DevvStream Highlights Letter of Intent/LOI Between Hapag-Lloyd and Southern Energy Renewables for the Development of the Environmentally Friendly Methanol Project and Long-Term Purchase Agreement, as well as Memorandum of Understanding
A new Memorandum of Understanding (MOU) expands DevvStream’s role with Southern’s environmentally friendly methanol platform amid progress on the proposed XCF-Southern-DevvStream merger proposal.
Calgary, Alberta–(ANTARA/Business Wire)– DevvStream Corp. (Nasdaq: DEVS) today highlighted the Letter of Intent (LOI) recently announced by Southern Energy Renewables Inc. with Hapag-Lloyd AG regarding the potential long-term purchase of environmentally friendly methanol from Southern’s planned Louisiana platform, as well as DevvStream’s new Memorandum of Understanding with Southern to provide advice on environmental attributes associated with Southern’s environmentally friendly methanol project.
DevvStream believes the announcement regarding Hapag-Lloyd from Southern will serve as an important market signal for green methanol and further support the feasibility of Southern’s development platform. Green methanol is expected to play a crucial role in decarbonising hard-to-abate sectors, including maritime transport, with customers increasingly seeking scalable renewable fuel alternatives.
Under the new MOU with Southern, once finalised, DevvStream will be appointed as Southern’s environmental asset advisor for environmental attributes arising from or related to Southern’s green methanol project and operations. DevvStream looks forward to providing advice to Southern on the identification, structuring, commercialisation, and monetisation of potential environmental attributes, including credits, certificates, book attributes and claims, incentives, and other environmental value streams.
DevvStream views this agreement as an important expansion of its opportunities with Southern’s green methanol platform. By helping to monetise environmental attributes associated with renewable fuels, DevvStream believes it can support the project economy and effectively help reduce the cost of using renewable and low-carbon fuels.
“The LOI announced by Southern with Hapag-Lloyd represents a strong validation point for green methanol and Southern’s development strategy,” said Sunny Trinh, Chief Executive Officer of DevvStream. “At the same time, our new MOU with Southern gives DevvStream a direct role in helping to identify and potentially monetise environmental attributes that can make renewable fuel projects more economical and easier to develop.”
Mr. Trinh continued, “These developments further support the strategic rationale for the previously announced business combination between XCF Global, Southern Energy Renewables, and DevvStream. We believe this combination is designed to create a public platform in renewable fuels, infrastructure development, and environmental asset monetisation.”
The objective of this proposed business combination is to unite XCF’s plans for a public market platform and sustainable aviation fuel (SAF) business, Southern’s green methanol development platform and clean fuels, and DevvStream’s environmental asset monetisation capabilities.
Southern’s LOI with Hapag-Lloyd remains preliminary and is subject to achieving milestones, definitive documentation, project development requirements, and other conditions. The Memorandum of Understanding (MOU) between DevvStream and Southern is subject to negotiation of a definitive agreement and includes non-binding provisions, except as expressly stated therein. The proposed business combination between XCF, Southern, and DevvStream remains subject to customary closing conditions, regulatory and shareholder approvals, and other requirements, and there can be no assurance that the transaction will be completed on the proposed terms or at all.
About DevvStream
DevvStream is a carbon management company focused on the development, investment, sale, and monetisation of environmental assets and sustainability-related projects.