Wedoany.com Report-Dec.5, DevvStream Corp. and Southern Energy Renewables Inc. have signed a definitive agreement to merge into a new Nasdaq-listed U.S. company focused on large-scale production of carbon-negative sustainable aviation fuel (SAF) and green methanol. The transaction is expected to close in the first half of 2026, subject to shareholder and regulatory approvals.

The combined entity, which will operate under the Southern Energy Renewables name with Carl Stanton as CEO, will integrate Southern's Louisiana-based biomass-to-fuel platform with DevvStream's environmental-asset generation and monetization capabilities. The flagship project will convert regional wood-waste biomass into green methanol and SAF at commercial scale while capturing and sequestering CO₂ to achieve a negative carbon footprint.

Southern has already completed an approximate $2 million PIPE investment in DevvStream, acquiring 128,370 shares at $15.58 per share. Upon closing, existing Southern equity holders are expected to own approximately 70% of the combined company, with DevvStream shareholders holding the remaining 30%.

"Aviation and maritime operators are facing some of the most ambitious decarbonization mandates globally, and most of them want to comply," said Carl Stanton, Chairman of DevvStream. "But today's renewable fuel options remain materially more expensive than fossil fuels, which is slowing adoption and creating a practical barrier to transitioning at the pace regulators envision. This merger matters now because Southern's technology, low-cost feedstock, and development platform, combined with DevvStream's environmental-asset capabilities, are aimed at reducing that cost burden and enabling compliance at scale."

Jay Patel, Chief Executive Officer of Southern Energy Renewables, said: "The State of Louisiana continues to serve as an important partner in the development of this initiative, and we expect that it will continue to support the project moving forward. We believe Louisiana's combination of feedstock availability, logistics infrastructure, and experienced workforce creates a strong platform for long-term competitiveness."

Nevin Smalls, Chief Strategy Officer of Southern Energy Renewables, added: "Our roadmap is designed to deliver clean fuels at industrial scale with a clear cost advantage, creating an advanced platform with the potential to effectively compete with China and the rest of the world. Our biomass-waste-to-methanol-to-SAF pathway relies on proven technologies and integrated carbon capture, targeting one of the lowest lifecycle-carbon profiles in the market."

The merged company will operate two divisions: one focused on climate solutions and environmental-credit generation, and one dedicated to clean fuels production, initially centred on the previously announced Louisiana facility. Management intends to leverage U.S. federal incentives while pursuing cost competitiveness independent of subsidies through co-product revenue and early offtake agreements with airlines and shipping companies.