XCF Global Completes SAF Merger

XCF Global Capital Inc. and Focus Impact BH3 Acquisition Co. have completed their combination, creating the first publicly traded pure-play sustainable aviation fuel (SAF) producer in the United States, XCF Global Capital said.

The new entity is named XCF Global Inc. It has one operational plant. New Rise Reno, built by XCF Global Capital in Reno, Nevada, has a nameplate production capacity of 38 million gallons a year.

“XCF Global is positioned as a market leader at the intersection of aviation and decarbonization – standing at the forefront of a high-growth opportunity in synthetic aviation fuel”, XCF Global chief executive Mihir Dange said in an online statement.

“We offer the public capital markets access to one of the fastest-growing sectors in the global energy transition, and we are proud to be leading the shift toward a lower-carbon future for aviation”.

According to the merger deal, announced March 2024, XCF shareholders would own about 91.4 percent of the combined entity. The transaction implied a pro forma enterprise value of $1.84 billion.

On Monday the new company debuted on Nasdaq. “The public listing enables us to accelerate development of our SAF platform and expand production”, Dange said in a statement issued by the new entity.

XCF Global said, “The SAF sector is rapidly evolving as the aviation industry strives to meet net-zero carbon emissions by 2050. Globally, SAF production has seen significant growth, with production tripling to 600 million liters in 2023 and reaching 1.25 billion liters in 2024”.

“SAF can reduce CO2 emissions by up to 80 percent compared to conventional jet fuel, making it a crucial component in the aviation industry’s sustainability efforts”, XCF Global added.

“Major U.S. airlines, represented by Airlines for America, have committed to making 2 billion gallons of SAF available by 2030, while the U.S. Department of Energy, along with other federal agencies, has set ambitious targets under the SAF Grand Challenge, which has already led to a tenfold increase in domestic SAF production since 2021”.

The startup of the Nevada plant was announced February. New Rise’s first delivery, under a contract to sell over three million gallons, was scheduled for March. The buyer was not named, though XCF Global Capital later said it had a “long-term” commitment from Phillips 66.

XCF Global aims to have a production capacity of 159 million gallons a year by 2028, when three more projects in the pipeline become operational. One of these will rise on a lot next to the first plant and is expected to come online 2027. The other two are to rise in Florida and North Carolina and are expected to enter service 2028.

“Beyond these, XCF is actively pursuing additional sites that leverage its patent-pending modular plant design – an efficient, compact design that enables rapid deployment on 10-acre footprints across the US and globally”, Dange said in May.

“We have a long-term agreement in place with Phillips 66 to provide non-food feedstock and offtake of renewable fuels, providing cash flow visibility and stability”, Dange added. “The agreement also provides flexibility in that XCF may pursue offtake to third-party customers with blending and logistics support provided by Phillips 66”.

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