XCF Global plans to acquire West Coast renewable fuel business to build scale in SAF market

Sustainable aviation fuel (SAF) producer and project developer XCF Global Inc. announced July 28 that it has signed an exclusive, nonbinding indication of intent (IOI) with a renewable fuels infrastructure and feedstock-solutions company based in the western U.S. 

Under the terms of the IOI, XCF intends to acquire 100 percent of the outstanding equity interests in the target company.  

In consideration, XCF will issue shares of its Class A common stock to the company’s shareholders.  

Adding the target assets to XCF’s portfolio is expected to be accretive to the combined post-transaction equity valuation as part of its projected growth profile. 

The final valuation to be used in determining the shares of XCF Class A common stock to be issued in the transaction will be subject to confirmatory due diligence by XCF and its advisors.  

As part of the definitive agreement, XCF would assume certain debt obligations and issue shares of its Class A common stock to the target company’s shareholders. 

The proposed transaction, if completed, would represent a significant expansion of XCF’s infrastructure and logistics capabilities, and an important step toward vertical integration that is expected to unlock meaningful operational and financial benefits both immediately and going forward.  

XCF said it intends to integrate and leverage the target company’s pretreatment, feedstock and logistics infrastructure, including marine, truck and rail access, and advantageous proximity to major transportation networks serving high-demand SAF markets. 

The transaction would advance several key goals of XCF’s long-term strategy: 

• Increased visibility on feedstocks and security of high-purity feedstock-pretreatment capabilities.  

• Expand reach and help maximize supply optionality into the U.S. West Coast and California Low Carbon Fuel Standard markets. 

• Improve vertical integration to reduce production costs and increase margins. 

• Add scalable assets that support international licensing and growth. 

• Enhance optionality around future commercial partnerships.  

“This IOI signals continued execution of our growth strategy to build a fully integrated, Nasdaq-listed SAF and renewable fuels platform,” said Mihir Dange, CEO and board chair of XCF Global. “This transaction adds feedstock-processing capabilities, logistics advantages and deeper access to key West Coast markets. Through this proposed acquisition, XCF advances its mission of building a scalable, capital-efficient platform for clean-fuel production across North America.”  

XCF is rapidly building the foundation for a vertically integrated, scalable SAF and renewable fuels platform with global reach.  

In addition to its U.S. production facility, XCF has recently signed a memorandum of understanding to expand its SAF platform into Australia and is in early-stage discussions with potential partners for other international infrastructure-development projects. 

The proposed transaction would add: 

• Strategic access to maritime port infrastructure facilitating both domestic and international logistics. 

• Direct reach into California LCFS markets and high growth international airports across the state. 

• Critical feedstock-processing capabilities including pretreatment, used cooking oil (UCO) processing, and feedstock blending that can be integrated into XCF’s renewable fuels platform or used to create new revenue streams. 

• Complementary infrastructure to reduce logistics costs and support credit generation.  

The IOI sets out a 20-business-day exclusive negotiation period, during which XCF and the target will complete confirmatory diligence and negotiate an offer.  

The proposed transaction remains subject to customary closing conditions, confirmatory diligence, and regulatory and board approvals. 

“There’s never been more demand for real, scalable renewable fuels solutions,” added Dange. “This combination would allow us to expand our footprint, control our feedstock pipeline and create value at every step of the supply chain—from raw materials to fuels.”  

Definitive agreements are expected to be completed in the coming months, with legal, technical and commercial diligence already underway.  

XCF noted that there can be no assurance that the parties will enter into definitive agreements in a timely manner or at all, or, if definitive agreements are reached, that the terms will be consistent with those outlined in the IOI.