DevvStream Corp. and Southern Energy Renewables Inc. have announced an agreement to merge and create a new U.S.-based company that will be listed on Nasdaq, pending standard approvals and closing conditions. The combined entity will focus on producing green methanol and carbon-negative sustainable aviation fuel (SAF) at scale, using wood-waste biomass sourced from Louisiana. The merger brings together DevvStream’s carbon management expertise and Southern’s low-cost biomass-to-fuel platform, reports Antara News.
The new company aims to support airlines and shipping operators as they face stricter environmental rules worldwide. Its operations will be built around two divisions — one dealing with climate-related solutions and another focused on clean fuels — starting with Southern’s planned biomass-to-fuel project in Louisiana. Management expects that combining both companies’ strengths will help lower production costs and make alternative fuels more competitive. Carl Stanton, who will lead the merged company as CEO, said the merger is intended to position the new entity as a stronger industrial-scale fuels and credits business. The transaction is expected to close in the first half of 2026.
Stanton said the aviation and shipping sectors “are under pressure to cut emissions, and they want practical solutions that they can afford.” He added that renewable fuels “are still far costlier than conventional fuels,” and the merger is meant to “bring down those costs and help companies meet the new rules without slowing their operations.”
Southern Energy Renewables CEO Jay Patel said Louisiana continues to be a key partner for the project. “The state’s access to feedstock, infrastructure and a skilled workforce gives us a strong foundation for long-term growth,” he said, adding that the company expects the partnership with the state to deepen as work progresses.
Nevin Smalls, Chief Strategy Officer at Southern, said the project has been designed to produce clean fuels “on a large scale and at lower cost than many global competitors.” He noted that their production route — converting biomass waste into methanol and then into SAF — uses established technologies and integrated carbon capture, enabling “one of the lowest emissions footprints in the market.”
Stanton also confirmed that Southern has made an initial investment of about $2 million in DevvStream through the purchase of 128,370 shares. He said the investment “shows confidence in DevvStream’s core work and its importance in reducing costs for customers,” while giving DevvStream shareholders meaningful ownership in a larger and more diverse clean-fuel platform.
Key Details of the Business Combination
Ownership: After completion, Southern shareholders are expected to hold about 70% of the new company, while DevvStream shareholders will own about 30%.
Initial Investment: Southern has already invested around $2 million in DevvStream at $15.58 per share.
Project Acceleration: Southern has committed to additional spending before the merger closes, including starting engineering work for its first commercial plant.
Approvals Needed: The deal requires shareholder approval, regulatory clearance, and an effective Form S-4 registration statement with the U.S. Securities and Exchange Commission (SEC).
Further information and formal documents related to the proposed merger will be filed with the SEC, including a detailed proxy statement and prospectus for DevvStream shareholders. Investors will be able to access all filings for free once available.
The companies noted that the announcement does not constitute an offer to sell or buy securities. They also cautioned that the press release includes forward-looking statements that involve risks and uncertainties, and actual results may differ from current expectations.
