. Upon closing, Southern shareholders will own roughly 70% of the combined company, while DevvStream shareholders will hold approximately 30%. Southern has also committed meaningful pre-closing capital to accelerate front-end engineering for its first commercial-scale plant.
