XCF Global prioritises speed in SAF production

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XCF Global, with Mihir Dange at the helm, wants to get on with the production of sustainable aviation fuel (SAF) quickly and efficiently. To move things along quickly, instead of a traditional IPO, XCF Global opted for a merger with a special purpose acquisition company (SPAC) Focus Impact BH3 Acquisition Co on March 11th 2024.

“A SPAC merger allows us to bring our product to market quickly to meet the demand created by the SAF Grand Challenge,” XCF’s CEO Dange told SAF Investor.

Under the Grand Challenge, the US intends to scale up the production of SAF to 35bn gallons per year by 2050 with a near-term goal of 3bn gallons per year for 2030.

XCF Global announced a definitive agreement to merge with New Rise Renewables, acquiring their flagship production facility in Reno, Nevada. This facility is expected to be operational by September 2024, producing 38m gallons of SAF annually. The company plans to leverage this acquisition as a blueprint for future sites, employing a patent-pending design that streamlines permitting and construction.
“New Rise Reno utilises a two-stage production process, combining feedstock pre-treatment with the established HEFA pathway. The facility is feedstock agnostic which allows us to react to changes in feedstock market conditions, de-risks the supply chain even in times of high volatility and affords flexibility for driving down our carbon intensity score. We intend to deploy a similar production process at our other facilities,” adds Dange.

But Dange isn’t stopping there. Recognising the urgency in scaling SAF production, XCF has also acquired strategically located sites in North Carolina and Florida. Once converted, these facilities are expected to add another 150m gallons of pure SAF production capacity within the next five years.

Securing a steady supply of feedstock, such as used cooking oil and animal fats, is crucial for large-scale production. “XCF has a feedstock agreement in place with a Fortune 50 Company which will supply non-food feedstock for its first facility, New Rise Reno. In the future, XCF intends to vertically integrate its non-food feedstock supply where possible to provide greater control of process and pricing,” explains Dange.

While conversion timelines can vary depending on the condition of a facility, XCF isn’t wasting any time. Their flagship Reno site is primed for a quick turnaround, expected to be operational in just 12 weeks by September 2024.

“XCF intends to leverage the patent pending site-layout design in place at New Rise Reno to develop smaller footprint SAF sites which not only facilitates site selection and permitting but also shortens construction time,” says Dange.

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