XCF Global, BGN expand strategic relationship

Sustainable aviation fuel (SAF) producer XCF Global Inc. announced April 9 that it has entered into a binding term sheet with BGN INT US LLC, a global renewable fuels trading, marketing and distribution company, to explore developing a global distribution and logistics partnership for SAF, renewable diesel and renewable naphtha.

Under the term sheet, a tolling arrangement is expected to apply to XCF’s New Rise Renewables Reno plant.

XCF and BGN intend to evaluate opportunities to collaborate under a renewable fuel tolling framework on renewable fuel production, marketing and distribution across multiple regions around the world, including Europe and the Middle East.

The proposed framework includes a renewable fuel tolling arrangement and related offtake structures, as well as the anticipated expansion and cobranded distribution agreements, as well as joint development of renewable fuel production capacity.

In addition, the proposed strategic partnership seeks to promote the use of XCF’s SAF within industry trade associations and original-equipment manufacturer (OEM) networks, and throughout the customer value chain.

“This collaboration represents a critical step in expanding the global reach of renewable fuels,” said XCF CEO Chris Cooper. “Partnering with BGN would enable us to leverage our production platform, streamline logistics and accelerate commercialization on a global scale with a world-class partner as we prepare to meet surging demand for sustainable aviation fuel. This term sheet reflects a shared vision to advance a scalable, commercially viable framework for global renewable fuel production and distribution.”

BGN INT US President Cenan Ozmeral added, “We are pleased to be partnering with U.S.-based XCF in this exciting venture. BGN and XCF share a common goal to expand access to renewable fuels and accelerate the decarbonization of the aviation industry. Together, we aim to combine XCF’s scalable production model with BGN’s marketing and distribution network to create a seamless, efficient supply chain from feedstock to finished fuel. BGN’s trading strength, risk-management expertise and integrated logistics network will make SAF adoption practical and commercially viable for airlines seeking to meet tightening decarbonization targets. This is a major step, which we believe will have a significant impact on the aviation industry’s ability to reduce emissions in one of the hardest-to-abate transport sectors.”

The collaboration underscores both companies’ commitment to building a robust global supply chain at a time when demand for SAF is expanding rapidly.

According to the International Air Transport Association, airlines will need approximately 165 billion gallons of SAF annually by 2050 to meet net-zero emission targets.

Meeting this demand would require the construction of up to 7,000 new facilities worldwide.

Analysts project that the global SAF market could exceed $25 billion by 2030 and reach $270 billion by 2050, underscoring one of the most compelling growth opportunities in the global energy transition.

XCF added that this term sheet is binding, and definitive agreement remains subject to customary due diligence, technical validation and final agreements.

Additionally, XCF announced that Phillips 66 delivered formal notice to New Rise Renewables Reno, a wholly owned subsidiary of XCF, of the termination of a supply and offtake agreement dated May 23, 2017, between New Rise and Phillips 66.

The notice provides that the agreement is terminated as of May 1, 2026.