Southern Energy to invest $1.4bn in biomass-to-SAF site in Louisiana
Biomass-to-fuels technology company Southern Energy Renewables said it will invest $1.4bn to develop a green methanol and sustainable aviation fuel (SAF) production facility to convert Louisiana’s wood-waste biomass into low-carbon fuels.
Pre-construction planning and site development activities on the project are underway.
Construction is expected to begin in late 2027 with production anticipated in late 2029.
“Louisiana’s energy leadership is rooted in our ability to couple emerging technologies alongside the industries that have long powered our state,” Louisiana Economic Development secretary Susan B. Bourgeois said.
“Southern Energy Renewables’ plans build on that strength by bringing advanced fuel production and high-quality jobs to St. Charles Parish. This project expands the scope of our energy sector and reinforces Louisiana’s role in the nation’s energy dominance.”
The production facility located near hydrogen supply and key logistics infrastructure is Southern’s first commercial-scale development in Louisiana as it prepares for a proposed merger with DevvStream, a carbon management and monetisation firm.
“Louisiana is a vital partner in advancing our production model that includes the conversion of regional wood-waste biomass sourcing, fuel production, and aviation and maritime offtake to create a first-of-its-kind platform with the potential to compete on a global stage and reduce the global reliance on China for clean fuels,” Southern Energy Renewables CEO Jay Patel said.
“With support from LED and other local partners, our roadmap is built to deliver fuels at an industrial scale with a clear cost advantage, while creating new jobs, expanding the local economy, and strengthening America’s energy leadership to meet growing demand.”
Louisiana ED said it offered Southern Energy Renewables competitive incentives package to ensure the site was located ion the state. This includes the comprehensive workforce development solutions of LED FastStart and a $1m performance-based grant for infrastructure improvements.
The company is also expected to participate in the state’s Industrial Tax Exemption program.
Capital raise, merger update
In a separate announcement, XCF Global announced that the company’s stockholders approved the issuance of 19.99% or more of the company’s issued and outstanding common stock as of January 26, 2026 pursuant to a private placement offering of shares of common stock to a single investor.
Earlier in January, XCF reported that it had entered into a binding term sheet with Southern Energy Renewables, DevvStream and EEME Energy for a proposed business combination.
The term sheet said that XCF will invest $10m to convert and build out its New Rise Renewables Reno facility for SAF production and blending and related corporate purposes, to be funded through the sale by XCF to EEME of $10m of common stock.
As part of the planned plant conversion, XCF said it has initiated upgrades to the New Rise Renewables Reno facility, including the procurement of a new hydrotreating catalyst. This will enable the facility to convert a broad range of renewable feedstocks into high-quality neat sustainable aviation fuel (SAF).
The upgraded hydrotreating system will utilise Axens’ Vegan technology.